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Thomas Judge
Thomas Judge, Solicitor Advocate
Category: UK Law
Satisfied Customers: 32826
Experience:  Award winning lawyer with over 15 years experience
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I OWN MY HOUSE NO MORTGAGE JOINT NAMES WITH WIFE I NEED A

Customer Question

HI I OWN MY HOUSE NO MORTGAGE JOINT NAMES WITH WIFE I NEED A MORTGAGE BUT I AM TOO OLD THE HOUSE IS WORTH 350000APPOX I WANT TO PURCHASE A FREEHOLD COMMERCIAL PROP NOW CAN I PUT MY SON ON THE DEEDS AND RAISE THE MORTGAGE TAKE ME OFF DEEDS SON IS 21 ARE THERE HIDDEN TAXES ETC THANK YOU
Submitted: 8 months ago.
Category: UK Law
Expert:  Thomas Judge replied 8 months ago.

Let me see if I can help and please rate positive.

If there is to be a mortgage then you will not be able to take your son off of the mortgage unless and until it i paid. There are also further difficulties. Strictly speaking by putting simon the deeds you are transferring either all or some of the property to him. First it is important that you understand the risks of transferring property into a child’s name. The first risk is loss of control: If you transfer your property into your child’s name then you will no longer be the full legal owner of the property. Therefore, if you decide that you wish to sell your property you first have to have the agreement of the new or joint owner in order to do so. The second risk is him getting married. You may not consider this a high possibility, but they happen: You must also consider the possibility that your child may have an issue of their own, for example divorce. Your son’s soon to be ex spouse would have a legitimate claim against their estate which would also include your property. If your son had an issue with bankruptcy the property would also form part of the estate. This would potentially be claimed by any creditors seeking to realise money from their estate in order to repay monies owed to them.

The third risk is capital gains tax: This is more of an issue for your children than you but it is an issue nevertheless. Capital gains tax is charged when an asset that is classed as an investment goes up in value. If your child decides to not live in your property when you transfer it into their names it will be subject to capital gains tax when they come to sell it. This means that if the property increases in value after being transferred over to your child, they may then be liable to pay tax on it.

I hope this helps. Please rate positive

Expert:  Thomas Judge replied 8 months ago.

I hope this has answered your query. I would be grateful if you could please take a second to leave a positive rating (3, 4 or 5 stars) as that is an important part of our process and recognises the time I have spent assisting you. If you need me to clarify anything before you go - please get back to me on here and I will assist further as best as I can. Thank you