Buying someone out of their share in a jointly owned house - step by step help please

_whatshername_

The house is owned as joint tenants by two people, one wants to be bought out of their share, they don't currently live in the house and own their own house elsewhere. This will involve the remaining owner's partner buying into the property. There is currently no mortgage on the property but a mortgage will be needed to fund this. 

How do we go about this? 

I am planning to get the house valued with a view to agreeing a price between us and have approached a mortgage broker so I have an idea what we can borrow. 

getmore4less

The one that wants to get bought out should sever the joint tenancy if they want that money to go elsewhere if they die and avoid the transfer by survivorship.


There will need to be a SDLT assessment(maybe as second home) for the purchase
There will need to be  a CGT assessment for the one disposing of their share.

_whatshername_

The house is worth less than the current stamp duty threshold given the current £500k limit. 
For CGT the seller will need to work out the difference between the purchase price for their share and the sale price for their share and then pay a percentage of this depending upon whether they are a basic or higher rate tax payer - correct? Is there any correction for inflation? The property has been owned in the current shares for over 15 years. 

We aren't concerned about the transfer by survivorship at this point while the transaction goes through, but obviously the seller will need to remove their name from the deeds when they are bought out. Can that just be done by substituting one name for the other as the new owners will want to own as joint tenants too? 

getmore4less

As there is a mortgage needed there will be solicitors involved they will deal with the transfer. 

The SDLT holiday does not apply where it will be classed as second home. 

_whatshername_

It won't be a second home for the buyer. The buyers live in the house now and it is their only property. The one being added to the deeds is a first time buyer.