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Transfer flat ownership to child

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alinabolat
alinabolat Posts: 1 Newbie
in House buying, renting & selling
Hi all!
I'm new to this forum so please excuse any errors in terminology.
Basically I own a flat, leasehold and it is currently registered on my name in the Land Registry database.I let this flat as private landlord for past 5 years.
Now I want to transfer the ownership to my daughter, who has been managing the letting and utilities maintenance.
How should I go about it? are there any hidden costs?
According to Gov.uk/Land Registry the procedure is very straightforward, but I doubt it...

I would really appreciate if someone could share similar experiences or advise.
Thanks!

Comments

  • xylophone
    xylophone Posts: 44,427 Forumite
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    You own the property outright and mortgage free?

    You wish to make an outright gift to your daughter?

    Have you considered any CGT liability?

    Have you considered IHT implications?

    Does your daughter already own a residential property?
  • MobileSaver
    MobileSaver Posts: 4,234 Forumite
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    alinabolat wrote: »
    Transfer flat ownership to child

    What age is the "child?" No-one under 18 years of age can own property or land except by way of a trust.
    Every generation blames the one before...
    Mike + The Mechanics - The Living Years
  • davidmcn
    davidmcn Posts: 23,596 Forumite
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    MobileSaver wrote: »
    What age is the "child?" No-one under 18 years of age can own property or land except by way of a trust.
    Given she has "been managing the letting and utilities maintenance" I am assuming she is actually an adult.
  • booksurr
    booksurr Posts: 3,700 Forumite
    edited 12 March 2017 at 1:25PM
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    alinabolat wrote: »
    How should I go about it? are there any hidden costs?
    According to Gov.uk/Land Registry the procedure is very straightforward, but I doubt it...
    1. get a market valuation of the property done as at the date you wish to transfer it - it would be best if this were formally documented by a professional valuer to add credibility to the figure

    2. Calculate the Capital Gains Tax liability you have triggered by "disposing" of the property to your daughter. As you are "connected persons" the market value at point of disposal must be used and will be checked by HMRC using its own valuation. As you may need to dispute it if they say yours is wrong, that is why you may need to call upon a credible professional to support the value you used in your tax calculation.

    3. Your daughter will need to pay any SDLT due if she has taken on a mortgage liability and is already an owner of another property herself. If there is no mortgage required by her then fair enough there is no chargeable consideration in a straight gift, so no SDLT payable by her in that case.

    4. Complete the transfer at the Land Registry by either DIY the transfer forms or getting a solicitor to do it for you. Either way you will need a solicitor to sign off on the ID form required by the LR

    5. Your daughter must notify in writing to the tenant(s) that she has taken over as the new LL. Any deposit will also need to be transferred from your name to your daughter's name. Failure to do either can have repercussions at a later date...
  • da_rule
    da_rule Posts: 3,618 Forumite
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    Don't forget to also check your lease for any fees you may have to pay and notices you may have to give to the freeholder in order to assign the lease.
  • teddysmum
    teddysmum Posts: 9,471 Forumite
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    booksurr wrote: »


    4. Complete the transfer at the Land Registry by either DIY the transfer forms or getting a solicitor to do it for you. Either way you will need a solicitor to sign off on the ID form required by the LR
    I don't know whether things have changed in the last few years and whether it just applies to married couples, but I understood that a solicitor was not required, if the people involved in the transfer attend their Land Registry regional office in person, with any of the ID documents listed.
  • G_M
    G_M Posts: 51,977 Forumite
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    teddysmum wrote: »
    I don't know whether things have changed in the last few years and whether it just applies to married couples, but I understood that a solicitor was not required, if the people involved in the transfer attend their Land Registry regional office in person, with any of the ID documents listed.
    Provided you submit the transfer forms at the same time, a local LR office can verify your ID at the same time.
  • booksurr
    booksurr Posts: 3,700 Forumite
    edited 12 March 2017 at 5:58PM
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    teddysmum wrote: »
    I don't know whether things have changed in the last few years and whether it just applies to married couples, but I understood that a solicitor was not required, if the people involved in the transfer attend their Land Registry regional office in person, with any of the ID documents listed.
    they haven't, but there are only 14 LR offices in England so the economics of physically attending one just to avoid the fee charged by a solicitor for witnessing the ID1 form may be counter productive, then again it all depends on how much the solicitor would charge!

    https://www.gov.uk/guidance/completing-forms-id1-and-id2

    https://www.gov.uk/government/publications/land-registry-office-addresses/office-addresses

    also of course I have assumed that OP is not from Wales, N Ireland or is a (soon to be?) non UK person who wears a kilt and sporran from north of the border.
  • davidmcn
    davidmcn Posts: 23,596 Forumite
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    booksurr wrote: »
    also of course I have assumed that OP is not from Wales, N Ireland or is a (soon to be?) non UK person who wears a kilt and sporran from north of the border.

    If the OP is correct about the leasehold bit then no, not Scotland - we own our flats here rather than lease them.
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