Property deeds- to have or not to have?

Wednesday, May 17, 2017

The question is from Keith, 30

My parents added me to the deeds of their property about 7 years ago. I lived in the property until last year. I am now looking to purchase my own property and don't want to/can't afford to pay the additional stamp duty.

Answer by Karl Lavery CFPTM Chartered MCSI, Manse Capital

This raises more questions than answers.
What were your parents hoping to achieve by adding your name to the ownership deeds? The answer to that may impact on the right decision going forward. To avoid paying the additional Stamp Duty on your new property, you would have to come off the deeds of the current house first. Alternatively, you could pay it and reclaim it later, but to do that, you would have to come off the deeds of the property within 3 years of the purchase of the new property. Given the action your parents have taken, there is a need to understand why to be able to make an informed decision as to what is best to do going forward. One of the options, assuming it is affordable, is for you to buy them out of their home, they buy the house you want to buy, then you live in their ‘new’ house and they continue to live in the house you currently co-own, though you would have to secure your lenders agreement for that.

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