Transfer of Name in Blt Mortguage before divorce
Discussion
Hi Me and husband going through a divorce.We have 2 properties.One with mortguage which I am keeping.What are the chances of conscent frim lender with a 36k pending mortguage amount on it.And what are the costs involved.Also do I have to pay CGT on withdrawing my share from the freehold rented property he is keeping.
Sorry yes I meant BTL i am giving away my share from the freehold rental property to him and he is from this other one with mortguage.Basically I want to keep our residence which has got an outstanding mortguage because my son is still in his Alevels and we cant move and get the Rental property with mortguage and in lieu he will get the freehold rental property and 20 k from me.which I am infact taking as a loan from my daughter.Its not fair I guess but I am too stressed to fight hence agreed to his condition but dont know whether it is easy to remove his names frim these 2 properties as my income is low and whether there is any costs involved and how much
Eric Mc said:
Are you getting a consideration (i.e. money or money's worth) from the relinquishing of your share in the buy to let?
Is this relevant? Transfers between spouses are CGT exempt so provided everything is moved prior to the divorce there will be no CGT. And any consideration would just be treated as transfer of cash between spouses. Or am I missing something?madhumita_69 said:
Sorry yes I meant BTL i am giving away my share from the freehold rental property to him and he is from this other one with mortguage.Basically I want to keep our residence which has got an outstanding mortguage because my son is still in his Alevels and we cant move and get the Rental property with mortguage and in lieu he will get the freehold rental property and 20 k from me.which I am infact taking as a loan from my daughter.Its not fair I guess but I am too stressed to fight hence agreed to his condition but dont know whether it is easy to remove his names frim these 2 properties as my income is low and whether there is any costs involved and how much
Removing him from the property deeds is fairly straightforward via a solicitor but if removing him from the mortgages your lender will need to be satisfied that you can afford them on your own. You should speak to a mortgage adviser about it.madhumita_69 said:
Hi Me and husband going through a divorce.We have 2 properties.One with mortguage which I am keeping.What are the chances of conscent frim lender with a 36k pending mortguage amount on it.And what are the costs involved.Also do I have to pay CGT on withdrawing my share from the freehold rented property he is keeping.
In terms of "consent from Lender" do you have sufficient income (excluding the rent on the mortgaged poperty) to pay off the mortgage?AndrewT1275 said:
Is this relevant? Transfers between spouses are CGT exempt so provided everything is moved prior to the divorce there will be no CGT. And any consideration would just be treated as transfer of cash between spouses. Or am I missing something?
Timing is everything. The OP needs to seek professional advice.Transfers between spouses are exempt from Inheritance Tax or Gift Tax. SALES between spouses are not exempted from Capital Gains Tax automatically.
https://www.gov.uk/capital-gains-tax/gifts
And No I am on low income but he suggested to put my daughters name who qualifies as a doctor next year and it should be fine but the btl property has got rent voming in of 500 with a mortguage of 270 will that be enough for bank to transfer the name in my name or would they still consider my income for that property.More than 60 % is paid of from the purchase price of the property aswel.
madhumita_69 said:
And No I am on low income but he suggested to put my daughters name who qualifies as a doctor next year and it should be fine but the btl property has got rent voming in of 500 with a mortguage of 270 will that be enough for bank to transfer the name in my name or would they still consider my income for that property.More than 60 % is paid of from the purchase price of the property aswel.
You need proper advice. The individual with the primary income is the party who needs to be left with the mortgage for very obvious reasons. What you have outlined so far looks very much like you’re screwing yourself and your child over.
Gassing Station | Finance | Top of Page | What's New | My Stuff