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F E Smith
F E Smith, Advocate
Category: Law
Satisfied Customers: 17181
Experience:  I have been practising for 30 years.
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My mum wants to transfer ownership of her house to me her

Customer Question

My mum wants to transfer ownership of her house to me her only son house is mortgage free how can ee do this what is the cost?
JA: Where is she? It matters because laws vary by location.
Customer: London se9 4ny
JA: What steps has she taken so far?
Customer: None
JA: Anything else you want the Lawyer to know before I connect you?
Customer: No
Submitted: 4 days ago.
Category: Law
Expert:  F E Smith replied 4 days ago.

Welcome to Just Answer.

I will be happy to assist with your question today. I need some time to consider this and compose a response. There is NO need to wait online because you will get an email when I respond. Sometimes it will be minutes, sometimes longer.

I apologise for any unavoidable delay, but rest assured I have not forgotten your question.

what is the reason she wishes to do this and

is she going to stay living in property and is there a mortgage?

Customer: replied 4 days ago.
Will still live there no mortgage
Wants things settĺed she is 90 but sound of mind and body
Expert:  F E Smith replied 4 days ago.

The process is not for the fainthearted although it’s not an uncommon question and therefore I have a standard cut-and-paste answer which is below: a solicitor would probably charge under GBP500 plus VAT plus the land registry fee:

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

The transfer deed for sale or simple transfer is form TR1

https://www.gov.uk/government/publications/registered-titles-whole-transfer-tr1

and here are some notes on that form: https://www.gov.uk/government/publications/registered-titles-whole-transfer-tr1/guidance-completing-form-tr1-for-the-transfer-of-registered-property

and 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.

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.

If it is a second home then the limit goes down to 40k and a higher rate of SDLT is payable

A solicitor would normally charge about £300 plus VAT plus the land registry for dealing with this if you don’t feel like doing it yourself. Any high street solicitor that does conveyancing deal with this. The process is very straightforward for a conveyancing solicitor but a bit of a nightmare for an individual with no experience of doing property transactions..

As one person is potentially being advantaged and/or one person is potentially being disadvantaged, it’s essential to take independent legal advice on the effect of this so that some stage in the future, neither party can complain that they were coerced into doing this.

Incidentally, the process is exactly the same as selling a property and buying a property although the parties are different and no money is changing hands.

In effect the current owner(s) sells the property and the new owner (s) buys the property albeit with no money changing hands. There is obviously no contract in that case but the transfer deed and the rest of the documentation is the same.

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.

I am glad to help.

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If you still need any points clarifying, I will be happy to reply because the thread does not close. In fact, it remains open indefinitely.

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Thank you.

Best wishes.

FES