Transferring deeds into joint names

by Readers Question

3 years ago

Transferring deeds into joint names

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Transferring deeds into joint names

I’m looking for advise from anyone regarding the most cost effective way of transferring deeds into joint names. Transferring deeds into joint names

We started out our buy to let business 5 years ago, with initially 3 properties and at that time put the deeds for those three houses into my wife’s name for tax purposes. 5 years later it now makes more sense for the equity to be split equally between the two of us.

I recently got a quote for doing that from a local solicitor, who I had previously used, and was quoted £478 per property. On the face of it that seems excessive to me … however I’d just like to throw it out as a question to see if this is roughly the going rate ….and if anyone else has experience of transferring equity between spouses for tax purposes.

I’m not sure if it will make any difference to the answer but the houses are all owned outright with no mortgage.

Thanks for anyone’s help in advance and I’d also just like to say that during the 5 years of being a landlord I’ve found Property118 to be a brilliant resource.

There are many websites, forums and associations out there but this is the only one I regularly come back to and have found it to be really valuable because of the quality of advice and answers as well as people’s willingness to share their experiences openly.

Thanks!

Kevin



Comments

Mark Alexander

3 years ago

Hi Kevin

In my humble opinion, the fees quoted by your regular solicitor are extortionate.

These guys are specialists in this field and will quote you happy >>> http://buytoletconveyancing.co.uk/

Thanks for the compliments too by the way 😀
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Mark Alexander

3 years ago

Hi Kevin

I forgot to say, please come back and let us know how you get on.

I suspect I can guess why the quote you have been given by your solicitor is so ludicrous. It is probably because your solicitor has only considered amending the legal title as opposed to considering the beneficial interest. To make changes at land registry is far more complicated than the alternatives, incurs extra fees and is frankly completely unnecessary. You should be able to obtain fully insured legal advice on this matter from an experienced solicitor for less than half what you have been quoted, including general tax advice.
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Michael Barnes

3 years ago

I have recently been quoted £350 +VAT +£30 to £60 land registry fees + £11 fot title (not sure what 'title' is, but all 3 quotes included it).

I have now used Mark's link above.

Michael Barnes

3 years ago

Reply to the comment left by "Mark Alexander" at "19/03/2015 - 13:48":

Mark,
Can you give some indication of what the alternatives are and why one might consider them?

Mark Alexander

3 years ago

Reply to the comment left by "Michael Barnes" at "20/03/2015 - 09:52":

Declaration of Trust is equally effective, far cheaper and far more flexible 🙂
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Andy 46

3 years ago

I own a property with my brother no mortgage. What is it called that we need to do to for in the event of one of our deaths? I did see it mentioned before but forgot what it is called????

Carol Thomas

3 years ago

Reply to the comment left by "Mark Alexander" at "20/03/2015 - 09:53":

Hi Mark. Just did a search on the web and found a site call lawontheweb. It's a UK a based website and has some very useful information.

Mark Bennett

3 years ago

Reply to the comment left by "Andy 46" at "20/03/2015 - 12:06":

Generally, you need to have the title held as Tenants in Common as opposed to Joint Tenants. I'd be surprised if your original solicitor hadn't already done this but worth checking and also take professional advice based on both yours and your brothers circumstances as there may be other options open to you.

Mark Alexander

3 years ago

Reply to the comment left by "Michael Barnes" at "20/03/2015 - 09:52":

I also forgot to mention, transfers can attract SDLT, using a Declaration of Trust doesn't.

Also, transfers may attract an immediate CGT liability if they are not to a spouse but using a Declaration of Trust triggers no immediate liability
.

Mark Bennett

3 years ago

Reply to the comment left by "Mark Alexander" at "20/03/2015 - 09:53":

Many trusts have very penal tax rates against income so be careful with this. Additionally, you may end up paying tax twice i.e. once by the trustees and again by the benficiaries. Your affairs with HMRC will also become more complicated. You will need a good solicitor to set up the trust and you may find that the fees are more expensive than a straight forward change of title with the Land Registry. Generally, I haven't found any trust arrangement that is suitable for an income generating property investment.

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