transfer of equity

economic

hi,


I own a leasehold flat with my brother and own it as tenants in common in unequal shares (% split was not specified in the deeds).


I want to sell the property and buy another solely in my name (and port the existing mortgage also solely under my name). my brother is happy to sell his portion without buying. I have the following questions:


- do I need to do the transfer of equity before the mortgage ports over (when I sell and buy in a chain) and how long do I need to give? nationwide said I do but the guy was a bit unsure.


- does the freeholder need to do anything in the transfer of equity process and is he legally obliged to reply to any requests by my solicitors?


- is stamp duty payable on the transfer - if so can I not just get around it by saying he value being transferred is less then the 125k threshold?


- is CGT payable on the sale of the flat (I have lived there since I bought it and my name is on council tax but my brother has only lived here very recently but his name is not on council tax). Do we need to prove to hmrc lived here in order to not pay CGT? this flat is both our only property and has a residential mortgage.


- how long does the whole process take normally?


thanks
economic

Land_Registry

economic wrote: »

hi,

I own a leasehold flat with my brother and own it as tenants in common in unequal shares (% split was not specified in the deeds).

I want to sell the property and buy another solely in my name (and port the existing mortgage also solely under my name). my brother is happy to sell his portion without buying. I have the following questions:

- do I need to do the transfer of equity before the mortgage ports over (when I sell and buy in a chain) and how long do I need to give? nationwide said I do but the guy was a bit unsure.

I suspect Nationwide decide re the first question so not too sure why they would be unsure - it all depends on whether they are happy to port the mortgage over as part of a sale/purchase involving your brother or not. As he is on the title/mortgage already and they are happy to port (?) then presumably they would be happy for you both to sell.

If they want your brother off the mortgage before you sell and then port I assume they will want you to Transfer the equity.

Others will need to advise re freeholder, HMRC and CGT issues but worth taking a look at the lease to see what obligations both you and the freeholder are under.