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Where Taxpayers and Advisers Meet

removing sisters name from mortgage

rks2018
Posts: 14
Joined: Sun Sep 16, 2018 1:27 pm

removing sisters name from mortgage

Postby rks2018 » Mon Jun 03, 2019 12:55 pm

I have 2 properties both jointly owned by me and my sister . The first one bought in 2000 I lived in for 18months , but at the time couldnt sell so mortgage co allowed me to keep and buy another , so using sisters income and mine i was able to to do so . Sister was in and out of first property , but both properties always funded by me .
The 2nd proprerty iv lived in since 2001 and still do i wish to remove my sister name from , to give my partner more security who lives with me .
I have about 90K mortgage left , and will pay it off in 18 months mostly from my pension final salary .
Should i wait till then and remove her name from land registry ? what costs will be involved ? Sister will allow name removal without any funds being transferred or paid .
The first property my sister is living in and she has 2 lodgers ,we are both registered as Self assessment for tax purposes , and when I sell that property , CGT will be payable .
I am higher rate payer and she is lower rate payer so tax is equally divided .
Other option im thinking is if I decide to move from 2nd property is to buy a larger property and use all funds to purchase from 2nd property but ownership will be just in my and partners name is that okay to do ?
Mainly just want to create more security for partner atm .
Thanks for any advice .

AGoodman
Posts: 768
Joined: Fri May 16, 2014 3:47 pm

Re: removing sisters name from mortgage

Postby AGoodman » Tue Jun 04, 2019 10:39 am

It's going to be much easier once the mortgage has gone otherwise the mortgage company will have to become involved and you may well need new mortgage terms of some kind so that sister can come off the mortgage.

If you want to cover the situation in the meantime, you and your sister can execute a short declaration of trust confirming that you both hold the property as trustees on trust for you (just you) absolutely. Then once the mortgage is paid off you can transfer the title - which should be quite easy, albeit easier if freehold rather than leasehold.

rks2018
Posts: 14
Joined: Sun Sep 16, 2018 1:27 pm

Re: removing sisters name from mortgage

Postby rks2018 » Fri Jun 07, 2019 9:21 am

Thankyou , Goodman ,
May I ask how I go about doing this please ,what costs will be involved ?do you think thanks .

AGoodman
Posts: 768
Joined: Fri May 16, 2014 3:47 pm

Re: removing sisters name from mortgage

Postby AGoodman » Fri Jun 07, 2019 3:55 pm

Ask solicitor for a simple declaration of trust. Any High Street firm should do it. I can't really quote on the cost but I suspect a few hundred pounds.


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