Transfer Property Following Breakdown of a Relationship

January 29th, 2022
Chloe Beevers
Property

How to Transfer Property Following Breakdown of a Relationship?

When a relationship breaks down, you will need to decide what will happen to the property. The options available to you will depend on whether you are unmarried, married, or in a civil partnership, and if you own your home.

In this article, our experienced Head of Property, Mark Laird explains how to transfer a property following the breakdown of a relationship.

What Happens to the Property Following Breakdown of a Relationship?

Following the breakdown of a relationship, separating couples may be concerned what will happen to the property. In many cases, one owner will take on the other owner’s share of the property.

If you are considering taking on the other person’s share of the property following the breakdown of your relationship, there are a few considerations you should consider:

Mortgage lender consent – If you have a mortgage on the property, which you will not be paying off, there is usually a condition of the loan that states you cannot transfer the property without the lender’s consent. This alludes you must obtain your mortgage lender’s approval to transfer the property into your sole name. Your lender will reassess your financial position and will only consent to transferring the property if you meet their lending criteria.
Payment for the other owner’s share in the property – For divorcing couples, the Court will make an Order for the division of the material assets. This will include what happens to the family home, whether it will be sold or transferred to one of the owners. In amicable separations, the parties may reach an agreement where one person buys the other person’s share.
Insolvency provisions – If the share in the property is being gifted, or if you are paying less than the share of the property is work, then you must check the person transferring you their share in the property is solvent. HM Revenue has the power to set aside a transfer not made for full market value if they believe the transfer was made to put the property out of the reach of creditors, which could have an impact when you come to sell the property.
Registering the transfer – To become the sole legal owner of the property. You must register the transfer with the Land Registry. Please note, signing a Transfer Deed will not make you the legal owner of the property.
Stamp Duty Land Tax – If you are buying the other person’s share in your property, then Stamp Duty Land Tax applies just as it would when you’re buying property. Providing the amount you are paying for the property is over £125,000, you will have to pay tax. Please note, if you are taking sole responsibility for a mortgage previously in joint names, this forms part of the purchase price as well as any cash payment.

If you wish to transfer the property following the breakdown of a relationship, speak to a member of our residential property team on 033 3344 9609 or simply email [email protected] with your request.

Residential Property & Conveyancing Solicitors

Morrish Solicitors is a long-established law firm in West Yorkshire providing a range of legal services both regionally and nationally. We have a friendly and professional residential property and conveyancing team who can assist you with your transaction. Our comprehensive conveyancing and property services include: