Hi, grateful of advice please.
I live in my own mortgaged property. 3 years ago my partner was living in rented accommodation. He wanted to purchase a small property to rent out but as recently self employed couldn't get decent mortgage so we agreed that the house would be purchased in my name. Purchased for £107000 with £40000 deposit. Shortly after purchase his circumstances changed and he ended up moving into the house himself therefore the house was never rented out and he just pays the mortgage each month. I hv never declared anything to hmrc as I never received anything in 'rent'.
I hv now bought my own btl and so we want to sort out the properties and get his property back in his name as it looks like he will be living there for the foreseeable future.
I understand if I 'sell' the property back to him I will incur CGT. The property is worth around £130000 in realistic terms
My questions:
1. I understand I could sell it back to him for whatever figure I choose - is that correct? E.g. Ideally the £60000 which is basically the mortgage he has on it
2. When he applies for a mortgage will they think it odd he is only paying £60k? Will they care?
2. With regards the CGT, who values the property to establish what needs to be paid? Can I just get that done myself?
3. Do I then need to send in the valuations with my tax return?
4. With the income from my own property this year I am likely to be very close to 40% tax for 2017-2018. Adding in the CGT does this mean it will have a big impact on the rest of my earnings for 2017-18?
I thought it would be worthwhile getting the property back into his name but just want to make sure it's not going to cost huge amount but I'm thinking the longer we leave it and property goes up the more it will cost us in the long run.
Very grateful for your advice.
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