Hope someone can offer a little help on this preliminary thought.....
Married couple, home worth circa £300k, outstanding mortgage £75k. (both in joint names)
In order that one partner can look to purchase a separate home, I'm looking at option of this:
Whilst still married, transfer ownership of home to 100% partner A, joint mortgage would also transfer to partner A name only.
From what I understand, there is no CGT liability whilst a couple are married on transferring assets.
I also understand that wirth regards to SDLT, providing half the outstanding mortgage comes to less than £125,000 (residential property), no tax will be payable.
1) Is this correct? So no CGT or SDLT liability on this movement?
2) Does that then allow Partner B to go ahead and buy a home without SDLT being incurred? (Or does it still fall within the 2nd home category as long as you remain married?)
3) Or does Partner B have to pay the 2nd home SDLT levy, an apply to have it refunded if the divorce is then pursued and finalised within 3 years of the purchase of new home?
In a nutshell, I'm looking at how quickly the current home can be transferred into a sole name, allowing the 2nd person to gain a sole mortgage and buy a new property. (remaining as joint names on a mortgage will no doubt make it very difficult to borrow to buy a home) Without having to pay SDLT or CGT on the movememnt of the family home.
It's likely that the separation may go down the route of 2 years separated in order to then file for divorce. If we had to wait 2 years before moving the family home ownership and mortgage, I cant think of any way the other partner can buy a house & will result in 2 years of forced rental home.