At James & George Collie we offer a wide range of services, including the transfer of title deeds. Our team of experienced conveyancing solicitors can give you the advice you need to ensure the transfer process goes smoothly. We aim to help you avoid any unnecessary and unexpected problems.
To speak to a member of our team, contact us today on 01224 581581.
What is a transfer of title?
A transfer of title is the process of adding or removing someone from a property deed. Changing the names on the title deed is a legal process and once completed ownership changes. The previous owner’s rights to the property are removed along with their ability to control what happens with the property.
Why should I transfer the title to my property?
There are many situations in which you may want to consider a transfer of title. If you and your partner are divorcing or separating and jointly own your property, you may want to become the sole owner. To remove your partner, a transfer of title is required.
Alternatively, if you already own a property and want to add your new spouse or partner as a co-owner, a transfer of title is needed.
Can both parties use the same solicitor?
To stop a conflict of interest from arising, it is generally recommended that the transferor and the transferee of the property should seek independent legal advice. Having separate solicitors ensures that both the transferor and the transferee have someone acting in their best interest. This is especially important if the transfer is being made in return for money.
Can I transfer the title to my property if I have a mortgage?
If you are considering transferring property with a mortgage, you must obtain written consent from the lender. The lender will want to know the transfer's circumstances and perform financial checks on the proposed new owner. This is because the new owner will become liable for the mortgage, so the lender will want to be satisfied that they can maintain the payments.
What can I do if my mortgage lender does not give consent?
If your mortgage lender does not consent to the transfer, you will need to pay the mortgage off in full to proceed. This could be done by re-mortgaging the property with a new lender and using the funds to pay off the existing mortgage.
Depending on the terms of your mortgage agreement, early repayment charges may apply.
What are the tax implications of transferring the title?
Transferring or gifting property to a spouse or family member can be an effective way to minimise your tax liability. However, Capital Gains Tax may still be payable depending on who the transferee is. If you are transferring title to your spouse or civil partner for no monetary consideration, you will not have to pay any Capital Gains Tax. If you are transferring property to a child, sibling or another family member, you may have to pay Capital Gains Tax. The amount payable will depend on the value of the property, so we recommend you seek advice from a qualified tax specialist.
How much does a transfer of title cost?
The costs involved in transferring the title vary. There are mandatory costs like legal fees and registration fees, but other fees may also apply depending on the circumstances of the transfer. Land & Buildings Transaction Tax (LBTT) may be due if the transferee agrees to take on the mortgage of the property.
Are there any additional fees if I already own a property?
Additional Dwelling Supplement (ADS) may also be due if you buy a second home worth more than £40,000. The purchase of an investment property or a holiday home would incur ADS.
ADS is payable on top of LBBTT, but the amount owed will depend on the property's purchase price. Your solicitor or financial advisor will be able to tell you how much LBTT and ADS you will have to pay.
Contact our Property Solicitors in Aberdeen and Stonehaven
If you are considering a transfer of title but don’t know where to start, we are here to help. We have been providing quality service throughout the North-East of Scotland for over 175 years. We have earned ourselves a reputation for being proactive and innovative in the approach we take.
Our dedicated team of solicitors can provide advice that is easy to understand and help you make the best decision for you. For more information and advice, please contact us by telephone on 01224 581581 or complete our online contact form.