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F E Smith
F E Smith, Advocate
Category: Law
Satisfied Customers: 11451
Experience:  I have been practising for 30 years.
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How do I formally gift my house to my Son? Assistant: Where

Customer Question

How do I formally gift my house to my Son?
Assistant: Where are you? It matters because laws vary by location.
Customer: The property is in Walthamstow, I live in the Channel Islands
Assistant: What steps have you taken so far?
Customer: none
Assistant: Anything else you want the lawyer to know before I connect you?
Customer: I don't think so
Submitted: 4 months ago.
Category: Law
Expert:  F E Smith replied 4 months ago.

Good morning. I will try to assist with your question but need more info - also i apologise if delayed in replying

what is the reason you wish to do this?

is this property your home or rental?

how old are you and your son please?

Customer: replied 4 months ago.
He still lives in the family home and my wife and I do not. It was our home which we own out right. I am 62 my wife is 69. My Son is 42.
Expert:  F E Smith replied 4 months ago.

To transfer property from 2 names to 1 name or from 1 name to 2 names is relatively straightforward but there are a lot of forms to fill in.

The transfer deed is form TR1 https://www.gov.uk/government/publications/registered-titles-whole-transfer-tr1

as you also need AP1

https://www.gov.uk/government/publications/change-the-register-ap1

and ID1

https://www.gov.uk/government/publications/verify-identity-citizen-id1

for all the parties involved. There needs to be one of the latter forms for each person involved. It needs a passport sized photograph certified by a solicitor as being a true likeness. This is not needed if solicitors are doing the job but the solicitors will want different ID, usually a passport or driving licence and 1 or 2 utility bills.

There is also the Land Registry fee based upon the value of the house which is here:

https://www.gov.uk/guidance/hm-land-registry-registration-services-fees

Use scale 1 fees.

If there is a mortgage on the property they will need to consent to the transfer and if it is going from 2 people to 1 person they will usually refuse to remove one and would want the mortgage repaid.

There may be stamp duty depending on the money changing hands or if no money changing hands, there would be stamp duty on the transfer if the mortgage being taken over or disposed of is over £250,000. Stamp duty is based upon 50% of the mortgage. If there is no mortgage and no money changing hands, there is no stamp duty.

Please note that if this is being done to avoid the payment of care fees or the payment of inheritance tax, it will not necessarily do either

In case of care fees, if it was done to avoid the payment of care fees, the local authority can have the transfer set aside if they could convince the court that it was done to avoid the payment of care fees.

In the case of avoiding inheritance tax, it only escapes the seven year inheritance tax claim if whoever is transferring the property retains no interest in it. The person who is the recipient of the property must have free rein to do with the property as they wish sell it or remortgage it or rent it out or whatever. If not, it’s a gift with reservation which is dealt with as though it isn’t a gift at all.

There is no timescale for avoiding care fees and the gift with reservation issue also applies.

Can I clarify anything else for you?

I am happy to answer any specific points arising from this.

Please take a moment to look at the top right hand corner of the page and rate my service by clicking one of the stars at the top of the screen. It’s important you use the rating service because that gives me credit. It doesn’t just give me a pat on the head! Opinion, (Although there is an incentive scheme where the more five-star ratings I get, I do actually get a pat on the head! :-)) All you need to do is press Submit. Thank you.

If you still need any point clarifying, I will still reply because the thread does not close.

Best wishes.

FES.