Transferring property to new owner, will it effect my tenancy

Landlord Discussion
1

I have served a s21, giving 2 months notice, and plan to transfer ownership of the house to my son and his partner asap after the tenancy ceases. The tenants have asked for a bit longer to as they hope to buy a property.

I want to be reasonable, and we could delay my son moving in, but we do want the transfer to go ahead asap in the light of uncertainty in what may happen in the coming months re CGT.

What would the implications be if the house transferred ownership, if nothing else changes for the tenants? Could we let the tenancy continue, and might there be repercussions if we did end up needing to take legal action to evict.

There is no mortgage on the property.

2

My understanding is that transfer to your Son counts as a disposal and would trigger any required capital gains tax payment from you based on the market value of the property. Once the property belongs to your Son, you could remain as landlord, but HMRC would regard the rental income as belonging to your Son and would tax him accordingly.

3

Thanks David, I’m planning to pay the CGT, i was thinking if the income still comes to me (would only be for a month or two) I would be liable for payment of tax, or wouldn’t that be the case?

4

I believe that it transfers on complation of the sale.

5

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