Transferring Your Property

Erika discusses the points to consider when transferring your property.

It is important to consider why you would like to transfer your house.  You might wish to ensure that your house is transferred to your children or a family member, for example.  If this transfer is completed in your lifetime instead of when you pass away, you can be sure that it is going to the person or people you want it to.  However, there are potential implications to doing this.

When considering transferring your house you might wish to think about the following:

  • Can you afford to give your house away to your family? Will your income be able to provide for you in the future, without the house?
  • What income do you have for later in life e.g. state pension, private pension, dividends, rental income?
  • Do you want to keep a liferent on the property?  With a liferent, you would no longer own the property, but you would have a right to stay there for as long as you needed to. 
  •  If you retain a liferent, what would happen if the house is no longer suitable for your needs e.g. if the house became too big or less accessible for you?
  •  What are the conveyancing costs when transferring a property?
  •  Will inheritance tax be an issue? Everyone has their own individual allowance or nil rate band of £325,000 before any estate above that value has tax charged against it. There can also be an additional resident nil band of £175,000 where a house is passed to a child or other direct descendants, but that would not be available if the house has been transferred in your lifetime.

Points to consider for the transferee.

  •  If your child is added to the title deeds and this is the first house they own, they would not be entitled to any other first-time buyer initiatives.  E.g. Lifetime ISA, Lift Scheme. 
  •  If they wanted to buy another property, they could be liable for Additional Dwelling Supplement, which is now 6% of the value of the property. 
  •  If the property is sold at a later date, then Capital Gains Tax could apply to any gain in the house’s value between the time of the transfer and a future sale. 

This is a complicated area, and these are only some of the points which could be relevant to your circumstances. If you would like specific advice regarding your personal circumstances, please contact us and one of our knowledgeable team of solicitors will be happy to discuss this with you further.



If you have already been dealing with someone at the firm and have a query, please e-mail them first of all. E-mail addresses are found on our Team page.


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