Deed of Gift Solicitors in Stockport and Manchester

We start by confirming exactly what is being gifted and why. Is it a gifted deposit, a share of a home, or the whole property? We also clarify whether the gift is unconditional, whether anyone will remain living at the property, and whether there are any expectations about future repayment or ownership. This is the stage where we ensure a Deed of Gift is the right document, or whether you also need a declaration of trust or other supporting paperwork.

If the gift involves a property interest, we review the title to check the legal ownership, restrictions, charges, and any issues that could affect the transfer. If the property is leasehold, we also consider lease requirements and whether any consents may be needed. This stage ensures the gift can legally be made in the way you intend.

Where there is a mortgage, we check what the lender will require. Many lenders need formal confirmation that a gifted deposit is non-repayable and that the donor will not have any beneficial interest in the property. For gifts of equity or transfers of ownership, lender consent is often essential and a remortgage or redemption may be required. Getting this right early avoids delays and prevents the paperwork contradicting the mortgage conditions.

If money is being gifted, we carry out the necessary anti-money laundering and source of funds checks on the donor. This is a standard part of residential conveyancing and is often required by the lender as well as by professional regulations. Completing these checks promptly helps keep the purchase or transfer moving.

We draft the Deed of Gift so it accurately reflects the arrangement. Typically, it will identify the property (or the gifted sum), confirm what share is being gifted, confirm the donor’s intention for it to be an outright gift, and state whether it is unconditional. Where relevant, it will also deal with practical points such as the effective date and whether the donor will continue living at the property, and on what basis.

A Deed of Gift must be signed in the correct legal format to be valid. We guide you through execution requirements, including witnessing, to ensure the document is properly completed and can be relied upon if it is ever needed in future.

If the gift involves transferring a property or a share, the Deed of Gift sits alongside the conveyancing transfer documents and the completion process. After completion, we submit the application to HM Land Registry to register the new ownership, deal with any lender requirements, and ensure the title record reflects what has happened.

Once everything is completed, we provide confirmation of what has been done and ensure the signed Deed of Gift is retained with the transaction paperwork. This creates a clear record you can refer back to later, for example if the property is sold, if there is a change in family circumstances, or if the position is queried during probate or a future transaction.

Gifting a property can carry risks around mortgages and lender consent, as you often cannot transfer a mortgaged home without the lender’s approval or refinancing. There can also be tax and funding implications, including inheritance tax issues if the donor continues living there, potential SDLT if mortgage debt is taken on, and local authority scrutiny if care fees are needed later. Finally, there are practical family risks if the recipient later divorces, becomes insolvent, or disagreements arise about whether the “gift” was truly unconditional.

Yes, you can continue living in a property after gifting it, but it needs to be planned and documented properly. If you remain in the home rent-free, it can trigger inheritance tax issues (a “gift with reservation of benefit”), and it may also raise lender and future dispute risks, so it’s common to put a clear written arrangement in place (such as a licence to occupy, or in some cases a formal tenancy with market rent). Taking advice before the transfer helps ensure the gift achieves what you intend without creating avoidable tax or practical problems.

The cost of a Deed of Gift depends on what you are gifting and how complex the wider transaction is. A straightforward gifted deposit Deed of Gift/letter is usually less expensive than a Deed of Gift linked to a transfer of equity or an outright property transfer, where we also need to review the title, deal with lender requirements, and handle HM Land Registry formalities. The best way to get an accurate figure is to share whether it’s a deposit gift, a share of a property, or the whole home (and whether there’s a mortgage), and we can provide a clear quote and explain exactly what is included.

In most cases, the Deed of Gift itself is not registered at HM Land Registry, what gets registered is the change of ownership (or share of ownership) if you are transferring a property interest. That is done through the transfer deed (usually a TR1) and the Land Registry application, which updates the title register to show the new legal owner(s).

If the gift is money only (for example, a gifted deposit), there is nothing to register at HM Land Registry because no ownership is being transferred; the deed/letter is kept with the conveyancing file and provided to the lender if required.

A transfer of equity is the legal process that actually changes who owns a property (or the shares in it), for example adding/removing a spouse or transferring someone’s share, and it’s completed through the conveyancing transfer documents and, where applicable, lender consent and Land Registry registration.

A Deed of Gift doesn’t change ownership by itself; it’s a supporting deed that records the intention behind the transaction, confirming that the transfer (or funds/equity) is being given outright, voluntarily, and without repayment or “hidden” consideration. In practice, you often have both where someone is gifting their share: the transfer of equity does the legal change, and the Deed of Gift explains the basis on which it’s being done.

You can gift your property to any person or organisation, including a spouse or civil partner, an adult child, another relative, a friend, or (in some cases) a trust or charity. In practice, who you can gift it to may be affected by the legal and financial set-up of the property, for example, whether there is a mortgage (lender consent is usually required), whether you own it jointly with someone else, and whether there are any restrictions on the title. It’s also important to make sure the transfer reflects your intentions properly, particularly where you plan to keep living in the property, or where you want to protect the gift from relationship or insolvency risks.

Using a Deed of Gift has several practical advantages in residential property matters because it puts the arrangement in clear, legally robust terms. It provides strong written evidence that the money or property share is being given outright and non-repayable, which can help satisfy mortgage lender requirements and reduce the scope for later disagreements within the family about whether the gift was really a loan or came with conditions. It can also be valuable if the arrangement is later questioned during a sale, probate, separation, or insolvency, because it explains the basis of the gift alongside the conveyancing paperwork.

Yes, you can use a Deed of Gift where there is a mortgage, but you usually cannot complete the gift of the property (or a share of it) without the lender’s consent. In many cases the lender will require a transfer of equity process, and sometimes a remortgage or full redemption, because the lender needs to be satisfied their security is protected and that any new owner is acceptable to them.

A Deed of Gift is therefore typically used alongside the lender’s requirements and the conveyancing transfer documents, confirming (where appropriate) that any equity being transferred is a genuine gift and setting out the agreed basis of the arrangement. Your solicitor will also check whether the recipient is taking on any mortgage responsibility, as that can affect both the lender’s position and potential tax treatment.

You don’t legally have to use a solicitor to sign a Deed of Gift, but in residential property matters it is usually strongly recommended. A solicitor will make sure the wording reflects the true arrangement, ties in properly with the conveyancing documents and any mortgage lender requirements, and that it is executed correctly as a deed so it can be relied on later. It is especially important to take advice where there is a mortgage, a transfer of a share in the property, or where the donor will continue living in the home, because the risks and knock-on effects can be significant if the paperwork is handled incorrectly.

If you gift your property during your lifetime, it is usually treated as a potentially exempt transfer (PET) for inheritance tax purposes, meaning there is normally no IHT to pay if you survive for 7 years after making the gift. If you die within those 7 years, some or all of the gift’s value can be brought into the IHT calculation (with the amount potentially reducing over time depending on when the gift was made).

However, if you gift the home but continue to live in it rent-free (or otherwise keep a benefit), HMRC can treat it as a gift with reservation of benefit, meaning the property may still be treated as part of your estate for IHT purposes despite the transfer.