8:55 AM, 13th February 2020, About A year ago 8
I have a friend who bought a property 11 years ago, but had to add his mother to the deeds and the mortgage to be able to get the mortgage amount needed.
The plan was, or should have been, to hold the property as tenants in common with his mum only owning 1%. However, from the TR1 form completed by the solicitor it says tenants in common in equal shares. My friend now wants to remove his mum, but this could cause a CGT liability for his mum as the property has gone up in value by about £115k (minimal stamp duty as outstanding mortgage £100k and no other payment being made)
I don’t not think a separate declaration of trust was done and the solicitor says the paperwork has now been destroyed
So my question is can he claim beneficial ownership as he has lived there all the time and his mum lives elsewhere in which case will there be no CGT to pay if he removes his mum from the deeds or sells the property.
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