From time-to-time, conveyancers get involved when properties need to be transferred but no open market sale is involved:
• An Assent is a transfer of property from a deceased person to a new owner (being a beneficiary) of an estate by the Executors / Personal Representatives.
• A Transfer of Equity is the process by which someone is either added or removed from ownership of a Property.
Assent
When someone dies, they remain on the title of any property they owned. To remove the person from the title the Land Registry need evidence they have passed away.
• If the property is jointly owned (Joint Tenancy) and one person dies, ownership automatically passes to the surviving owner(s). You can apply to the Land Registry to update the title if it is registered. If it is not registered a death certificate needs to be placed with the property deeds.
• If there are no surviving owners (or the late owner was a Tenant in Common), then appointed Executor(s) / Personal Representative(s) would need to deal with the property in accordance with a Grant of Probate or Letters of Administration. Once they have the relevant document then will have legal authority to deal with the property including selling it, transferring it or assenting it.
An Assent will not be for any money/value. If a beneficiary makes any payment for the property, this would be seen as a Transfer of Equity (see below) or a Purchase since the payment needs to be noted in the paperwork.
If you are in need of assistance with an Assent, then the Conveyancing Team at Pardoes are able to help you.
Transfer of Equity
A Transfer of Equity may happen for many reasons including:
• Owning a property on your own and wishing to add someone on to the title
• Transferring a property due to divorce, dissolution of a civil partnership or relationship breakdown
• Parents transferring property to a child by way of a gift
• A beneficiary is making a payment for a property (so an Assent is not suitable)
In these cases, no “open market” sale is involved.
Transfers of Equity can take place for money (known as “consideration”) or not.
There are other aspects which will need to be considered such as:
• Lender Consent – If the property is mortgaged then lender consent will be needed. The lender will need to be satisfied that the new owners/ remaining owner is able to afford the mortgage.
• Tax Implications – You should seek separate advice from a financial adviser regarding any potential tax implications. Also, we would refer you to our Private Client team for further advice if we believe their could be implications particularly if a property is being gifted.
• Stamp Duty – Stamp Duty is calculated based on the Consideration (as discussed above). If the consideration is above the Stamp Duty threshold, then tax will be payable. Regardless, if the amount is over £40,000 a Return will need to be submitted to HMRC. Consideration also needs to be given to HMRC’s rules in connection with “Additional Property”. You don’t pay Stamp Duty if you transfer the property because of divorce or the dissolution of a civil partnership under a separation agreement or court order.
If you need help with a Transfer of a Property, then the Conveyancing Team at Pardoes have expertise in preparing and executing Transfer Deeds whilst taking into consideration the points raised above.
Please feel free to contact us to discuss and we would be happy to provide you with a quote for our legal fees.
PardoesSolicitors