Hi all,
I hope someone can chip in with advise on the below situation:
- I already own a home, my girlfriend is a first-time-buyer.
- My girlfriend intends to purchase a property with an approx price of £275k.
- As the price is below the new £300k FTB threshold there is no STLD to pay.
- She would require a £220k mortgage.
- In the near future I'd like to take up half ownership.
- I believe I would be liable for 3% of half of the outstanding mortgage due to owning a second home, so 3% of £110k = £3,300 (SDLT).
Is that correct? If so, then that's fine. The thing I can't work out relates to capital gains tax. Lets say the property value rises to £350k when the transfer of equity happens, would this incur additional taxation? If it does, would the additional tax be payable at the time of equity transfer, or at some point in the future if the property is sold?
Lastly, Would there be any benefit in assigning 50% of the property (and it's future sale) to me via deed of trust, Vs transferring equity and putting me on the mortgage (assuming the two approaches are actually different!)?
Thanks in advance!
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