J
JavMasterJ
Guest
Hi Everybody,
We are considering trading up in the next while and are looking at a few options - one idea came to us that might be a good one or a bizzare one! Here's the proposal:
We sell half of our house to a friend of ours who is looking to get a foot onto the property ladder. They are buying on their own so the amount they can borrow for a mortgage is limited, we are happy to help them if we can. So now we receive 50% of the market value of the house as payment.
Then the other 50% we keep on but 'convert' to an investment for ourselves - effectively the other half of the house would be rented to somebody who would live with our friend. So we get to keep on half of the house as an appreciating asset which might be useful when we need a chunk of cash in 10 years time or so.
From my research so far I think we need to cover the following:
Thanks as usual for any input.
We are considering trading up in the next while and are looking at a few options - one idea came to us that might be a good one or a bizzare one! Here's the proposal:
We sell half of our house to a friend of ours who is looking to get a foot onto the property ladder. They are buying on their own so the amount they can borrow for a mortgage is limited, we are happy to help them if we can. So now we receive 50% of the market value of the house as payment.
Then the other 50% we keep on but 'convert' to an investment for ourselves - effectively the other half of the house would be rented to somebody who would live with our friend. So we get to keep on half of the house as an appreciating asset which might be useful when we need a chunk of cash in 10 years time or so.
From my research so far I think we need to cover the following:
- Legal agreement covering terms when the our investment half of the house could be bought
- We were FTBs - now we will face stamp duty clawback since we are converting PPR to investment
- We'll have income tax on rental income from our share
- We'll have capital gains tax on our share if/when we sell it
Thanks as usual for any input.