Sale to other Tenant in Common

weetruffle

Hi,
Firstly apologies if this has been covered before, but I couldn't find exactly what I was looking for...

I own a property with my ex as tenants in common. I am transferring my share to him, for free as I just want the whole thing to come to an end.

The transfer of title has been drafted and states that the transfer is for the consideration of him taking on my half of the mortgage.

I hadn't considered any tax implications as I am effectively settling a debt and not making any money - but as this forum is such a goldmine of information I thought I'd check to see if anyone was aware of anything I hadn't thought of?

Thank you all so much in advance.

tom9980

what does the mortgage company say? can ex take on the debt on his own or not? can ex afford to? i wouldnt sign over the house to ex without sorting the mortgage out!

there are no tax considerations that i can think of.

kingstreet

You may wish to look at the HMRC guide to stamp duty on transfers of land or property;-

http://www.hmrc.gov.uk/sdlt/calculate/transfer-ownership.htm

rpc

The mortgage company may well block this unless they agree to give your ex a mortgage in his sole name.

There may be stamp duty to pay, see https://forums.moneysavingexpert.com/discussion/comment/49871435#Comment_49871435 You don't say if you are/were married or not, which affects this.

weetruffle

Thanks all. No stamp duty as we're under the threshold and the mortgage company have ok'ed everything. Sounds like worrying over nothing!
Thanks a lot

Mojisola

Make sure the change of ownership and your name coming off the mortgage happens at the same time. Don't risk still being responsible for the debt without owning the asset.

rpc

weetruffle wrote: »

Thanks all. No stamp duty as we're under the threshold and the mortgage company have ok'ed everything. Sounds like worrying over nothing!
Thanks a lot

You may still have to complete an SDLT return, even if it is just to tell them that there is nothing to pay.