Hello bd6759 & maths, thank you for your responses.
My Wife and I are in our 60s and the mortgages have about 6 years left. The last conversation I had with my bank about re-mortgaging my properties stated that due to our age we will likely not be able to get more than a 10 year mortgage which will make monthly payments unsustainable for us. My son is in his 30s so we are hoping to remortgage for 20 years. The reason for the 50% split is because it will take either my wife or myself being on the mortgage to pass an affordability check.
The rental property is still owned by us, we just want to switch from a Buy to Let to a residential because the bank will not allow family to move in as per the Buy to Let Mortgage restrictions.
As stated we are also attempting to reduce our estate.
Property 1 (Transfer of 90% to my brother) - Property value £500,000 (Freehold) to be Re-mortgaged for 200,000 to free up some cash My brother will be paying the mortgage.
Property 2 (Transfer of 50% to my Son) - Property value £420,000 (Mortgaged £70,000)
Property 3 (Transfer of 50% to my Son) - Property value £520,000 (Mortgaged £159,000)
As you have stated that stamp duty is still payable I am going by the information on this site and the zoopla site below to estimate some figures. please let me know if i am way off the mark.
in particular this paragraph
For example, a property may have equity of £600,000 and a mortgage of £200,000. If you take on 50% of the equity and 50% the mortgage, this will total to £400,000. Under the current holiday you would not pay Stamp Duty.
These are the new holiday rates:
Up to £500,000: 0%
On the portion from £500,001 to £925,000: 5%
On the portion from £925,001 to £1.5m: 10%
Above £1.5m: 12%
The 3% stamp duty surcharge will apply on top of the new holiday rates, so people buying additional homes will attract a 3% stamp duty bill on the first £500,000 of property.
My estimates for paying stamp duty.
Property 1 Transfer value 450,000 (£13,500 payable it will be their second home purchase)
Property 2 Transfer value 245,000 (210,000 Equity + 35,000 Mortgage) (No Stamp Duty Payable)
Property 3 Transfer value 339,500 (260,000 Equity + 79,500 Mortgage) (No Stamp Duty Payable)
I am not sure if transferring 50% of one property and then 50% of the other will count as a second property purchase.
If the above method is as you have stated convoluted, what would you recommend.
again thanks for your response.