Transfer BTL to spouse with mortgage

tired_dad

BTL with small remaining mortgage (capital repayment).
Jointly owned with spouse.

Want to

1. Remortgage for a higher amount to facilitate a further investment
2. Transfer sole ownership to spouse

any advice on how to deliver this outcome? Any tax implications?

Reason I'm asking is ive heard you can't transfer ownership with a mortgage on the property

Pixie5740

Correct, you can't transfer legal ownership of a property you have a mortgage secured against to someone else without the mortgage lender's permission which they are unlikely to grant. Think about it, if you default on the mortgage how would they repossess the property if it was owned by someone else.

You could consider having a joint BTL mortgage with your wife with the property owned as tenants in common with a 99:1 split if the idea behind the transfer is to reduce income tax liability because your wife would pay less income tax than you.

G_M

Ask the lender. They might,or might not agree.

If they don't, your spouse could apply for a new (higher) mortgage in her sole name, get the property trasferred into her name, and use part of her new mortgage to pay off the existng one.