Joint Ownership

[Yoshi_Toshi]

Hi,

I have a question about joint ownership.

I bought a house with my brother 2 years ago everything was 50/50, house was 220EUR and mortgage was 92% of that. We are both living here and were first timebuyers at the time.
I am now looking to sell my half to my brother as I'm looking to buy a new house with my girlfriend who is a first time buyer.

Current market Value of current house is 350Eur and there is roughly 175 remaining on the mortgage.

What's involved in transferring ownership (both names are on deeds/mortgage)?
Is stamp duty applicable?
Is CGT applicable?
Is there anything else I should know?

Thanks in Advance!

 

[Yoshi_Toshi]

Also,

Would I still be considered as a first time buyer?

 

[legallady]

well, you definately wont be a first time buyer - they are people who have not owned a house before, you have so you are not a first time buyer. Im almost certain you would have to pay some capital gains tax. I dont know about the other questions, sorry!

 

[gailey]

You would still be considered a first time buyer when you apply for mortgage relief, you are a first time buyer for seven years after you buy your first house. I don't see why you would have to pay capital gains tax, unless you received a rental income on the property. You would have to pay stamp duty on your next house if over a certain price and size.

 

[liteweight]

You are no longer a first time buyer. As the property was your PPR there will be no capital gains tax on sale. If a FTB rents a property before owning it for 5 years they become liable for stamp duty clawback. As you are selling your share this does not apply to you. As far as your brother is concerned, stamp duty will only apply if the amount received is over 127k. AFAIK the transfer of deeds will be handled like any other sale. Try doing a search on the forum as your questions have been discussed before. Good luck.

 

[bacchus]

well, you definately wont be a first time buyer - they are people who have not owned a house before

One can own a house (e.g. gifted or inherited) and still be FTB.
FTB status is lost when buying or building your home.

 

[Yoshi_Toshi]

Hi,

Thanks for the replys...

I have lived there since I bought it and it was never rented.
So I shouldn't have to pay CGT.

The house that I'm looking to buy in new and under 125sq meters.
Does this mean I don't have to pay stamp duty?

I'm still a bit confused on the following:

Am I still a first time buyer?
Do I have to pay stamp duty on the old place?

Thanks,

 

[dv8]

You are still a FTB for mortgage interest relief purposed but not for stamp duty purposes.

This means you & your partner will be liable for SD on the purchase of this next property, for you that is, at ownier occupier rates not FTB rates as to qualify for FTB rates both parties must be FTBs I believe.

CGT tax won't apply on your current PPR.

AFAIK also there wouldn't have been a SD clawback if you rented a room in the house under the rent a room scheme.

Your solicitor will explain all of these tax issues to you anyway.


Best of luck!

 

[liteweight]

Hi,

Thanks for the replys...

I have lived there since I bought it and it was never rented.
So I shouldn't have to pay CGT.

Correct.

The house that I'm looking to buy in new and under 125sq meters.
Does this mean I don't have to pay stamp duty?

New builds up to 125sq.mts. do not have a stamp duty charge for owner occupiers. So, no you won't have to pay stamp duty.

I'm still a bit confused on the following:

Am I still a first time buyer?
Do I have to pay stamp duty on the old place?

You are treated as a first time buyer as far as mortgage interest relief goes for 7 years after your first purchase. If, however, you were not buying a new build, you would be charged stamp duty as it is not your first purchase.

There should not be any stamp duty clawback on your first property as you lived there (PPR) and are selling it on, not renting it out.