How Can I Protect my Property?

There are a number of ways we can minimise your properties exposure to the repayment of care costs. 

Many local authorities are getting much more savvy and forceful when looking at recovering the cost of care provided by enforcing the sale of the property.

Then there's the matter of Inheritance Tax which may also be a problem when a property is given asa bequest in a Will.   So let's take a look at what we can do.

So lets talk about a Property Transfer first.

You can introduce a new owner onto your property ownership so that your share of the asset value is decreased thus reducing your liabilities. You can introduce multiple additional owners if necessary and in some cases transfer the entire property to a new owner. Of course, this may not be possible if there is existing secured lending against the property.

The other option is to switch ownership from joint owners to Tenants in Common. This applied to a property owned by two people. By owning jointly you are actually owing the property at 100% as if you were one person. When we switch to Tenants in Common we then split the 100% down to 50% to each of you. This again reduces your exposure to the potential recovery of care costs in the future.

It can also be a useful tool for a situation whereby you wish to leave your portion to a third party in your will (maybe your children). This could be because you originally put more financially into the property when it was purchased.

What's Involved?

It's very easy to switch from "jointly owned" to "Tenants in Common.

Firstly, we perform a Land Registry Search to check exactly who owns your property and then we just need a few simple forms completing which are then lodged with Land Registry to amend the Title Register.

The whole process is called a "Severance of Tenancy".

We can perform the standard 50/50% split and can also accomodate an uneven split of the equity by way of a Property Trust Deed if required.

A Property Transfer is a slightly more complex procedure and we have lots of experience in implementing these.  The forms are lengthy and the identify of all parties has to be verified and submitted to Land Registry.


How much does it Cost?

Now that's a very good question, and we are glad you asked. We charge a nominal fee of just £199 to implement the Tenants in Common for you and as a guideline would take around 2/3 weeks.  If you need an uneven split of the equity then this would also involve a Property Trust Deed and the cost of this would be £249.

If you are not sure whether your property is already setup as "Tenants in Common" we can quickly perform a Land Registry search for you for a nominal fee, just to cover the costs to Land Registry and then you can decide what you want to do next. 

The Property Transfer costs £495 and this covers the processing and submission of all forms.  There would be a small additional cost of about £35 per person to cover identification verification fees.

Other Benefits

Apart from reducing any potential Inheritance Tax Liability, by switching the ownership type of your property to Tenants In Common or by performing a Property Transfer you are also protecting any equity.

We know from experience that there are many instances where equity in a property can be sought after by loan companies attempting to secure a debt against your home, or local authorities looking to seize your home to pay for care costs in later life.

By changing the way your property is owned, any claim on your partner's share of the property would exclude any equity you now own separately rather than if the property was jointly owned when the entire value of any equity could be affected.

When implementing any change in the style of property ownership we would always recommend that your will is reviewed in order to ensure that the changes are not undone by the details in your Will.

Property Transfer 

If you would like us to implement a Property Transfer to introduce new owners onto your property for just £495.00.

Property Transfer

Tenants in Common

We can change the nature of ownership from "Joint" to "Tenants in Common" for just £199.00. 

Tenants in Common

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