Help Please!!! Changing House Ownership.

Showgirl1

I bought a leasehold property with my sister a few years ago, on an interest only mortgage. I paid the deposit and all the house fees but we agreed that the house would be split 60%:40% in my favour.

I have been making most of the mortgage payments etc as she has run into money problems and it has resulted in a few late payments and damage to my previously good credit rating. As a result we've decided to try and separate our finances to give my credit rating a chance to recover, so we're closing our joint account and we want to transfer our property into my name only, as I'm getting married next year and she'll move out.

What is the most cost effective way of doing this and are there any CGT consequences? Can anyone help??

Thanks!

p00hsticks

Showgirl1 wrote: »

What is the most cost effective way of doing this and are there any CGT consequences?

Are both you and your sister living in the house at the moment ? If so then there shouldn't be any CGT implications. I think your main problem is probably going to be pursuading the mortgage company that you can afford the whole mortgage by yourself - at the moment they have two of you to chase if there are late payments, and they'll probably be reluctant to agree to reducing it to just one ....

Showgirl1

We are both still living in the house and I spoke to the mortgage company before and I think they were willing to approve it but I don't know whether I need to get solicitors involved and pay fees to them or whether we can just agree it with the mortgage company.

getmore4less

how big is the mortgage?
how much is the house worth?
how much do you earn?


The inhouse solicitor that can do the mortgage might not be happy if the other party does not take independant advice.

bluejulie

I’m in a similar situation.
My ex lives in a flat we bought together. The mortgage is £70000 and he’s been only paying the interest for the last 4 years.
He had refused to move out even though I paid £55000 in deposit when buying the property.
I have given up and just want my name to be removed from the account (I’m tired of getting unpaid bills) so I can move on and probably think of buying a property in the future.
He promised he’ll complete a change of borrower’s application but hasn’t done it yet as his solicitor’s fee is around £1500 and he doesn’t have the money.
Is there a way out?

Thrugelmir

boo-boo wrote: »

I’m in a similar situation.
My ex lives in a flat we bought together. The mortgage is £70000 and he’s been only paying the interest for the last 4 years.
He had refused to move out even though I paid £55000 in deposit when buying the property.
I have given up and just want my name to be removed from the account (I’m tired of getting unpaid bills) so I can move on and probably think of buying a property in the future.
He promised he’ll complete a change of borrower’s application but hasn’t done it yet as his solicitor’s fee is around £1500 and he doesn’t have the money.
Is there a way out?

Sell the property and pay him off.

bluejulie

I can't sell the property as he doesn't agree.
I don't even live there.

getmore4less

boo-boo wrote: »

I can't sell the property as he doesn't agree.
I don't even live there.

whats the place worth now?

Why just give up £55k force a sale or move back in.

what unpaid bills are you getting, nothing but the mortgage and insurance should be in your name.

bluejulie

getmore4less wrote: »

whats the place worth now?

Why just give up £55k force a sale or move back in.

what unpaid bills are you getting, nothing but the mortgage and insurance should be in your name.

He only pays the interest but somitimes misses the payments and you are right it's the mortgage and insurance in my name.
He doesn't want to move out or sell and a solicitor expalined that I can't do anything either.

getmore4less

boo-boo wrote: »

He only pays the interest but somitimes misses the payments and you are right it's the mortgage and insurance in my name.
He doesn't want to move out or sell and a solicitor expalined that I can't do anything either.

You can move in.

bluejulie

getmore4less wrote: »

You can move in.

Thanks but I'm married now and can't just go back and live in a flat with my husband and ex.