Selling my half of the house to my brother who owns the other half

Majoja2004

Hi, I own half of a house with my brother.  We bought the house together when our mother was going through financial difficulties when our father passed away.  We put a hefty amount down when buying the house and have now paid off the full value of the house (mortgage free).  Recently out mother sadly passed away and my brother split from his partner so he wants to buy my half of the house.  The house is valued at £150,000 and he will have the £75,000 when he can withdraw 25% of his pension tax-free in December.  How simple is this to do?  Is there any complications with this?  We want to do this correctly so that nothing can come back on us in future years.  Is it better for him to transfer the lump sum or pay me so much a month?  I'm wary of hidden charges and taxes that might need to be paid.   

Keep_pedalling

Fairy simple for him to pay you £75k and the change the land registry. Do you currently live there? If not you mat have a small amount of CGT to pay but there are no other tax implications for you.

Bookworm225

you will need to check your CGT position because I assume it is not the house you have lived in yourself whilst being an owner of it - I assume mother was there on her own for at least part of your ownership to date? Who has lived there since she passed?

whether he lump sums or pays in monthly is a matter for you two to agree on. There are no other implications over that aspect 

brother will not have to pay SDLT if the amount of money he pays you is "only" £75K as that is below basic rate SDLT threshold of £125k (higher rate SDLT does not apply to buying extra share of property you already part own).

SDLT_Geek

Bookworm225 said:

you will need to check your CGT position because I assume it is not the house you have lived in yourself whilst being an owner of it - I assume mother was there on her own for at least part of your ownership to date? Who has lived there since she passed?

whether he lump sums or pays in monthly is a matter for you two to agree on. There are no other implications over that aspect 

brother will not have to pay SDLT if the amount of money he pays you is "only" £75K as that is below basic rate SDLT threshold of £125k (higher rate SDLT does not apply to buying extra share of property you already part own).

The bit in bold above is true if the property concerned is in England and:

(a)  The buyer has lived in the property as their only or main residence for all of the last three years and

(b)  The buyer has a share of at least 25% in the property.

Perhaps the SDLT position here for the brother is simple if the brother has no other property interests relevant to the 5% SDLT surcharge.