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Clare
Clare, Solicitor
Category: Property Law
Satisfied Customers: 34276
Experience:  I have been a solicitor in High Street Practise since 1985 with a wide general experience.
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A couple of years ago I purchased a property from my ex-wife.

Resolved Question:

A couple of years ago I purchased a property from my ex-wife. In exchange for a very good price below market value, we added a restriction on the land registry records so that I cannot sell the property without her consent (part of this was to protect our son because if I sell the property he would not inherit it should I die). We are both happy to agree to remove that restriction with a consideration of around £110,000 (I bought the property for £120,000). If I just transfer the money to her bank account and she instructs to remove the restriction, is that ok? are there tax implications? Would there be better ways of doing this e.g. I donate the money to my son who then donates it to her mother who then removes the restriction?
Submitted: 1 year ago.
Category: Property Law
Expert:  Nicola-mod replied 1 year ago.
Hello,
I've been working hard to find a Professional to assist you with your question, but sometimes finding the right Professional can take a little longer than expected.
I wonder whether you're ok with continuing to wait for an answer. If you are, please let me know and I will continue my search. If not, feel free to let me know and I will cancel this question for you.
Thank you!
Nicola
Customer: replied 1 year ago.

Please continue searching.

Expert:  Nicola-mod replied 1 year ago.
Hello,
We will continue to look for a Professional to assist you.
Thank you for your patience,
Nicola
Expert:  Clare replied 1 year ago.
HIThank you for your questionMy name is ***** ***** do my best to help you but I need some further information first.Was this part of the financial settlement after a divorce?How much is the property worth now?
Customer: replied 1 year ago.

Thank you.

No, it was not part of financial settlement after a divorce. In fact, she bought the property after the divorce. She then decided to buy a bigger property but did not have enough funds, so we made this private arrangement for me to purchase the property for an amount less than its commercial value and agreed to have the restriction on the deeds as a way to protect our only son's interest.

I believe the property is worth some £240,000 now

Thank you

Expert:  Clare replied 1 year ago.
How much was it actually worth at that time?
Customer: replied 1 year ago.

Thank you. About the same. The purchase was done and property was registered on my name around December 2014. The property was originally purchased by my ex wife I think June 2012 for around £185,000. It has also been my main residence since around then (sorry if it is a bit unusual, I travel a lot and given our friendly relationship it has been convenient). She has another property in London where she lives and uses the property registered in my name (the matter of this question) part-time mainly to store some furniture of hers. Regards

Expert:  Clare replied 1 year ago.
Thank you for the explanation - it is rare but wonderful that you have been able to retain a friendship.There is no problem in your paying your ex direct in return for the release of the restrictionPlease ask if you need further detailsClare
Customer: replied 1 year ago.

Thank you. Could you please let me know if there are any tax implications, that you can see, for that payment to release the restriction? At some point I had imagined that it might be considered a gift but because it is a consideration, perhaps it is not a gift ... I just do not want to fall foul of some tax rule that I might be unaware of.

Expert:  Clare replied 1 year ago.
It is not a gift and you are not liable for any tax.
Clare, Solicitor
Category: Property Law
Satisfied Customers: 34276
Experience: I have been a solicitor in High Street Practise since 1985 with a wide general experience.
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