Transferring property to family members

[JoandJelly]

Firstly I realise a lawyer should be consulted on this subject but could anybody give me an insight into how this works in reality please? I understand the tax position differs from a sale but don't know the specifics. Any info gratefully received. Thanks.

[karmels]

All you need is a notar, he will tell you everything you need to know about the transfer. This is a lot cheaper than going to a solicitor. The family member needs to be present to sign the forms.

[jofra]

We did this (transferring to son) and it was fairly painless - in our case, we did use an advocat (solicitor) rather than a notar. As swallows, we started in October 2017, after which we came home. We already had our koçan, so all that was necessary was for our son to obtain a police report here in the UK, forward it to the advocat, who then obtained the 'Permission to purchase' - this came through in March 2018 - and then the advocat applied for and received the new koçan by July 2018, and we collected it on our next visit. Our son was only required to be present on the first occasion/application.
Hope this is of some help.

[ozbey]

Jofra, very interesting, thanks for posting.

Did it have to be treated as a sale - i.e. money paid?
Were there any tax implications?
Were there any other financial payments that had to be made?

[JoandJelly]

Thanks Jofra, I am also interested in the questions posed by Ozbey if you wouldn't mind.

[pc4854]

Further to this topic, We have a property there split 50-50 between my wife and our daughter. There are two kojans one in each name. The question is this, my wife's 50% is left in her Cyprus Will to our son when she departs this world. Will he or our daughter have to get permission to purchase this property which is owned or inherited?

[jofra]

Did it have to be treated as a sale - i.e. money paid?
No; purely as transfer of ownership of property
Were there any tax implications?
None mentioned (remember I'm a swallow); however as UK resident, I'm guessing UK inheritance tax might kick in if I shuffle off in less than seven years after the transfer...
Were there any other financial payments that had to be made?
Yes, based on the value of the property - the valuations forms were submitted to the Land Registry who calculate the transfer charges payable for the transfer of title deed. I can't remember for certain, but I think it is a percentage of the purchase price you have paid; in our case NOT the original price when the property was first built and sold - we were the second owners of the property. Other payments - only the advocat's fees (but up-to-date receipts for council tax payment are also required).
As said, after the first meeting with the advocat, we were in the UK and everything was done by the advocat, who regularly updated us by email, and all we had to do was to collect the new koçan when we next came over!

pc4854 -
"Will he or our daughter have to get permission to purchase this property which is owned or inherited?"
I don't know, but I suspect they will have to, as my son had to do so - BUT that was for a transfer - perhaps inheriting property is different? A notar or advocat would know for certain.

[ozbey]

Many thanks for the answers Jofra.

[pc4854]

Thanks Jofra

[JoandJelly]

Thanks jofra that's very helpful.