Do I need a solicitor to transfer ownership of a property? It's possible to change the names on title deed yourself without help from anyone else. You simply need to complete the right forms and pay any fee.
A Conveyancing Solicitor will likely charge between £100 and £500 + VAT.
The most common way to transfer property to your children is through gifting it. This is usually done to ensure they will not have to pay inheritance tax when you die. Inheritance tax starts at 40%. It applies to any property you own over £325,000.
Applications to remove a mortgage are automated and returned within a day. Over half of the remaining applications to update the register, such as changing a name or transferring a property title, take 5 weeks to complete, with most completed in just over 3 months.
You don't have to use a solicitor or other legal adviser to complete the form and send it to us, but the help we can give you is limited. We cannot give you legal advice. If a mortgage is involved, the lender may insist you use a solicitor or licensed conveyancer.
Do I need a solicitor to transfer ownership of a property? It's possible to change the names on title deed yourself without help from anyone else. You simply need to complete the right forms and pay any fee.
As a homeowner, you are permitted to give your property to your children at any time, even if you live in it. But there are a few things you should be aware of being signing over the family home.
Gift the house
When you give anyone other than your spouse property valued at more than $16,000 ($32,000 per couple) in any one year, you have to file a gift tax form. But you can gift a total of $12.06 million (in 2022) over your lifetime without incurring a gift tax.
Gifting your home while you are alive means there will be no inheritance tax payable as long as you: Move out or pay market rent to your children. Live for seven years after the handover (you only need to worry about the seven year rule if you give away more than £325,000 in gifts in the seven years before you die).
Gifting property to family members with deed of gift
Despite the amounts involved, it is possible to transfer ownership of your property without money changing hands. This process can either be called a deed of gift or transfer of gift, both definitions mean the same thing.
If the property is bought and is gifted immediately to the children there should be no gain to tax, provided there is no increase in value between the dates of purchase and gift. Where the property gifted was the donor's main home, Principal Private Residence relief (PPR) may exempt some or all of the gains from CGT.
The transfer process can take up to 3 months. There are different phases involved in the transfer of a property.
Getting the name changed on your deeds is an easy process and you do not need to involve a solicitor. Generally there is no fee to pay either. You simply need to send a letter to the Land Registry office requesting the name change, together with either the original or a certified copy of your marriage certificate.
Notify the Land Registry: Finally, the details of the deed transfer will need to be passed on to the . This will involve a fee which can range from around £50 to nearly £1000 – the exact fee is dependent on the value of the property.
In summary, it is perfectly possible to sell your property without a solicitor – and in some cases, this can be a good option.
You can give away your house to your child and still live in it, but you will have to pay bills and rent at the market rental value rate which is the amount that houses are currently being rented at in the area.
Your parents can give their home to you as a tax-free gift if the transaction meets the Internal Revenue Service definition of a gift. Your parents must legally own the property and intend to give it to you as a gift. They must relinquish all rights and ownership of the house and retitle the house in your name.
There is normally no IHT to pay if you pass on a home, move out and live in another property for seven years. You need to pay the market rent and your share of the bills if you want to carry on living in it, otherwise you will be treated as the beneficial owner and it will remain as part of your estate.
Can I sell my house to my child for £1? Legally, you are able to sell your property to your child for any price you both agree, even as low as £1.
If you get land or property as a gift or from a will
If you get land or property under the terms of a will, there's no need to tell HMRC and you will not pay Stamp Duty Land Tax. This applies even if you take on an outstanding mortgage on the property on the date the person died.
Capital Gains Tax Considerations
It's generally better to receive real estate as an inheritance rather than as an outright gift because of capital gains implications.
Do both parties need a solicitor for transfer of equity? This depends on whether you are adding someone onto the legal title or if you are removing someone. If the latter then if there is consideration then it is likely the party being removed should seek a separate transfer of equity solicitor.
You must send HM Land Registry an application to change the register when you change your name. You do not have to pay anything to do this. How to apply depends on which documents you can send that prove your name has changed. You'll get back any official certificates you send in after the register has been updated.