Is it Mandatory for a Solicitor to amend ownership?

SnowWhiterThanWhite

My parents wish to amend the ownership of their (rented out) property from one name into joint names.

There is no mortgage, and they have the physical deeds in their possession

They have been told by a friend that only a solicitor can deal with this? My mum has made enquiries at a local solicitors office and they want to charge £400 PLUS land registry fees.

I have looked at the land registry site but can't seem to find the answer

Help anyone?

Ian_Griffiths_Halifax

It's a question to ask a Solicitor or Licenced Conveyancer really, but I would say that it would be possible for them to do it them selves, though I wouldn't recommend it.

Are they doing this because they want to sell the house in the next few years and want to utilise both Capital Gains Tax allowances?

SnowWhiterThanWhite

The property is one house divided into 2 flats
Each flat is worth around 110k

They won't be selling, but just want to 'tidy' things up as they are both in their 70's and worried about inheritance tax, should anything happen to my Dad, as at the moment, the property is in his name only and they want it in joint names between them.

silvercar

They won't be selling, but just want to 'tidy' things up as they are both in their 70's and worried about inheritance tax, should anything happen to my Dad, as at the moment, the property is in his name only and they want it in joint names between them.

The latest changes to the inheritance tax laws removed this problem. Any inheritance between spouses has always been exempt from IHT but now any unused IHT allowance passes to the surviving spouse. So the surviving spouse can have an allowance of over 600k.

If there is no mortgage on the property and they do a 'Transfer of Equity' (one gives value/equity to the other) and the equity given is over £125000, then Stamp Duty would be payable. Is the house worth more than £250000?

No stamp duty on transfers between spouses. The property is deemed to be transferred at value and date of original purchase.

They could actually do it themselves, phone the land registry and ask for the form. They are helpful.

They would have a duty to inform any tenant of the change in landlord, but that is not onorous.

Ian_Griffiths_Halifax

Well spotted silvercar. I hadn't thought about the fact that they are married. I was thinking of the usual Tranfer of Equity you come across, when a partner goes on the deeds.

Richard_Webster

I agree with Silvercar.

SnowWhiterThanWhite

Thanks Silvercar, I will contact Land Registry for the form. Interesting about IHT, didn't know that had changed.

loulou41

Just wondering whether there is stamp duty to be paid if transfer of equity is between brother and sister. No mortgage and no money will be exchanged. Thanks

minigirl

Hello SnowWhiterThanWhite. I work in Conveyancing and £400 is extortionate! :eek:

I would definitely try to do the Transfer yourself. All you need is a form TR1 and AP1 from the Land Registry and a form SDLT60 from the Inland Revenue. Silvercar is right, you do not need to pay Stamp Duty however you will be required to complete the SDLT60 form to confirm that it is not payable. I believe the Land Registry fee is £40.00. If you need any help completing the forms do not hesitate to contact me.

loulou41 wrote: »

Just wondering whether there is stamp duty to be paid if transfer of equity is between brother and sister. No mortgage and no money will be exchanged. Thanks

loulou41, what names are currently on the title? Is it just going from 2 names to 1? Or 1 name to 2? If so, then like with SnowWhiterThanWhite you won't have to pay Stamp Duty and can probably do the transfer yourself. However if it is going from one name to another (i.e. brother's name to sister's name) then you will have to speak to the Land Registry as I have come across this in the past where they may class this as a 'purchase' and therefore Stamp Duty may be payable (if value is over £125000).

loulou41

It is going to be from joint names to 1 name. Still looking to buy a house for adult children, hubby wants it to be in sister's name only (she is more sensible) as we plan to help son buys his own later on when he is more settled. I told hubby he should put the house in both adult children names and then when we are in a position to help son, we will remove his name on the deed. I do not mind paying solicitors and land registry but will not be happy to pay stamp duty. The other idea was to leave our house with no mortgage to son but again I do no know what the future holds for us and we might need to pay for care. I will be 60 next month and hubby is 66, it is better to be prepared. I am just wondering what's best but in the end I think to be fair to the two children, it will have to be in both names. I am aware of the problems it is likely to cause in the future. I have put an offer in a house, if it is accepted, I can discuss this issue with solicitor.Thanks for your help.