Transfer of equity to my father Do we have to pay Stamp duty

by **david3331** on Tue Feb 17, 2009 11:24 am

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 £500+
Up to £175k No stamp duty it's paid,
What about in the future we'll have to pay for this transfer of equity even if not money its changing hands?

Many thanks

by **Peter D** on Tue Feb 17, 2009 11:37 am

Unless you are pro-active in this matter your Dad will be a joint owner of the property and become liable to CGT on the disposal of the property in the future. Mortgage companies are good at not telling you this as they do not care. Your Dad should be a 'Guarantor' only and not an owner, or a solicitor draws up a statement of 'Beneficial Ownership' and 'Legal Ownership'. Discuss this face to face with a well versed legal adviser and present the facts, this will save you a lot of grieve in the future. I am assuming the property is your home and your father does not live there as well. Regards Peter

by **maths** on Tue Feb 17, 2009 4:08 pm

If you do not intend for your father to take a beneficial interest in the property following the remortgage (although by going on the deeds he will acquire a legal interest in the property) then a declaration of trust should be executed confirming that as joint legal owners the beneficial interest in the property is held 100% you and 0% your father.

This solves any future possible adverse CGT issues.

No SDLT should be payable.