Sun 10 Apr 2016
Your Legal Questions Answered by Fariz Uvais
Fariz Uvais is a consultant in the law firm Harper & Odell. Write in and ask your legal questions. Fariz will try and answer your questions in Palmers Green LIFE each month. Send your questions to Harper & Odell, 61-63 St John Street, London EC1M 4AN or by email to firstname.lastname@example.org.
My mother owns the property that my wife and I are living in, and now she has decided to give us a 50% share in the property and retain the remaining 50%, but with the intention of leaving that share to my sister in her Will. The house is still on mortgage. How should we start the process?
First, your mother should contact the mortgage provider to enquire whether they would consent to the ownership of the property being divided. Unless the mortgage provider agrees, nothing can be done (short of re-mortgaging the property with a more amenable provider, or paying off the mortgage in full). Even if the mortgage provider agrees, it would most probably be subject to several conditions being fulï¬lled.
Thereafter, you will need the assistance of a conveyancer to change the title to one of “tenants in common”, with your mother and you sharing 50%-50% of the title to the property. This is achieved by ï¬ling the relevant papers with the Land Registry. Once the Land Registry records have been duly updated, your mother should have a new Will prepared (or an amendment made to her existing Will) to leave her 50% share of the property to your sister.
You should also be aware that there may be inheritance tax and capital gains tax issues which should be considered and appropriate advice taken before proceeding with this plan.
Disclaimer: The information provided in this article should not be construed as legal advice and the information is offered for information purposes only. You should always seek advice from an appropriately qualified solicitor on any specific legal enquiry.
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