Can You Sell Half of Your Property to Your Son or Daughter?

Answered on 5 March 2024 by

Can I sell part of my house to a family member like my son or daughter whilst also remaining on the title deeds?

Nicholas Mendes

Can You Sell Half Your House?

Yes it is possible to sell half your house but there are certain caveats regarding what you can and can’t do.

For example, you cannot sell half of your house in order to come off the mortgage but stay on the title deeds. A mortgage lender won’t accept this because if you’re not on the mortgage, but are on the title deeds, then the lender would be unable to gain possession of the property in the event that the mortgage was defaulted on.

On the other hand, you can have your child added onto the mortgage and title deeds so they’re a co-owner and co-borrower with you. Or alternatively, you can remortgage onto a new product with your son or daughter.

What Are the Options?

Your main options are to apply for a transfer of equity, where you add your son or daughter to the mortgage and deeds, and stay on both yourself. You can either approach your existing lender for permission or can look to remortgage to a new lender. The lender will look at the overall affordability of the loan and will take into consideration the level of income your son or daughter earns, as well as your current income and future plans.

As part of the transfer you would need to take legal advice as to whether you should get the ownership of property as tenants in common with a defined split between you and your child to be determined, or as joint ownership.

The other option would be to sell the property to your son at below market value and retain a legal interest in the property. This would be a concessionary sale where you gift equity in the property to the family member so they can afford to buy it on a smaller mortgage. You would not be on the title deeds in this scenario but could still retain a legal interest in the property. You would need to take legal advice on the best way to do this and arrange the protection of your retained share. Not every lender will look at this type of scenario, however as John Charcol is an independent, whole of market broker, we have excellent relationships with those lenders who should be able to help.


There are legal and financial considerations involved here, and the process should be carried out formally to ensure clarity and protect the interests of all parties involved. Here are some key points to consider when selling part or whole of your property to a family member.

  1. Legal Formalities
    • The sale of a portion of your property involves legal procedures. It's important to consult with a legal professional or conveyancer to handle the documentation, title transfer, and other legal aspects of the transaction
  2. Valuation
    • A fair valuation of the property should be conducted to determine the price for the portion being sold. This ensures that the transaction is fair for both parties.
  3. Mortgage Considerations
    • If there is an existing mortgage on the property, you may need to inform the lender and obtain their consent for the sale. The lender may have specific conditions or requirements related to such transactions, especially in situations where the perspective buyer will be added to the mortgage and title deeds
  4. Tax Implications
    • Selling a portion of your property may have tax implications. Capital Gains Tax, Stamp Duty, and other taxes may apply, and it's important to understand the financial implications before proceeding. Seeking advice from a conveyancer and tax adviser is recommended
  5. Legal Ownership Agreement
    • It's recommended to have a legal ownership agreement in place outlining the rights and responsibilities of each co-owner. This agreement can address issues such as property usage, maintenance costs, and what happens if one party wants to sell their share in the future
  6. Future Sale Considerations
    • Clarify what happens if either party wishes to sell their share in the future. Having a clear agreement on how the property can be sold or how one party can buy out the other is essential to avoid disputes
  7. Estate Planning
    • Co-ownership may affect your estate planning. Ensure that your will is updated to reflect the co-ownership arrangement and how the property should be handled in the event of your passing
  8. Independent Legal Advice
    • Both parties should consider seeking independent legal advice to ensure that their interests are protected. This is particularly important given the financial and legal complexities involved in co-ownership.

Before proceeding with the sale of half of your property to your son, daughter or any family member, it's crucial to consult with a solicitor to navigate the process smoothly and address any potential challenges.

It would be worthwhile to discuss your enquiry in more detail, and if you would like to do so, then please submit an enquiry and we'll arrange for you to speak to one of our consultants.

Ask The Mortgage Experts answers are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them. We recommend you seek professional advice with regard to any of these topics where appropriate.