Remortgaging woes, is it just me?

dojj

I'm not sure what the document is called, trust deed or something, drawn up by legal types and signed and notoried and the like so it's all above board
But to remove the worry that in my demise someone will then expect half a house is what all this is supposed to prevent
Not sure of the exact wording but it's along the lines of him holding his share in trust and that he hills no claim to the property as he has made no financial contribution to the purchase/upkeep/running costs

I want expecting to open o such a complicated can of worms with a simple question but as I've learnt to my cost, you can never be too careful when it comes to money

Pixie5740

I think what getmore4less was getting at is that if you and your brother own the property as joint tenants you each own the whole property. When a joint tenant dies the surviving tenant(s) owns the whole property regardless of what is written in a will or deed of trust. If you own it as tenants in common there might be something you can do.

dojj

Tennant in common in equal shares
Declared he holds his 50% in the property upon trust for and on behalf on me absolutely
But once his name is off the mortgage and land registry this becomes worthless yes?

snowscreamer

dojj wrote:

The mortgage is down to £116k

dojj wrote:

Apparently the most I can borrow is £107k

dojj wrote:

i've got about £22k in savings

I'm no expert, but seems to me the obvious answer here is to borrow the maximum they will lend you on the lower rate and make up the extra with your savings. Savings will reduce to £13k but with your mortgage payment reduced by £200/month it will only take 3 years 9 months (assuming interest rates don't change, income doesn't change, yada yada) to build the savings back up to where they were with the savings from the lower rate. AND you will owe £9000 less to boot.

p00hsticks

dojj wrote: »

the capital gains thing has got me worried though, will i need to pay tax even if i don't sell the house?

It's really your brother who needs to be worried, not you. From what you say, you bought the property in the names of you and your brother, and since then it's risen in price by £120k +. That means you've each made a gain of £60k. As you've been living in it as your main residence, then you're exempt from CTG, but he's not, and when you change the deeds to remove him and put your wife on instead then as far as I'm asware that gain is effectively crystallised and the CTG needs to be paid.

Ther's a CTG allowance of around £11k which he can use but that still means he'll looking at paying tax on around £50k. From the sound of it, he only agreed to put his name on the deeds and mortgage to help you out and won't get any financial advantage from the rise in price, so I'd suggest that you'd be morally (if not legally) obliged to pay any CTG tax that he might be liable for on his behalf.