Many people live together before getting married, and some people own homes on their own before they get married. However, once you have got married you may wish to transfer your freehold property into the ownership of both yourself and your partner. You may also wish to transfer property into the name of your partner if you are unmarried. You can do this by transferring the house into joint ownership.
What Do I Need To Know About Transferring A House Into Joint Ownership?
There are a few things that will be relevant to transferring a house into joint ownership. Consider the following points then you can decide how to proceed, and whether transferring the ownership of your property is the right choice for you.
1. Instructing a conveyancing lawyer: You may wish to instruct a conveyancing lawyer to ensure that the transaction is dealt with properly. A conveyancing lawyer has the expertise to guide you through the transfer of ownership efficiently.
2. Tax: You may have to pay tax on the transaction. The tax that you will pay on the transaction depends on whether you are married, and on whether you have a mortgage on the property and whether cash is exchanged when your transfer the property into joint ownership. There two types of tax which are often applicable to a transfer into joint ownership – capital gains tax and Stamp Duty Land Tax.
Capital gains tax does not apply to you if you are married, as married couples are exempt however there is the possibility it could apply otherwise.
Stamp Duty Land Tax will often apply if there is a mortgage existing on the property. It can also apply if you are paying cash for a share in the property. The amount will have to exceed the current Stamp Duty Land Tax threshold for you to qualify to pay.
Consult with HMRC or a property lawyer if you are confused about tax matters.
3. Fees: You will have to pay a fee to the Land Registry to transfer the property into joint ownership.
4. Forms: Unsurprisingly some form filling needs to be done to complete the transfer. You will have to complete a TR1 ‘Transfer of part of registered title (s)’ form and send it back to the relevant Land Registry office. An extra form will have to be completed if you are not using a specialist conveyancing lawyer to transfer the ownership.
If you would like any more advice on transferring a house into join ownership, or would like to contact us about a general legal enquiry, our details are below:
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