When you buy a property, your ownership is registered against the title at HM Land Registry. We take a look at how to transfer ownership.
Home ownership may change over time as people move, separate or die. It is important to deal with the transfer of legal title correctly to prevent problems in the future.
When you purchase a home, your conveyancer will deal with the registration of your ownership at the Land Registry. This could be in your sole name or jointly with someone else. Over time, you may wish to change this ownership, for example if a joint owner moves out and you agree that the property will be owned by you alone.
Transferring a property into a sole name
If the transfer is happening as a result of a divorce or separation, you should take professional advice to ensure that you are receiving everything to which you are entitled. If a property is being transferred other than in a divorce settlement, there may be Stamp Duty Land Tax implications, so you must check this before registering the transfer.
You will need to execute a transfer deed and complete the Land Registry form entitled Transfer of Whole of Registered Title, then send both documents to the Land Registry with their fee and identification documentation.
Adding a name to the title
If you want to transfer a property from sole ownership to joint ownership, you will again need to execute a transfer deed and send it to the Land Registry with their required documentation.
You will need to decide whether you wish to hold the property as joint tenants or tenants in common and it is advisable to take legal advice to ensure you choose the correct type of ownership.
Transferring a property for estate planning
You may decide to transfer a property as part of your estate planning, to minimise the amount of Inheritance Tax payable when your estate is administered. Deciding how best to reduce any future Inheritance Tax bill while protecting your right to live in your home can be complicated and you should seek legal advice before gifting your property to relatives.
Transferring a property subject to a mortgage
Where there is a mortgage over a property, the lender will have to give their permission to any transfer. The Land Registry will not register a transfer until this is provided. If the property is to be transferred into a sole name, you may have to satisfy the lender that you are able to make future mortgage payments.
If the property is to be transferred into joint names, the new owner will become equally liable for the mortgage debt and the lender may want to carry out background checks before consenting.
If you would like to speak to one of our expert property or family lawyers, ring us on 0333 305 5189 or email us at info@lpropertylawyers.co.uk
