Adding partner to mortgage - share size

thomson_adam

I have owned my property solely for quite some time and now my mortgage is up for renewal 

my panther and I applied for a joint mortgage as we wanted to free some equity.

As my partner wasn’t on my mortgage the solicitors has asked what share to give her for the land registry

if I was say to give a 70/30 split does this mean in the event of a separation would one party only receive 30%

Can I also ask what capitals gains tax she may be accountable for ?  

jimjames

Why would CGT be payable? Is this an investment property?

You can set the ownership % to be what you want and yes that's the amount of the property you own.

getmore4less

You need to crunch some numbers to work out what is sensible.

They are in effect buying part of your property so may have a SDLT liability.

What you do is a virtual sale by you and a virtual purchase by both of you.

There are two main ways people do this 

The classic one many use is get your deposits back. this is equivalent to the bigger deposit lending the smaller one 1/2 the difference.
Also assumes the debt is being paid 50:50

eg. say you have a house worth £200k  with a mortgage of 100k and you are changing that to £150k.
your deposit is £50k, the mortgage gets paid 50:50,  when you sell/split you get £50k back then split what's left after the mortgage 50:50

the other way is equitable shares for those numbers
you own 25%  + 1/2 of 75% OH own 1/2 of 75%
62.5% 37.5%
when you sell you split the full value by those % then pay off 1/2 the mortgage each from your shares.