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JGM, Solicitor
Category: Law
Satisfied Customers: 12195
Experience:  30 years as a practising solicitor.
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I have circa 26,000 left to pay on a mortgage on residential

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I have circa 26,000 left to pay on a mortgage on residential flat in Edinburgh. I am 63, divorced and have 1 daughter - who is resident in the property.
I want to find a way whereby I transfer the property to my daughter, but at the same time have right to residence until I die.
Is there a solution to this? Would it involve taxes, if so how much?
Thank you for your question.
You can transfer the property to your daughter but retain a liferent to yourself. A liferent means that you have the right to occupy the property for life.
There are no capital gains tax implications as your daughter stays in the property already. If you survive seven years from the transfer there are no inheritance tax issues either, even assuming your estate is worth over £335000.
The one issue is the mortgage. If you ar not going to pay this off at the time of the transfer, your daughter should ideally get a mortgage of her own to repay your mortgage. However, if she doesn't, the security by you in favour of the lender will remain on record until repayment is made in full.
I hope this helps.
Please leave a positive response so that I am credited for my time.
Customer: replied 2 years ago.

Thank you for this - most useful.

Concerning the liferent, does the rent need to be set at a "reasonable market price" or can me and my daughter contract to a symbolic or peppercorn rent, say 50 pounds a month?

I notice your disclaimer - and I understand it, legal advice only, no lawyer-client relationship.

But, could our relationship become lawyer-client, for the purposes of drawing up the liferent contact - or do I need to seek a solicitor on my own.

Do I need to speak to a solicitor - or do I simply need to go to my lender, Clydesdale bank, and ask them to arrange the transfer?

A liferent interest in a property means that you stay there rent free. It is a heritable liferent, not a tenancy.
You are called the liferenter and your daughter is called the fiar, pronounced FEE-ER.
Experts of JustAnswer cannot take on customers as their private clients. It's against the site rules but you will have to instruct a solicitor. This is not something that your lender will deal with. It is a conveyancing issue.
JGM and 4 other Law Specialists are ready to help you