Do I need to remove my sister from my mortgage?

loubel

As holly hobby said, when you remortgage you will also need to do a transfer of equity to change the title into your sole name.

getmore4less

holly_hobby wrote: »

Re Tax....

This would only come into play for her (CGT), if goods or money are exchanged in respect of the consideration, exceeding her share of the original pch price/cost of purchase ie 50% (if held as joint tenants). To which she can offset her unused CGT annual allowance & PRR relief, with 40% due (via annual return) on any residual amount. If nothing is exchanged (which I think is the case, there will be no CGT liability)

http://www.hmrc.gov.uk/cgt/intro/basics.htm

CGT assesed on disposal even if no considertion.

Allownce is £10600

CGT is 18% or 28% depending on income.

holly_hobby

getmore4less wrote: »

http://www.hmrc.gov.uk/cgt/intro/basics.htm

CGT assesed on disposal even if no considertion.

Allownce is £10600

CGT is 18% or 28% depending on income.

Indeed ....

Yes in addition to the annual unused CGT personal allowance quoted, and as prev discussed, Sister may also mitigate CGT liability on determined "gain" (which is market value at TOE, less pch price), by the application of qualifying PPR, plus permitted deduction of (their share) of any improvement costs and/or costs associated with acquisition.

H

holly_hobby

StuC75 wrote: »

what about moving the mortgage elsewhere as a New single applicant...

Not possible, as the sister is named on the title deeds - and all those named on the deeds must be party to the mge.

TOE is the only way to seek a single name mortgage.

Hope this helps

Holly

holly_hobby

shirlls wrote: »

My Broker has looked around and quoted me £500 to remove my sister from the mortgage. I'm going to HSBC tomorrow so I'll see how much they say. I think the best option is to remove her, she's just got a new mortgage and I'll bet she's forgot her name is on my mortgage. I don't have any life insurance as I don't have any dependents but I already have a will and she's named on that.

If you want to leave the property to your Sister without hassel (or anyone else), you should really think about effecting a term assurance policy (in trust), which will repay the mge in the event of your death before scheduled redemption.

If you're instead happy for the administrators to dispose of the property to repay any os mge, then of course life protection isn't a necessity for a single with no dependants. (although as a single individual with a sole income, you may wish to consider effecting ASU, Critical Illness and PHI policies - which will go someway to assisting with income/repayment of your mortgage & commitments (subject to max benefit levels), should you suffer a long term illness, diagnosis of a critical/terminal illness and/or unemployment).

Your adviser will assist in discussing and prioritising defined need against budget.

Hope this helps

Holly x