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Joshua
Joshua, Lawyer
Category: Property Law
Satisfied Customers: 25426
Experience:  LL.B (Hons), Higher Prof. Dip. Law & Practice
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, I would like to transfer ownership of a property

Resolved Question:

Hello,
I would like to transfer ownership of a property from myself to my ex-partner Sarah. We split up at the end of 2011 and agreement was that I would purchase Sarah with a property to up to the value of £350,000 and pay off the mortgage within 10 years and then transfer ownership to her. I have now paid off the mortgage and want to do the transfer. What issues do I need to consider?
Submitted: 2 years ago.
Category: Property Law
Expert:  Joshua replied 2 years ago.
Joshua :

Hello and thank you for your question. I will be very pleased to assist you. I'm a practicing lawyer in England with over 10 years experience.

Joshua :

May I ask if you and Sarah were married please? If so have you received your decree absolute and have you entered into a consent order?

Joshua :

If you were not married, did you obtain a formal separation agreement or were the terms you refer to simply agreed informally between the two of you?

Customer:

Sarah and I were not married. We came to an agreement through mediation.

Joshua :

Sorry for the delay in reverting to you. Thank you for the above information.

Joshua :

The process is very simple however there could be a stamp duty implication in what you propose as you were not married if an money is changing hands or any other form of consideration is given. To confirm that no stmap duty would apply, can you confirm I correctly understand: from what you have said do I understand correctly that you agreed in your separation agreement to purchase a property for Sarah which she could live in and that you are responsible for the mortgage until such time as you you could pay off the mortgage which you would do within 10 years and you are now ready to do? In other words you are effectlively gifting her a £350K property mortgage free? Is this correct? Was nothing given to you in exchange - e.g. another property or anything else of value?

Joshua :

If you can confirm the above, with your permission I will outline the legal process involved in transfering the property. Is it your intention to each retain a solicitor to do this or do you propose to attempt to transfer the property without a solicitors assistance?

Customer:

The agreement was that I would purchase a property for Sarah up to the value of £350K. If the property cost less then I would pay the difference within the 10 years. The property that was purchased cost £278,600, is now mortgage free and I will receive nothing in return for gifting it to Sarah.

Customer:

I am happy to fo the transfer myself as assume it is a relatively simple process? Also, if I happen to die within next 7 years will this be treated as a gift for inheritance tax purposes and if so is there any way round that?

Joshua :

Thanks. That is very helpful. Based on what you say there should be no stamp duty implication.

Joshua :

If you were to die within 7 years of making the gift the value of the property would aggregate to your estate for inheritane tax although there is taper relief available after 3 years. If you wish to guard against this you could take out a term insurance policy on your life and if you wish could ask Sarah to pay the premium.

Customer:

OK. I thought as much. I currently have an insurance policy with 5 years left to run that would cover this so will maybe look at extending that to cover the 7 years

Customer:

And as far as making the transfer is it just a case of filling in some forms?

Joshua :

Bear in mind taper relief of 20% applies on IHT after three years, 40% after 4 years and so on so you can factor this in to any policy decisions. In terms of the transfer...

Joshua :

You will need to complete the following form:
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/352969/TR1.pdf

Joshua :

You will need to dig out your title register from the land registry to complete it or obtain a new one for £3 if you don't have one. Once you have the title, you simply enter the title number and address of the property copied from the title entries above. You then enter your name as transferor (exactly as the title register), Sarahs full name as transferee and her address in the box underneath.

Customer:

OK. So for what reason would I use a solicitor?

Joshua :

On page 2 in box 8 you will tick the middle box. In box 9 you can tick the top box. Box 10 you will leave blank. Box 11 you will leave blank. Finally in box 12 you will write: "Signed as a Deed by the Said [Your full Name] in the presence of: You will then sign in box 12 in front of an adult independent witness (not Sarah) and then date the form. You have then transferred the legal title to her.

Joshua :

Sarah will then need to register her ownership and she will need to pay a small fee to the Land Registry (I will confirm the amount below) and send the above form together with the following two forms:
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/352423/AP1.pdf
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/352926/ID1.pdf

Joshua :

You will both need to provide ID forms to the land registry using form ID1 (above).

Joshua :

Before you transfer the title you will need to ensure that your lender has removed the charge from the land registry electronically or by providing you with form DS1.

Joshua :

You might wish to retain a solicitor to complete the above form TR1 and ID1 for you. Equally Sarah may want to retain on to complete form ID1 and AP1 for her and actually register the transfer

Joshua :

The Land Registry fee payable by Sarah to register the transfer will be £80

Joshua :

Does the above answer all your questions or is there anything I can clarify or help you with any further?

Joshua :

Have I been able to help you with all your questions on the above?

Customer:

Sorry - just got distracted. That all sounds great thanks

Joshua :

A pleasure. If I can assist any further as the situation develops please do not hesitate to revert to me

Joshua :

If you have no further questions for now I should be very grateful if you would kindly take a moment to rate my service to you today. Your feedback is important to me. If there is anything else I can help with please reply back to me though

Joshua and other Property Law Specialists are ready to help you

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