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Stuart J
Stuart J, Solicitor
Category: Law
Satisfied Customers: 26387
Experience:  Senior Partner at Berkson Wallace
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I was wondering if it’s possible for my husband to transfer

Customer Question

Hey I was wondering if it’s possible for my husband to transfer the deeds of a property he owns without a mortgage to my name? And what the cost/tax would be? The property is worth £200,000 and I don’t own any other properties.
JA: What steps has he taken so far? Has he prepared or filed any paperwork?
Customer: nothing yet we don’t own the property yet It will be next year we need to do thid this
JA: Where is the property located?
Customer: glasgow
JA: Is there anything else the Lawyer should know before I connect you? Rest assured that they'll be able to help you.
Customer: I don’t think so
Submitted: 6 days ago.
Category: Law
Expert:  Stuart J replied 6 days ago.

Hello. Thank you for the question. It is my pleasure to assist your with this today.
I have been in the legal profession, in high street practice, for 30 years so I have wide range of experience in a great many different aspects of law.
Please bear with me and I will be online and off-line from time to time and therefore, may be delayed getting back to you. You will receive an email when I reply.

Expert:  Stuart J replied 6 days ago.

Do you mean he is in the process of buying it at moment?

and why does he wish to do this?

Customer: replied 6 days ago.
Customer: replied 6 days ago.
we are buying this as a buy to let property, but we need a £60,000 mortgage which I cannot obtain. He will need to get the mortgage in his name and then with his bonus for next year he will pay that off, and transfer the property to my name to avoid the 45% tax bracket
Customer: replied 6 days ago.
This is our plan anyway
Customer: replied 6 days ago.
We would like to know the costs this would incur, it would be the only property I would own so would we have to pay stamp duty again if he gifted it to me? What would the fees roughly be? I saw that the hm land registry fee is around £230
Expert:  Stuart J replied 6 days ago.

Transferring the property into your name is ***** ***** for a solicitor.

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.

A solicitor would normally charge about £500 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..

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.

If on the other hand you are doing this to avoid the extra Stamp Duty Land Tax on the second property, as you are married, it won’t. It doesn’t matter if you buy one property and he buys the other, you are treated as buying jointly even if you are not.

Sorry, I know it’s not the answer you wanted.

Thank you for letting me assist you with your legal question. I am glad that I was able to help.

I am not certain whether that answers the question for you or not, but I am happy to answer any specific points arising from this.

It will be my pleasure to help you again either further with this or any future questions you have

Kind regards

Stuart

Customer: replied 6 days ago.
That’s ok, thank you for letting me know. So to be clear then the fees are likely to be £500 + tax plus land registry fees and as we are married will have to pay stamp duty twice. That’s correct?It’s a gift not to avoid inheritance tax or care, we are creating an investment company in my name, I will manage it and it will be my job. I just cannot currently get the mortgage myself so it has to start off in his name
Expert:  Stuart J replied 6 days ago.

It’s straightforward for any conveyancing solicitor so shop around.

You don’t pay SDLT on this transfer because you are not paying any money.

However if you own one property and your husband buys another or vice versa, you pay the increased rate of tax on the second property. You wouldn’t if you were not married.

Some couples have actually got divorced to avoid the higher rate of stamp duty, and then got married again. It’s much easier now with no-fault divorce. A bit drastic but that’s the situation.

Customer: replied 6 days ago.
Thank you for your insight, it’s been very useful
Expert:  Stuart J replied 6 days ago.

It's my pleasure to help. I’m glad that I was able to help so far. Thank you for trusting Just Answer with your legal problem. Can I help you any further with this? I'm happy to clarify anything which is outstanding. Please don't hesitate to ask. Kind regards Stuart

Expert:  Stuart J replied 6 days ago.

Hello again. If you don’t have any further questions, I will mark this question thread as complete but don’t worry, the thread stays open if anything else crops up over the course of the next days weeks or months. I’m glad that I was able to help. Thank you for trusting Just Answer with your legal problem. Kind regards Stuart

Customer: replied 6 days ago.
Thanks yes I’m all done, you were super informative and I really appreciate it
Expert:  Stuart J replied 6 days ago.

Excellent. Thank you for letting me know.

By the way, if you would like to ask me a new question in the future, (not just clarification on this thread, then please just type @ (the at sign) followed by my name and you’ll be able to select my username to tag me in the question.

If you like, you can also put “For Stuart J only” in the question thread and then the other experts will know that it’s for me.

You can also tag me as one of your favourite experts.

Thank you

Kind regards.

Stuart