Legal Q&A: How do I share the ownership of my holiday home in Cornwall with my husband?
Question: I own a holiday home in Cornwall, which was left to me by my mother many years ago. I would like my husband to share the ownership of this cottage with me, as we share everything else. The property needs a bit of work — but how do I go about sharing ownership with him first?
Answer: Decide whether you wish to own the holiday home in equal shares as beneficial joint tenants, or as tenants in common in either equal or unequal shares.
If held as tenants in common, on death the property will pass according to the terms of your Wills or on intestacy if you do not have Wills.
However, if you hold the property as beneficial joint tenants, on the death of the first of you the flat will pass automatically to the survivor.
You can transfer a share in the property to your husband by way of a document called a TR1.
In this document, you as the transferor would transfer the equity in the property to you and your husband as transferees.
You may wish to instruct a solicitor to draft the TR1 for you. No Capital Gains Tax is payable on the transfer — although it may be payable on a future disposition by you and your husband.
Stamp duty land tax is not payable as you are gifting part of your property to your husband and you will receive no monetary consideration.
The transfer should be registered at HM Land Registry.
These answers can only be a very brief commentary on the issues raised and should not be relied on as legal advice. No liability is accepted for such reliance. If you have similar issues, you should obtain advice from a solicitor.
If you have a question for Fiona McNulty, please email firstname.lastname@example.org or write to Legal Solutions, Homes & Property, Evening Standard, 2 Derry Street, W8 5EE. Questions cannot be answered individually, but we will try to feature them here. Fiona McNulty is a solicitor specialising in residential property.