Help with mortgage!!

imers

Hello

I just need some advice on Joint mortgages. I have a 2yr old joint mortgage with a parent and both our names are on the deeds. I wasnt aware of this as i thought i was the only person on it and had a guarantor mortgage. If I come to sell the house, will CGT have to be paid? It is my first mortgage. Can you change from a joint to a guarantor mortgage and thus I or my parent not have to pay cgt in the future when I come to sell the house? can i change the deeds to just myself. what are the implications of doing this???

Any help will be greatly appreciated!

Thanks

imers

cells

If you change the mortgage and deeds to just yourself then it will look and be treated as your parent gifting you the share of the property he/she owns and you will NOT have to pay CGT assuming that is your only property.

BUT if your parent dies within 7 years the capital gains from when the house was bought to when the house was sold will be treated as her asset, thus the parent will pay inheritance tax on that equity gain at the standard 40%.



A little complicated :P

mightymouse

Hi

From memory, it is possible for your parent to have signed the Mortgage Deed as Guarantor so check with your lender whether it is a Guarantor or Joint Mortgage.