Partner buying into my house

Deniseconfused

Im busy restructuring my finances and fed up with mortgages. I have a house worth £1m with £250k mortgage. 

My partner has a house worth £500k and no mortgage. 

We dont need two houses now as all kids flown the nest, I am retired (57) and he is about to (66) 

He plans to sell his house and buy into 25% of my house. I will use that money to pay off my mortgage. 

Tenants in common. 75/25 shares. Not married and never will be. He will put the other £250k into a high earning savings account to add to pensions - but I bet he’ll end up buying a property in Spain 🤣

I love this forum as to the great experience. So interested in pitfalls and stamp duty cost. Would it be a consideration of £250k as he only would own 25% ? 

Keep_pedalling

One other tax consideration is IHT especially if you are both divorced rather than widowed. Not being married or in a civil partnership is likely to be costly on the first death.

Deniseconfused

Keep_pedalling said:

One other tax consideration is IHT especially if you are both divorced rather than widowed. Not being married or in a civil partnership is likely to be costly on the first death.

Im am ex divorce lawyer 😂 now retired. I’d never marry again. Im just busy selling other stuff to give to my sons now and hope I live 7 years 🤞🏼

Plus my estate goes to my kids. My partner to his kids. They would never be blended in any event - so be no IHT savings to marry 

SDLT_Geek

Deniseconfused said:

Im busy restructuring my finances and fed up with mortgages. I have a house worth £1m with £250k mortgage. 

My partner has a house worth £500k and no mortgage. 

We dont need two houses now as all kids flown the nest, I am retired (57) and he is about to (66) 

He plans to sell his house and buy into 25% of my house. I will use that money to pay off my mortgage. 

Tenants in common. 75/25 shares. Not married and never will be. He will put the other £250k into a high earning savings account to add to pensions - but I bet he’ll end up buying a property in Spain 🤣

I love this forum as to the great experience. So interested in pitfalls and stamp duty cost. Would it be a consideration of £250k as he only would own 25% ? 

Is the property in England, so the relevant stamp duty is stamp duty land tax?  If so the threshold is presently £250,000 where standard rates apply.  So that would mean no SDLT if this is to be your partner’s only property.

Keep_pedalling

Deniseconfused said:

Keep_pedalling said:

One other tax consideration is IHT especially if you are both divorced rather than widowed. Not being married or in a civil partnership is likely to be costly on the first death.

Im am ex divorce lawyer 😂 now retired. I’d never marry again. Im just busy selling other stuff to give to my sons now and hope I live 7 years 🤞🏼

Plus my estate goes to my kids. My partner to his kids. They would never be blended in any event - so be no IHT savings to marry 

Fair enough. When gifting you might like to consider term insurance that would cover IHT in the event of you meeting an unfortunate early demise. 

Deniseconfused

Keep_pedalling said:

Deniseconfused said:

Keep_pedalling said:

One other tax consideration is IHT especially if you are both divorced rather than widowed. Not being married or in a civil partnership is likely to be costly on the first death.

Im am ex divorce lawyer 😂 now retired. I’d never marry again. Im just busy selling other stuff to give to my sons now and hope I live 7 years 🤞🏼

Plus my estate goes to my kids. My partner to his kids. They would never be blended in any event - so be no IHT savings to marry 

Fair enough. When gifting you might like to consider term insurance that would cover IHT in the event of you meeting an unfortunate early demise. 

Good idea. Ive just had a 50+ health check at the GP and passed with flying colours, so good idea to lock in term insurance now 👍🏼😃