Selling part of a house

[confused2000]

I bought a house with my Dad in 2003. He paid the deposit and we got a joint mortgage. I have then lived in the house for the last 6 years paying the mortgage while my Dad has lived in his house and has had no involvement. I am now looking to move out and buy a house with my fiancé. Dad would like to keep the house and rent it out as he doesn't want to sell while the market is still so illiquid.

At the moment the house is worth about the same as when we bought it and I am not looking for any money from him (as I have lived in a nice place for the last 6 years paying less than I would have if I was renting). Therefore can I just transfer my share to him, cancel our joint mortgage and let him take out his own mortgage? Will he need to pay STAMP? If so how much (the house was bought for £280,000).

Any help would be greatly appreciated!

[Peter D]

The transfer of your share would be deemed a disposal but as you are resident then there would be no CGT. As he is only buying 1/2 the property then it would not trigger SDLT. However I am concerned that this is not a good idea as you will loose private residence relief from CGT for 36 months and up to £40,000 of letting relief, this would keep the property free from CGT for 6,7,8 0r even more yeras depending on what house prices do. Read IR285 and check it out or seek face to face professional advice. Regards Peter