Gifting a properly
Discussion
I preferred your self titled thread.
Any mid sized sol will work with an accountant if you don’t have one. An accountant on their own won’t be anywhere near the land reg.
Your daughter will still need to pay stamp, even if paying notionally £0 for the property (or everyone would simply transfer to other people, no one would sell).
Why don’t you call the sol you used to buy it only 5 years ago?
Any mid sized sol will work with an accountant if you don’t have one. An accountant on their own won’t be anywhere near the land reg.
Your daughter will still need to pay stamp, even if paying notionally £0 for the property (or everyone would simply transfer to other people, no one would sell).
Why don’t you call the sol you used to buy it only 5 years ago?
Edited by Croutons on Monday 28th January 21:11
Sarnie said:
stuartdenton said:
I can clear the morgage then gift it but she would have to arrange a morgage when it was hers
If you are clearing the mortgage and then gifting her the property, why does she need to arrange a mortgage?
Are you gifting it to her or is she buying it from you?!
desolate said:
roadsmash said:
Yep really confused.
Are you gifting it to her or is she buying it from you?!
Sounds like he is gifting her the equity. I suppose it depends on the CGT and SDLT situation but it could be worth just giving her the 55k.Are you gifting it to her or is she buying it from you?!
Assuming your child is 18 or over;
Any transfer will be deemed to take place at market value, so you may have a capital gain.
SDLT will be payable on the consideration you receive, sounds like nil if you’re gifting it (without the mortgage).
You’ll have made a gift (PET) for IHT purposes.
You’ll need a solicitor for conveyancing, and maybe an accountant to work out the gain and tax - or ask someone nicely on PH.
Any transfer will be deemed to take place at market value, so you may have a capital gain.
SDLT will be payable on the consideration you receive, sounds like nil if you’re gifting it (without the mortgage).
You’ll have made a gift (PET) for IHT purposes.
You’ll need a solicitor for conveyancing, and maybe an accountant to work out the gain and tax - or ask someone nicely on PH.
Alpinestars said:
SDLT will be payable on the consideration you receive, sounds like nil if you’re gifting it (without the mortgage).
This is the bit that isn't clear from the OP's statements.It sounds like he will clear the mortgage with cash and give the unencumbered property to the recipient, who will raise their own mortgage against it.
However, what does the recipient do with the cash? If she gives it back to OP then this presumably counts as 'consideration' for the property and is eligible for SDLT.
NickCQ said:
Alpinestars said:
SDLT will be payable on the consideration you receive, sounds like nil if you’re gifting it (without the mortgage).
This is the bit that isn't clear from the OP's statements.It sounds like he will clear the mortgage with cash and give the unencumbered property to the recipient, who will raise their own mortgage against it.
However, what does the recipient do with the cash? If she gives it back to OP then this presumably counts as 'consideration' for the property and is eligible for SDLT.
stuartdenton said:
Hi sorry for the confusion, as others have said lam really giving her the equity. She and her husband like the idear of having a buy to let so the reason for the proposed transfer. Also the property has a long term tenant so quite hassle free.
What do you mean by giving her the equity? The property with the mortgage?stuartdenton said:
Hi sorry for the confusion, as others have said lam really giving her the equity. She and her husband like the idear of having a buy to let so the reason for the proposed transfer. Also the property has a long term tenant so quite hassle free.
What needs to happen is that your daughter buys the property from you in the normal way, with your gifting her the equity to form her deposit and raising a mortgage in the normal way, to the amount of the current mortgage.........we do a number of these per year........but you need some professional advice on a few counts here....Alpinestars said:
NickCQ said:
Alpinestars said:
SDLT will be payable on the consideration you receive, sounds like nil if you’re gifting it (without the mortgage).
This is the bit that isn't clear from the OP's statements.It sounds like he will clear the mortgage with cash and give the unencumbered property to the recipient, who will raise their own mortgage against it.
However, what does the recipient do with the cash? If she gives it back to OP then this presumably counts as 'consideration' for the property and is eligible for SDLT.
NickCQ said:
Alpinestars said:
NickCQ said:
Alpinestars said:
SDLT will be payable on the consideration you receive, sounds like nil if you’re gifting it (without the mortgage).
This is the bit that isn't clear from the OP's statements.It sounds like he will clear the mortgage with cash and give the unencumbered property to the recipient, who will raise their own mortgage against it.
However, what does the recipient do with the cash? If she gives it back to OP then this presumably counts as 'consideration' for the property and is eligible for SDLT.
Gassing Station | Finance | Top of Page | What's New | My Stuff