How To Transfer Property into Joint Names
There are many reasons why someone might think about putting a property into joint names. You might be getting married, planning your family’s future, or just wanting your new partner’s name on the deeds. However, there are a few things you need to understand about the implications of this kind of move.
For instance, property transfers between family members often result in unexpected tax bills underlining just how important it is to understand all of the ins and outs, or at least work with someone who does.
In this article, we look at how transferring a property into joint names actually works, the main ways it’s done, and what to think about before making a commitment.
What is the best way to transfer property title between family members?
When families change who owns a property, it’s rarely done on a whim. Typically, it’s because of a major family event or perhaps to help a child get a foothold on the housing ladder. The key is to protect everyone involved, as it’s far more meaningful than just adding a name to a document.
In most family situations, ownership is changed through what’s known as a transfer of equity, which allows the legal title to be updated without selling the property or moving out. A transfer of equity is often used where:
- A spouse or partner is being added to the title after a civil partnership or marriage
- A long-term partner is added to reflect shared ownership
- A family member is added for estate planning reasons
When there’s a mortgage in place, the lender will usually need to agree to the change. There are also legal checks to ensure everyone understands the rights they’re gaining or giving up. That’s important because once ownership is shared, it can be very difficult to undo later.
This is why people often ask whether they need to sell their home to change ownership. In most cases, you don’t, but there are still legal and Land Registry costs involved, which vary depending on how the transfer is structured.
What is a disadvantage of joint ownership?
Joint ownership can seem like a neat solution for what you want to achieve, but there are also legal ramifications that aren’t always obvious. You see, once a property is jointly owned, all decisions are shared, even if circumstances change later.
Some of the main disadvantages of joint ownership include:
- You usually need the agreement of all owners to sell or remortgage
- One owner’s financial problems can affect the whole property
- Relationship breakdowns can make ownership difficult to untangle
- Joint ownership can complicate future inheritance plans
- Disputes are harder to resolve once rights are shared
Another issue is that joint ownership isn’t a single arrangement. Properties can be held as joint tenants or tenants in common, and each comes with different implications for control, inheritance, and what happens if one owner dies.
The way ownership is split matters more than many people realise. If shares aren’t meant to be equal, getting it wrong at the outset can cause real issues later on, especially if the property is sold or circumstances change.
Can I transfer property to a family member tax-free in the UK?
You can transfer property to someone in your family without facing a CGT, SDLT, or even an IHT bill but only in certain instances. The key factor isn’t the family relationship; it’s whether anything of value changes hands as part of the transfer.
A transfer may be tax-free when:
- The property (or share) is gifted with no money paid
- There is no mortgage attached to the share being transferred
- The property is the owner’s main residence
- No financial consideration is involved in the transfer
If the transfer also involves changing who is responsible for the mortgage, lender approval is usually required. Our article on transferring a mortgage to a family member outlines what’s involved and why this needs to be handled carefully.
Need help transferring property into joint names?
If you’re thinking about adding someone to your deeds, the important thing is not just whether it can be done, but how it should be done. The best approach typically depends on tax, existing mortgages, and your long-term plans for the property, and with expert guidance, you can avoid the common pitfalls.
At SAM Conveyancing, we deal with the practical side of transferring ownership, and it’s a process we’re part of every day. It’s what we do. With us in your corner, you’ll know exactly what to expect and when.
Simply get in touch with us today, and we’ll provide the clarity you’re looking for, even if you don’t want to proceed straight away.
Contact us to request a free callback or an email from our transfer team. We'll answer your queries whether you're adding or removing someone to or from the legal title.
We can also help if you want to assign the beneficial, not legal ownership, for income and tax purposes.
There's no obligation to instruct. We'll provide a free, fixed-fee quote for our best-value service to meet your needs.
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Caragh is an excellent writer and copy editor of books, news articles and editorials. She has written extensively for SAM for a variety of conveyancing, survey, property law and mortgage-related articles.
Andrew started his career in 2000 working within conveyancing solicitor firms and grew hands-on knowledge of a wide variety of conveyancing challenges and solutions. After helping in excess of 50,000 clients in his career, he uses all this experience within his article writing for SAM, mainstream media and his self published book How to Buy a House Without Killing Anyone.
