Selling 50% of my house

64
Posted 11th Jul
Hi

I own a house worth approx £250k and it still have mortgage on 50% of the house.

Is it possible to only sell only 50% of the house? Specifically the part with the mortgage?

Because later I would like to gift the other non-mortgage half to a family member
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Maybe you can do some sort of reverse co-ownership but I would assume you would then have to rent that half off them?
Or sell the whole house and buy them a 125k house cash
Haz_1911/07/2020 23:58

Or sell the whole house and buy them a 125k house cash


Would Like to keep the house specially
Think you need to provide more information. Is a new partner moving in and you want to protect your equity?
daniellndn12/07/2020 00:02

Think you need to provide more information. Is a new partner moving in …Think you need to provide more information. Is a new partner moving in and you want to protect your equity?


No one is moving in and neither it is about tax avoidance..

It's a matter of wanting to keep the property within the family
ali1319612/07/2020 00:03

No one is moving in and neither it is about tax avoidance.. It's a matter …No one is moving in and neither it is about tax avoidance.. It's a matter of wanting to keep the property within the family


Can you not assign it to them in your will?
ndyanem12/07/2020 00:06

Can you not assign it to them in your will?


No I would like to get rid of it on my name
Edited by: "ali13196" 12th Jul
You can go to a solicitor and allocate whatever % of ownership you wish to a property. e.g 90% you and 10% someone else. Mortgage is separate. I have done something like that myself.
Edited by: "daniellndn" 12th Jul
ali1319612/07/2020 00:06

No I would like to get rid of it on my name


Then you will need to hire a solicitor get a change of deed, sell the property to a named family member for a small amount of money. However they would need to get a Mortage on the property and you don’t own it 100%
daniellndn12/07/2020 00:07

You can go to a solicitor and allocate whatever % of ownership you wish to …You can go to a solicitor and allocate whatever % of ownership you wish to a property. e.g 90% you and 10% someone else. Mortgage is separate. I have done something like that myself.


How much did the process cost?
you would have to jointly own the property with the other owner. who do you plan to sell the other part of your house to?
ali1319612/07/2020 00:09

How much did the process cost?



Roughly £1k I think it was.
ndyanem12/07/2020 00:08

Then you will need to hire a solicitor get a change of deed, sell the …Then you will need to hire a solicitor get a change of deed, sell the property to a named family member for a small amount of money. However they would need to get a Mortage on the property and you don’t own it 100%


Sell for a small amount? Wouldn't that trigger tax agency? Can't I just gift the 50%
ndyanem12/07/2020 00:08

Then you will need to hire a solicitor get a change of deed, sell the …Then you will need to hire a solicitor get a change of deed, sell the property to a named family member for a small amount of money. However they would need to get a Mortage on the property and you don’t own it 100%


i don't think you can sell a property for a fictional low sum, without raising enquiries. in particular HMRC will think you are up to something dodgy.
mutley112/07/2020 00:12

i don't think you can sell a property for a fictional low sum, without …i don't think you can sell a property for a fictional low sum, without raising enquiries. in particular HMRC will think you are up to something dodgy.


It clearly is dodgy to remove a name from a property with a hefty Mortage tho, either way multiple questions will be raised however you do it. That’s why I suggested leave it in the will. You can set clauses like can’t sell the property for ex amount of years
mutley112/07/2020 00:10

you would have to jointly own the property with the other owner. who do …you would have to jointly own the property with the other owner. who do you plan to sell the other part of your house to?


The same person I gift the 50% to
ndyanem12/07/2020 00:13

It clearly is dodgy to remove a name from a property with a hefty Mortage …It clearly is dodgy to remove a name from a property with a hefty Mortage tho, either way multiple questions will be raised however you do it. That’s why I suggested leave it in the will. You can set clauses like can’t sell the property for ex amount of years


Is Not really an issue, have Nothing to hide
ali1319612/07/2020 00:15

Is Not really an issue, have Nothing to hide


So continue on the Mortage and keep the house?
ali1319612/07/2020 00:14

The same person I gift the 50% to



You Will need to clarify whether it’s 50% of today’s price or 50% of future sale price. The person you are gifting will benefit from property rises. You’ll have to consider if that’s fair on who is paying mortgage.
ndyanem12/07/2020 00:15

So continue on the Mortage and keep the house?


It's a bit complex to explain but let's just say ' I want to walk away' lol and give the family what they want
Edited by: "ali13196" 12th Jul
daniellndn12/07/2020 00:20

You Will need to clarify whether it’s 50% of today’s price or 50% of fut …You Will need to clarify whether it’s 50% of today’s price or 50% of future sale price. The person you are gifting will benefit from property rises. You’ll have to consider if that’s fair on who is paying mortgage.


This confused my solicitor who wasn’t financially minded.
ali1319612/07/2020 00:14

The same person I gift the 50% to


that makes it easier as it is a family member. in that case, you would have to add them on as a joint owner on the property deed. you would have to get the mortgage company to accept them as joint mortgagee on the property. you won't be able to get rid of the mortgage as you would be considered as joint mortgagee since you both own 50%.

however, as they are your family member, you would be able to trust them to pay the mortgage, so it all bases on trust.

if that family member already owns a property, then they would have to pay 3% stamp duty on the 50% purchase as the covid stamp holiday doesn't apply to second property purchase i believe.

the complication is going to be the gifting as you are still considered to be jointly liable for the mortgage, i am uncertain how the bank would view you giving your half of the property together with the attaching mortgage to your family member, who is a joint mortgagee. that is a question for the bank i think.

unless of course your family member is buying his 50% with cash, then it makes things simple.
Edited by: "mutley1" 12th Jul
daniellndn12/07/2020 00:22

This confused my solicitor who wasn’t financially minded.


Itll be 50% today's market and get valuations from local estate agents
ali1319612/07/2020 00:21

It's a bit complex to explain but let's just say ' I want to walk away' …It's a bit complex to explain but let's just say ' I want to walk away' lol and give the family what they want


It should be what you want and that can be done in a will. What your trying to achieve is complex, can be costly and depending on the age and finical situation of the other parties could be an issues for them obtaining a Mortage
mutley112/07/2020 00:27

that makes it easier as it is a family member. in that case, you would …that makes it easier as it is a family member. in that case, you would have to add them on as a joint owner on the property deed. you would have to get the mortgage company to accept them as joint mortgagee on the property. you won't be able to get rid of the mortgage as you would be considered as joint mortgagee since you both own 50%.however, as they are your family member, you would be able to trust them to pay the mortgage, so it all bases on trust.if that family member already owns a property, then they would have to pay 3% stamp duty on the 50% purchase as the covid stamp holiday doesn't apply to second property purchase i believe.the complication is going to be the gifting as you are still considered to be jointly liable for the mortgage, i am uncertain how the bank would view you giving your half of the property together with the attaching mortgage to your family member, who is a joint member. that is a question for the bank i think.


No I don't want a joint mortgage, I'd like for them to completely take over the mortgage
ali1319612/07/2020 00:29

No I don't want a joint mortgage, I'd like for them to completely take …No I don't want a joint mortgage, I'd like for them to completely take over the mortgage


this is not possible as the bank will not give a mortgage to them if you also own the property. unless you own 1% and they own 99%, which is not what you are proposing here.
mutley112/07/2020 00:32

this is not possible as the bank will not give a mortgage to them if you …this is not possible as the bank will not give a mortgage to them if you also own the property. unless you own 1% and they own 99%, which is not what you are proposing here.


I'm happy to sell it to them, but in a way where I can gift the 50% I outright own
ali1319612/07/2020 00:33

I'm happy to sell it to them, but in a way where I can gift the 50% I …I'm happy to sell it to them, but in a way where I can gift the 50% I outright own


as i have said. the way you want it is fine to split on the deed but the mortgage is going to the problem and i do not think there is a way round this. so the answer to your original question, and what you want to do in its entirely, is NO. you can't.
mutley112/07/2020 00:35

as i have said. the way you want it is fine to split on the deed but the …as i have said. the way you want it is fine to split on the deed but the mortgage is going to the problem and i do not think there is a way round this. so the answer to your original question, and what you want to do in its entirely, is NO. you can't.

birdandco.co.uk/sit…age

According to this it is
ali1319612/07/2020 00:36

https://www.birdandco.co.uk/site/blog/conveyancing-blog/can-you-transfer-ownership-of-a-house-with-a-mortgageAccording to this it is


You can. I have done similar roughly a year ago. Although you understandably are keeping parts private so left reading between lines.
Edited by: "daniellndn" 12th Jul
ali1319612/07/2020 00:36

https://www.birdandco.co.uk/site/blog/conveyancing-blog/can-you-transfer-ownership-of-a-house-with-a-mortgageAccording to this it is


you haven't understood the mortgage transfer comment in that link. i have already said that you can transfer 50% to your relation but he needs to be a joint mortgagee as you still own 50% of the property. you are not tranferring the whole house to him.
daniellndn12/07/2020 00:39

You can. I have done similar roughly a year ago. Although you …You can. I have done similar roughly a year ago. Although you understandably are keeping parts private so left reading between lines.


Thankyou, to put it in simple terms, I just want to walk away from every thing but on good terms.

Is it a matter of selling the 50% then gifting the other 50% to the family member?

Or is it transfer 50% mortgage to an eligible person and gifting the 50%

Or is it transferring the 100% to an eligible peeosn to take over the mortgage?
mutley112/07/2020 00:40

you haven't understood the mortgage transfer comment in that link. i have …you haven't understood the mortgage transfer comment in that link. i have already said that you can transfer 50% to your relation but he needs to be a joint mortgagee as you still own 50% of the property. you are not tranferring the whole house to him.


Could they purchase 50% of me? Then I gift the rest?
You will need the agreement of the mortgage company regardless. So that is your starting point.
ali1319612/07/2020 00:42

Could they purchase 50% of me? Then I gift the rest?


this may be possible if you gift the property at the same time as he buys his share. as then the bank has one owner and one mortgagee, which is what they like to have. i do not think they will allow two equal joint owners and only one mortgagee.
You can partly sell the house yes but gifting is going to sound like money laundering.
The house when half is sold off the deeds will be in your name and the news buyer. You might need permission from this new buyer to pass the house to your relative.
If the house is worth £250k, you could sell it to them for £125k. They raise a mortgage or pay cash for the £125k, the equity in it is what you have gifted.
ali1319612/07/2020 00:41

Thankyou, to put it in simple terms, I just want to walk away from every …Thankyou, to put it in simple terms, I just want to walk away from every thing but on good terms. Is it a matter of selling the 50% then gifting the other 50% to the family member? Or is it transfer 50% mortgage to an eligible person and gifting the 50% Or is it transferring the 100% to an eligible peeosn to take over the mortgage?



Think I may have given you false information as in both situations I’ve had all parties on deeds remained on mortgage in name so didn’t theoretically walk away from the debt liability which I guess is your wish.
Hope you find a workable resolution though.
haybr12/07/2020 08:26

If the house is worth £250k, you could sell it to them for £125k. They r …If the house is worth £250k, you could sell it to them for £125k. They raise a mortgage or pay cash for the £125k, the equity in it is what you have gifted.


That's the answer, you can legally sell your house for any price you choose as long as you clear your loan (mortgage). If the relative doesn't live in the house and then sells it they may have to pay capital gains tax on the full market value.
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