Transferring 50% of house to son

sukhi_1

Hi all,
I bought a house 8 years ago with my dad, he was on the mortgage only for affordability reasons to secure my mortgage. We bought the house for 100k with a 75k mortgage.

I've been chopping down the mortgage over the years and there is very little left now and i'm looking to clear it within the next few months. We were discussing transferring the house fully into my name and i wanted to know whether i should do this before or after clearing the mortgage.

Is this seen as him 'gifting' his half of the house to me? if so, what are the implications?
Additional info... I paid the initial deposit, i have been paying the mortgage since, all the over payments and will be paying this final overpayment too if that helps. Also, my dad is fully on board with this so there won't be any disputes there.

Help and advice welcome

BoGoF

So has dad ever lived in the house?

Pennywise

For tax purposes, it doesn't matter whether there's a mortgage or not. If capital gains tax is due, it's worked out on the difference between sale & purchase prices (less associated costs) - the mortgage amount is irrelevant and ignored.

BoGoF

Are you hoping to get a different answer from when you asked over a year ago?

sukhi_1

BoGoF wrote: »

So has dad ever lived in the house?

No he hasn't, but nor have I as its been rented.

sukhi_1

Pennywise wrote: »

For tax purposes, it doesn't matter whether there's a mortgage or not. If capital gains tax is due, it's worked out on the difference between sale & purchase prices (less associated costs) - the mortgage amount is irrelevant and ignored.

This is what im unsure of and having spoken to a solicitor quickly to get a quote to get the ball rolling and they said after they do the land registry I left to figure out if tax is due as they're not tax experts.
For example.. If the house has gained 40k then dad's gain (half) will be 20k minus his circa 11k allowance per year. So 9k would be subject to whatever the capital gains tax is (I think).

I'd pay the tax dad was due because going half on the house was an arrangement to help me out getting on the property ladder.

sukhi_1

BoGoF wrote: »

Are you hoping to get a different answer from when you asked over a year ago?

Haha, yes I did ask over a year ago but knew even less about how to action this back then and put it on the back burner till now. It was suggested by someone on that thread that I post in this section so here I am a year later.
Also, other members of the forum police get upset when old threads are brought back to life ..cant win either way!

00ec25

yes it is annoying when you simply copy and paste your original question and don't update it for the answers previously given, as that just wastes everyone's time going over the same ground

https://forums.moneysavingexpert.com/discussion/comment/72189793#Comment_72189793

CGT - read the previous thread re you and father
SDLT - possibly, read the previous thread re you and father

having done that what else is new that you don't understand?

for example you said before that father had lived there himself, now you imply he didn't

xylophone

for example you said before that father had lived there himself, now you imply he didn't

A direct statement of fact rather than an implication?

So has dad ever lived in the house?
No he hasn't, but nor have I as its been rented.

00ec25

xylophone wrote: »

A direct statement of fact rather than an implication?

you mean the factual contradictions which you haven't read

Does/did you dad live in the house?
Yes he did, and i guess he can just as easily move back in if it means i don't pay capital gains. Is there a given period he will have to move in for so we don't need to pay it?