Transfer to joint names on remortgage- SDLT problems?

[david3331]

hello:

I am on the process of remortgaging to do so I have to ad to my father name on the deeds or I won't get the money to remortgaged.

Mortgage it's £250K
Value of the house it's £600+

Up to £175k No stamp duty it's paid, it does mean that I will not pay a penny to ading my father on the deeds?

What about in the future we'll have to pay for this transfer of equity even if not money its changing hands?

Also my fahter is 87 years old so I don't expect him to live for 7 years. what would it happen if my father die before 7 years?


Many thanks

[jeffrey]

hello:

I am on the process of remortgaging to do so I have to ad to my father name on the deeds or I won't get the money to remortgaged.

Mortgage it's £250K
Value of the house it's £600+

Up to £175k No stamp duty it's paid, it does mean that I will not pay a penny to ading my father on the deeds?

What about in the future we'll have to pay for this transfer of equity even if not money its changing hands?

Also my fahter is 87 years old so I don't expect him to live for 7 years. what would it happen if my father die before 7 years?

Are you giving a share, or selling a share, to your father?
Ensure that there is a Trust Deed to record each share and to regulate who can force a sale (or that neither one can).

[david3331]

Giving just in order to remorgage not selling at all

[TaxationPete]

As I have detailed to you on another Forum, why can your father not just be your 'guarantor' and not appear on the deeds. If they really, really insist then as I, Jeffrey and King-Maker have detailed, ensure you resolve legal and Beneficial title with a robust Trust Deed, or Declaration of Trust in place right from the beginning. It's good to get views from different Forums to keep a balance. Good Luck David. Regards Peter

[david3331]

The problem is that he lives in Italy so can't be a guarantor as no income or property in uk

[King_Maker]

The problem is that he lives in Italy so can't be a guarantor as no income or property in uk

So how does adding him to the deeds make any difference to the lender?

Does he have any cash deposits/bonds etc?

[TaxationPete]

It's taken a few posts to for you to tell us that. So 'benificial ownership' must be established in your 100% favour. Beware the provider does not make it joint ownership implying 50/50. What % will they accept. You appear to have good gearing at 250 against 600k so why are they being so picky, perhaps it is the market at present. I assume this is you home. ? Regards Peter

[david3331]

Thanks peter for your replay:

My bank will lend me 4.5 times my saraly not enough to £250k a few lender will accept my fathers pension in order to lend me £250K that it's the reason to put my father on the deeds otherwise not chance to get the £250K.

I don't mind puting my father on the deeds as longer as it won't affecte me to me or my father on the futrure paying stanp duty etc.

Also if he died before 7 years what happen?
I am planning to sell this house in 2011 and buy a different one could this be a problem if I put my father on the deeds.?

Sorry guys but everything it's new to me.

M.thanks for your advice

[jeffrey]

If you transfer property to joint names, it's owned jointly (of course); so, yes, that could cause problems if circumstances change but you cannot have it both ways. Ensure that each of you makes a Will- quite apart from Trust Ded, as I previously advised.

[King_Maker]

IMHO, it is essential that the relevant paperwork reflects your father's involvement as a loan "facilitator" rather than a part owner.

[Richard Webster]

Surely there can be a deed of trust whereby the property is held on trust for OP solely beneficially and OP indemnifies father for mortgage payments etc.

There shouldn't be any SDLT as Op only transferring half of a £250K debt therefore < £175K.

Also, the trust deed ought to be sufficient to negate any beneficial share for IHT purposes when father dies.