BTL property Mortgage

starM

Hi,

I have Buy to let property which has an outstanding mortgage of 42k. The mortgage is in my name. The rent payments are £550pm.

I am think to repay the full outstanding balance and transfer the property in my wife's name. I am working full time and she is housewife. The annual profit will be less than 10k so there wouldn't be any tax to pay.

Afew questions:-
Once the mortgage is paid off - Can I straight away do another tenancy agreement with the tenants or will have to wait until the property is transferred into my wife's name?
Which forms do I have to complete to transfer property ownership?

Thanks
MS

G_M

You may need to pay Capital Gains Tax when you transfer the property since it is not your primary residence.

http://www.hmrc.gov.uk/manuals/cgmanual/CG22200.htm

https://www.gov.uk/capital-gains-tax/overview

You will not need to alter the tenancy at all. The existing tenancy continues o be valid, but the new owner (wife) must inform the tenants she has become the landlord (Landlord & Tenant Act 1985 section 3 )

For the transfer, you'd need a TR1 from the Land registry + ID and related forms (see the guide)

SuzieSue

G_M wrote: »

You may need to pay Capital Gains Tax when you transfer the property since it is not your primary residence.

Transfers between husband and wife are exempt from CGT.

starM

SuzieSue wrote: »

Transfers between husband and wife are exempt from CGT.

Yes that's what I have heard aswel.


From what date she should be registered for SA and start keeping her accounts separate as a new landlord?

G_M

SuzieSue wrote: »

Transfers between husband and wife are exempt from CGT.

Thanks. I wasn't sure hence "said' may.