Paying off partners mortgage - but I own a property that i currently rent out! How do I proceed?

dp543

Hi - so for a bit of background. I live with my partner in the house he owns solely under his name. I also own a flat that I currently rent out and due to issues with the building I am unable to sell this currently. 

My partners mortgage is up soon and I have a some savings so would like to pay off the rest of his mortgage (not a huge amount like 40-50k) and in return basically have some share in the property. 

I was thinking of getting some sort of beneficial interest set up in the property where I would then have the right to receive a proportion of the property value if ever sold. 

My main concern of doing this is will I end up being slapped with lots of unintended tax issues by paying off this mortgage? Like I said above I already own a property that I rent out (cant sell it currently) - which is making me think if we sold my partners property in say a years time after setting up the beneficial interest I would be subject to pay some sort of tax? Or potentially be subject to pay stamp duty on the proportion of the property I paid off.

Any advice or information about this would be much appreciated. 

Keep_pedalling

You would have to pay 3% in SDLT because you already own a property, but as this is your main residence there would be no tax liability on the sale of the property.

peb

Private charge?  So your partner will "owe" you the money but you agree how and if/when it's paid but your interest is protected.

Emmia

As you're not married / civil partnered I wouldn't put money into their property like this. What happens if you split up? How might you get your money back?

*if you were married etc., and split up the money put in could be considered as part of the financial settlement in a divorce.

Keep_pedalling

Emmia said:

As you're not married / civil partnered I wouldn't put money into their property like this. What happens if you split up? How might you get your money back?

*if you were married etc., and split up the money put in could be considered as part of the financial settlement in a divorce.

If the money is a loan then you place a charge on the house, if not then they become tenants in common with a deed of trust laying out the percentage ownership.