Transfer of Ownership - Remove a name from Mortgage?
Discussion
My brother and I co-own a flat and he would like to "gift" his share to me and have his name removed from the deeds and the mortgage.
1. Can this be done? An would there be any tax implications if he relinquishes his share in the property?
2. What's the likely hood that the mortgage company (Birmingham Midshires) will agree to remove just his name and leave just my name on the mortgage? I'd like to keep the current mortgage deal ideally as it's quite good.
3. If they won't agree to this, would I have to remortgage the entire property with another lender?
4. If the answer to 3 is yes, can our resident mortgage advisor please get in touch? (Sarnie is it?)
many thanks
1. Can this be done? An would there be any tax implications if he relinquishes his share in the property?
2. What's the likely hood that the mortgage company (Birmingham Midshires) will agree to remove just his name and leave just my name on the mortgage? I'd like to keep the current mortgage deal ideally as it's quite good.
3. If they won't agree to this, would I have to remortgage the entire property with another lender?
4. If the answer to 3 is yes, can our resident mortgage advisor please get in touch? (Sarnie is it?)
many thanks
[quote=RanchoGr
done? An would there be any tax implications if he relinquishes his share in the property?
2. What's the likely hood that the mortgage company (Birmingham Midshires) will agree to remove just his name and leave just my name on the mortgage? I'd like to keep the current mortgage deal ideally as it's quite good.
3. If they won't agree to this, would I have to remortgage the entire property with another lender?
4. If the answer to 3 is yes, can our resident mortgage advisor please get in touch? (Sarnie is it?)
many thanks
[/quote]
Is this a BTL property or Residential?
1) SDLT could be payable dependent on your circumstances and the figures. Best speak to a Solicitor to confirm.
2) The liklihood of BM removing you will be dependent on what risk they would be left with Eg if it's a Residential mortgage of £200k and your income is £20k a year then no chance....
3) Possibly, dependent on the out number of number 2 above
4) I'm here!!
done? An would there be any tax implications if he relinquishes his share in the property?2. What's the likely hood that the mortgage company (Birmingham Midshires) will agree to remove just his name and leave just my name on the mortgage? I'd like to keep the current mortgage deal ideally as it's quite good.
3. If they won't agree to this, would I have to remortgage the entire property with another lender?
4. If the answer to 3 is yes, can our resident mortgage advisor please get in touch? (Sarnie is it?)
many thanks
[/quote]
Is this a BTL property or Residential?
1) SDLT could be payable dependent on your circumstances and the figures. Best speak to a Solicitor to confirm.
2) The liklihood of BM removing you will be dependent on what risk they would be left with Eg if it's a Residential mortgage of £200k and your income is £20k a year then no chance....
3) Possibly, dependent on the out number of number 2 above
4) I'm here!!
Sarnie said:
Is this a BTL property or Residential?
1) SDLT could be payable dependent on your circumstances and the figures. Best speak to a Solicitor to confirm.
2) The liklihood of BM removing you will be dependent on what risk they would be left with Eg if it's a Residential mortgage of £200k and your income is £20k a year then no chance....
3) Possibly, dependent on the out number of number 2 above
4) I'm here!!
Hi, thanks for the speedy response!1) SDLT could be payable dependent on your circumstances and the figures. Best speak to a Solicitor to confirm.
2) The liklihood of BM removing you will be dependent on what risk they would be left with Eg if it's a Residential mortgage of £200k and your income is £20k a year then no chance....
3) Possibly, dependent on the out number of number 2 above
4) I'm here!!
It's a BTL, my salary definitely won't be enough to cover the mortgage in their eyes. My circumstances have a changed a lot since we bought the flat. Is it OK to PM you?
RanchoGrande said:
My brother and I co-own a flat and he would like to "gift" his share to me....
Why. Are you "gifting" him something back in exchange? Siblings don't usually go around gifting homes to each other, especially where it was bought jointly with a joint mortgage.Who knows, there may be a good explanation, but HMRC's nice big computer can spot this sort of thing from a mile away.
Similarly it's highly unlikely the bank will simply let your brother "off the hook". 90% sure they'll want his name on there until that mortgage is ended.
It depends on your Mortgage Lender. When my ex and I divorced, my Lender absolutely refused to remove my ex's name unless I went for a full-blown remortgage, and met their current lending criteria, which I couldn't. I suspect this was mainly because I was on an absolutely stonking "base + 0.48% for the lifetime of the loan" deal which was 0.98% at the current rate, and they wanted me off it.
Stamp Duty is payable on the transfer amount if it exceeds the Stamp Duty threshold, unless the transfer is the result of a Court Order as part of a divorce.
There may be a Capital Gains Tax implication, but that's mere speculation on my part.
Stamp Duty is payable on the transfer amount if it exceeds the Stamp Duty threshold, unless the transfer is the result of a Court Order as part of a divorce.
There may be a Capital Gains Tax implication, but that's mere speculation on my part.
Ozzie Osmond said:
Why. Are you "gifting" him something back in exchange? Siblings don't usually go around gifting homes to each other, especially where it was bought jointly with a joint mortgage.
Who knows, there may be a good explanation, but HMRC's nice big computer can spot this sort of thing from a mile away.
Similarly it's highly unlikely the bank will simply let your brother "off the hook". 90% sure they'll want his name on there until that mortgage is ended.
It's not often it happens, but sometimes it does. It's not an elaborate wheeze to get out of paying tax, as SDLT will be due even if it is 'gifted' due to their being a mortgage in place. Who knows, there may be a good explanation, but HMRC's nice big computer can spot this sort of thing from a mile away.
Similarly it's highly unlikely the bank will simply let your brother "off the hook". 90% sure they'll want his name on there until that mortgage is ended.
ClockworkCupcake said:
It depends on your Mortgage Lender. When my ex and I divorced, my Lender absolutely refused to remove my ex's name unless I went for a full-blown remortgage, and met their current lending criteria, which I couldn't. I suspect this was mainly because I was on an absolutely stonking "base + 0.48% for the lifetime of the loan" deal which was 0.98% at the current rate, and they wanted me off it.
Stamp Duty is payable on the transfer amount if it exceeds the Stamp Duty threshold, unless the transfer is the result of a Court Order as part of a divorce.
There may be a Capital Gains Tax implication, but that's mere speculation on my part.
I'm on a good mortgage deal which is why I wanted to retain it! Seems this is an impossibility though so I'll have to remortgage.Stamp Duty is payable on the transfer amount if it exceeds the Stamp Duty threshold, unless the transfer is the result of a Court Order as part of a divorce.
There may be a Capital Gains Tax implication, but that's mere speculation on my part.
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