If you’re thinking about transferring property to your spouse, it’s not just a matter of signing an agreement between yourselves. The UK has specific legal requirements that must be followed to make the transfer valid.
Missing a step can lead to delays or even problems with ownership rights later on. Carry on reading to learn what’s legally required when transferring property between spouses.
Preparing The Transfer Deed
A valid transfer between spouses starts with a transfer deed. This is the legal document that changes ownership details at the Land Registry. It must be signed by both spouses and witnessed by an independent person.
The deed sets out the new ownership structure, whether you’re moving from sole ownership to joint names or planning to transfer property ownership to spouse entirely.
Your solicitor or conveyancer will usually draft this document to make sure it meets Land Registry requirements. Without a properly prepared transfer deed, the ownership change can’t be registered.
Registering With The Land Registry
Once the deed is signed, the next legal step is to register the change with the Land Registry. This involves submitting the transfer deed, an application form (TR1), and proof of identity for both parties. If there’s a mortgage, the lender’s consent must be included in the application.
Registration is crucial because property ownership in England and Wales is only legally recognised once the Land Registry updates its records. Without this step, the transfer is incomplete in the eyes of the law.
Lender Consent For Mortgaged Properties
If the property is subject to a mortgage, the lender must give written consent before the transfer can proceed. This is because the lender’s security is tied to the ownership of the property. Changing the names on the title without their approval could breach your mortgage agreement.
In some cases, the lender may require the existing mortgage to be changed or replaced with a new one to reflect the updated ownership. Solicitors will handle these negotiations to ensure that the transfer complies with your mortgage terms.
Stamp Duty Land Tax Requirements
Transfers between spouses are generally exempt from Capital Gains Tax, but Stamp Duty Land Tax (SDLT) can apply. Legally, SDLT is due if the transfer involves one spouse taking on part of the other’s mortgage debt.
For example, if you transfer half of a mortgaged property and your spouse assumes liability for that portion of the loan, HMRC considers it a chargeable consideration.
If the amount exceeds the SDLT threshold, tax must be paid. Solicitors will calculate whether SDLT applies and ensure that the correct forms are submitted to HMRC.
Deciding On Ownership Structure
Another legal requirement is deciding how the property will be held jointly. Couples can register as joint tenants or tenants in common.
Joint tenants means both own the property equally and it automatically passes to the surviving spouse if one dies. Tenants in common allows each to hold a specific share, which can be left to someone else in a will.
The decision must be made at the time of registration, and it has legal consequences for inheritance and future sales. Your solicitor will usually prepare a declaration of trust if tenants in common is chosen.
Final Word
Transferring property between spouses is not just a family agreement but a formal legal process. It requires a properly executed transfer deed, Land Registry registration, lender consent if a mortgage is involved, and compliance with SDLT rules where applicable. When these requirements are met, the transfer is legally secure and recognised in full under UK law.
