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MarianC
MarianC, Solicitor
Category: Law
Satisfied Customers: 573
Experience:  Expert
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I have some questions about property transfer. I am hoping

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I have some questions about property transfer. I am hoping to have a property transferred into my name from a sibling who does not live in the UK and am keen to understand the process; hopefully this is fairly straightforward and won't require having to pay for a solicitor or conveyancer
JA: What steps have you taken so far? Have you prepared or filed any paperwork?
Customer: No
JA: Have you talked to a lawyer about this?
Customer: No
JA: Anything else you want the Lawyer to know before I connect you?
Customer: The value of the property is approximately £120,000. I would also be keen to understand if, when the property is transferred, I can then transfer it to someone else as this might be beneficial for tax reasons due to me being the highest earner in the family.

Good morning

Thank you for your question.

Will you be paying for the property or will it be transferred for no monetary value? If money is paid for the property you will need to have a solicitor as stamp duty etc will also need to be paid. Also, if the property is mortgaged it is likely you will need a solicitor.

It is advisable to have a solicitor however you are able to do so without (if the property is being gifted). You would need to have a TR1 signed by your sibling and send this to Land Registry together with form AP1. You would both need to have an ID1 form completed to show Land Registry that your identity has been verified.

I hope this helps.

Kind regards.

MarianC, Solicitor
Category: Law
Satisfied Customers: 573
Experience: Expert
MarianC and other Law Specialists are ready to help you
Customer: replied 4 days ago.
Marian,
Thank you for your response. I have a few follow up questions if I may and also some points of clarification which should be useful to you.The property will be transferred for no monetary value. 
The property does not have a mortgage 
I should have made clear in my initial message that this property is currently being rented out to tenants 
With all of this in mind, is the situation straightforward enough to not require a solicitor 
I would be keen to understand a bit more about the 7 year rule – what are the tax implications to the beneficiary (me) if the former owner dies within that time? For context my sibling has poor health and so this is a realistic possibility 
Should I later decide to gift the property to someone else (for instance a family member or my partner who earns less money than me for income tax reasons), how does the 7 year rule apply to me and my former siblings estate should one or both of us pass away? 
The property is worth £120,000 and any gains in the value of the property since it was acquired by my sibling would be less than £10,000 over that period. Would this negate the need to worry about the need to pay capital gains tax? 
One option is to gift the property to my father who is retired and has no income. He also has health problems and so I would be keen to understand what would happen to the property should he die during the 7 year period. Would it revert to the former owner (my brother) if he is still alive? 
I currently rent a flat which I live in with my partner – what would be the implications if we chose to buy a property? Would either the gifted property or the new property be considered a second home?Lots of questions so thank you for this - naturally I will make sure to tip / pay accordingly given this is quite a detailed series of queries. 
Regards,
Paul O'Brien
Customer: replied 4 days ago.
I think I rated too early so although it says I gave no tip I will make sure to include a bonus once we conclude our conversation.

Thank you for your message.

Bear with me for a moment while I go through your queries and I will come back to you.

Whereabouts is the property and whereabouts is your sibling, are they UK resident?

Customer: replied 4 days ago.
Marian,
The property is in Newcastle, UK. My Sibling teaches and is currently based in Italy and is a UK resident.
Paul

If your sibing dies within seven years you will be personally responsible for any IHT falling due on the property. If you die within 7 years of gifting the property then the gift remains in your estate for IHT purposes. As the gains are less than £10,000 then your sibling will not be liable to CGT on the transfer. The gift to your father would be the same as the above, but not the property would not revert if legally transferred to someone.

If you buy and own your main home then any other property is a second home

Customer: replied 4 days ago.
Think I just missed your call - I am now available so do call back if you can

hi you will have to request the call again I think

Do you have any further questions?

Customer: replied 4 days ago.
No further questions thanks Marian, one of your colleagues gave me a call

Pleasure speaking just now. As discussed, if you are buying a second home you pay an extra 3% in Stamp Duty on top of the current rates for each band:

For example currently if you are purchasing a property less than £500,000 as a primary residence you will now pay no stamp duty. If you then decide to buy a second home which is less than £500,000 you pay 3% in stamp duty i.e. an extra 3% on top of the current rate (zero). I trust this assists.

Very best

Customer: replied 4 days ago.
Thanks Joe. Much appreciated. I have one final question if I may regarding the question of transferring the property to my father. He currently owns one home already. Were my sibling's property to be gifted to him, what would be the tax implications for my Dad, as an owner of two homes?
Customer: replied 4 days ago.
My understanding from doing some reading just now is that if my Dad leaves his property to his children, the tax free allowance for inheritance tax rises to 500k. Can you confirm this is the case and would cover both his main residence (which he currently owns) and the second additional property (which we are considering gifting him from my sibling)?

Hello, yes, someone leaving a property to direct descendants is entitled to the extra allowance, however I do not know if there may be a technicality where that home in question has first been gifted to him by his own beneficiaries and no, it would not cover both properties he would have to elect which one.

Marian

Please rate my response as before given the extra detailed questions