Transfers of existing property, often called transfers of equity, can be into joint names, or into a sole name or from the name of a limited company or partnership into individual names.
These can take place for various reasons and these are some examples when such transfers may arise:
- On marriage or a civil partnership.
- Couples living together.
- Transfers by way of gift to children or other family members.
- Following a relationship breakdown.
- Transfers as a result of probate or administration of an estate.
- De-enveloping property by transferring from a company (onshore or offshore) into the individual names of the shareholders.
Whatever the reason, it is important to take expert legal advice. There are usually tax implications arising out of such transfers including stamp duty land tax, inheritance tax and capital gains tax. As with most taxation, expert advice is needed.
Where there is a mortgage over the property the consent of the lender will be required and a deed of substituted security put in place, or there may be a remortgage.
Careful consideration should be given as to how jointly owned properties are to be held and we can advise regarding deeds of trust which will set out each person’s beneficial interest in the property.