Selling a stake in home

D

dm007

Guest
Hi,

I am planning on selling a 50% stake in my home to my sister. I think the property would be valued at about €400k (we bought for €300k). I would not be asking for the market value from my sister as she is buyng on her own and would not be able to afford to get on the property ladder otherwise. The plan is that she would live there and rent out the spare room which would pay the other half of the mortgage. Myself and my partner would be buying elsewhere. The property is in my partner and my names at the moment.

Would anyone know what the implications are for tax or stamp Duty? Would this be applicable as we are only going to be changing the names on the title deeds from two people to three?
 
Off the top of my head a few things that may come into play ..

Gift tax that your sister would be liable for depending on how much of a discount you are giving her on the 50% of the house market value.

You will be regarded as an investor from now on as well. In that regard the future sale of the house you co own with your sister would be liable for capital gains tax.

Stamp duty on your new house would be as an investor so if buying a new house would incur stamp duty that would otherwise not have been paid.

The bank may insist on you paying off the mortgage and getting a new one as you cant just sell half of the house they have a lien on. This may involve a stamp duty payment on the mortgage if over the threshold.
 
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