Can I add my daughter as a landlord to an existing tenancy agreement?

Can I add my daughter as a landlord to an existing tenancy agreement?

11:28 AM, 6th February 2023, About 2 years ago 12

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Hello, my daughter part owns a rental property with me, but I have always been listed as the landlord on Tenancy agreements (she was a minor when the property was bought)

My daughter wants to buy the property from me and move into it as her main home (she currently rents) and I served the tenant a Section 21 mid January, with a leave date of 31st March 2023. We would like the transfer to go through before the end of the tax year, for obvious reasons, but the tenant is now indicating that they need more time to find another property. If my daughter becomes the legal owner before the tenant moves out, I assume the tenancy agreement will be void. Is there any way I can add my daughter to the existing tenancy agreement (as a landlord) prior to this (currently a periodic tenancy), as she does part own it, thus avoiding a major problem – where there is no tenancy agreement in place? Or, should I just get a new tenancy agreement drawn up as soon as possible, with my daughter named as the landlord, issue all the necessary paperwork and a new Section 21?

Also, my daughter part owns another rental property and we have been told that she will therefore be liable to pay 3% SDLT on her purchase, even though this will be her home and will no longer be rented out. I thought that the extra 3% SDLT did not apply to your main residence

Thank you,

Sally


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SCP

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18:56 PM, 7th February 2023, About 2 years ago

Reply to the comment left by Ian Narbeth at 07/02/2023 - 11:32
Hi
The transaction is more complex than indicated.
For Income tax, since the parent provided the purchase moneys, the income belongs to the parent in its entirety.
When purchased, how was the daughter's beneficial interest as true joint owner evidenced?
Is there a trust deed?
Is there a restriction placed at the Land Registry that any sale proceeds must be paid to a trust corporation or to at least two trustees - to protect your daughter while an infant (in the legal sense)?
When your daughter is no longer an infant, she would become a joint owner fully capable of exercising all rights over the property, just as you, as a joint owner, have exercised full rights over the property.
Each true joint owner can enjoys all rights over the property - unless there was partition (which is rare these days).

Sally

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11:08 AM, 8th February 2023, About 2 years ago

Reply to the comment left by SCP at 07/02/2023 - 18:56
I didn't provide the purchase money, her contribution was left to her by a grandparent. A deed of trust was drawn up and HMRC informed of her part ownership. The trust document does indicate what part should be paid to her when the property is sold.

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