joint mortgage

Katykat

anyone have information on any tax or other liabilities we may incur. My husband and I have fully paid for our house. Our daughter wants her own house but cannot afford a decent house in the right area. we would lke to buy 25% of a house with a mortgage and she buy the remaining 75% with a mortgage. We are considering applying for a joint mortgage taking into account all 3 salaries. Is this the best way to do this? and would my husband or I incur any tax debts?

Fairdo_2

Best to consult with any Tax Advisers or Accountants. Hopefully, some of these may contribute on this forum?

You would also be advised to take Legal Advice on your proposition aswell.

If you are offering to provide her with a gift of this 25% then there are possible Inheritance Tax implications over the first 7 years. ****** I am not an expert in that area, so please take this as a rough guide only*****

I personally am not sure of any other tax implications as You would be Remortgaging against your own property to provide her with a gift and your Daughter would be taking a mortgage in her own name for the rest, so I don't think you would be subject to Capital Gains Tax if she sold it quickly for a large property, unless you were taking a share in the profit and you had a liability to the tax for that year.

Sorry it is a bit vague.

boland

I have had the same kind of exprience as this. I am currently living in my mum and dads house, as they are living in spain they do not have a mortage on the house either, so i to wanted to buy the house.

I got in touch with a financial advisor, who advised me that what we could do is transfer deads of the house into my name ( he said this could be done with a solisitor) and then i could remortage the house for same 50 - 75%, then wriring up an agreement with a solisitor saying that if i sold the house 50 - 25 % would go back to my parents...

I dont know if you will be able to do the same thing but it may be worth thinking about......

Hope it helps !

Katykat

Thanks Fairdo, not sure about inheritance tax as this would not actually be a gift. The intention is that she would remortgage in about 3 yrs when her salary rises or if she marries and we would take 25% of the current value. you are right about capital gains tax though. It might be worth consulting the solicitor who handles the conveyancing