Transfer of ownership of property

I want to help out a relative. They need to release funds so as they can put their children through college. I've agreed to finance it by buying her husbands share of their house.


Leaving all trust issues aside (the need for 'searches', etc.), can this be done simply without fuss? There's no expectation of the property ever being sold. I/We just want to simply replace the name of one co-owner on the title of the property with another.

Is there a format we can follow to achieve this without having to involve solicitors?

Assumptions:
I have no concern as regards existing title.
I have no need for 'searches' to be carried out eg. cpo search, planning search, etc.
I have no concern as regards existing mortgages, loans, securities on the property - as there are none.

**N.B. - I know that some will warn against the assumptions I'm making but you can take it as read that I've thought this through - I'm a grown adult - if any of the above comes into play, I am happy to live with that reality.

Hi littlefinger

Joint ownership is complicated.

I don't know the legal steps necessary to buy one person's share of a house. I would imagine it would cost around €1,500 in legal fees.

You would also pay stamp duty of 1% on the value of the half of the property you buy. Then there would be legal fees and stamp duty when the sale is eventually reversed.

If it increases in value when you eventually sell it, you would be subject to CGT on the gain.

It would potentially be subject to other property taxes in the future such as NPPR, Wealth Taxes, etc.

A much better solution...

Give them a loan and secure it on the house.

In that way, you won't have tax issues such as whether it is an investment property etc.

They could theoretically be subject to gift tax on the notional interest. But A loan of €300,000 @ 1% is €3,000 well within the annual CAT limit.

It is a much simpler solution. The children might choose to redeem the loan at some later stage. The parents might choose to sell the house and redeem the loan.

You could lend them what they need now and lend them more when they need it in the future. If their finances improve, they can repay part or all of the loan.

Whichever option you choose, make a will

If the loan is still in place when you die, your beneficiary might not share the same generous attitude as you do.

Brendan

I assume that they currently own the house as joint tenants, which would be normal for married couples.
Are you happy to co-own the house as joint tenants or would tenants in common be better.

What do you want to happen your half when you die ?

This sounds crazy. Are you expecting to be repaid? How much are we talking? What is the value of the house?

Why don't the couple take out a 'home renovation' mortgage?

Or the credit union, my annual booklet from them shows me they are mad crazy to give out loans. (Costly as interest rate is high)

I can see problems here in the relationship with this financial mess.

huskerdu said:

I assume that they currently own the house as joint tenants, which would be normal for married couples.
Are you happy to co-own the house as joint tenants or would tenants in common be better.

What do you want to happen your half when you die ?

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He should be tenant in common. And needs to talk to a solicitor.

Bronte said:

This sounds crazy. Are you expecting to be repaid? How much are we talking? What is the value of the house? I can see problems here in the relationship with this financial mess.

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Thanks for all the feedback. However, I'd be grateful if we could stick to the mechanics of getting this accomplished as simply as possible - not looking at alternatives. I appreciate that ordinarily the alternatives you have all mentioned sound more logical but this is the route that needs to be taken for reasons I don't really want to get into.
Yes, it would be tenant in common. I don't need the advise of a solicitor (if it's solely to do with advising of financial pitfalls as outlined above) - unless the paperwork can't be done without their involvement. The sum involved is smaller than you'd imagine and whilst I hope to get it back, it's not the end of the world if I never did - it wouldn't have any major bearing on the life I lead ( this is a family thing).

What are the mechanics of the paperwork that's required to have this change of ownership officially recognised?

You need a solicitor to do this really. A transfer of ownership document needs to be drawn up and registered in the land registry. Technically you'd probably be able to do this yourself. It needs to be 'stamped' that's somewhere in revenue.

Why are you trying to avoid a solicitor?

I find that worrying.

littlefinger said:

The sum involved is smaller than you'd imagine and whilst I hope to get it back, it's not the end of the world if I never did - it wouldn't have any major bearing on the life I lead ( this is a family thing).

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Simple solution ... just give them the money and forget solicitors, documents, etc.

You've gotten good advice here but you're blinkered in your response to it.

As it's a family thing and getting back the money or not doesn't bother you just give them an early Christmas present of the money.

If the sum of money is small, as you say, getting tied up in paperwork and legal ownership over a family home because of it isn't worth it.

+ 1 to Brendan's suggestion also ....

I had a feeling this thread was going to go this way (hence my notice on the original post). Look - thanks for the responses but I'm not looking for alternative suggestions. I've already suggested that I have my reasons for that. You don't have the full picture and it's not something that I want to get into on a public forum.

If anyone can just stick to the practicalites/mechanics in terms of the paperwork necessary to transfer part ownership, then post below. Otherwise, I guess I'll figure it out for myself through other sources.

Hi finger

It's a straightforward transaction but you do need a solicitor to do the transaction. In fact, I suspect that each of you will need a solicitor.

Brendan