I've had a couple of different responses to this question so hoping someone qualified to answer is on here...
We bought our house ten years ago, pre-kids, but the mortgage was in my name alone. DP had another property at the time and it worked out that it was easier for me to get the mortgage on my own - no affordability questions were raised by Bank no.1.
I'm now coming to the end of a 2 year deal with my current provider and can see that much better rates are available elsewhere. However Bank no.2 are saying that I don't qualify for the full amount based on affordability. As DP earns more than me I'm thinking of making a joint application instead.
My question is - what are the cost implications of doing this?
- I know I would need to add DP to the deeds, so I believe the solicitor's fees for this are around £500.
- I believe that stamp duty would have to be paid on the mortgage amount being transferred to DP. So if say 50% of the mortgage came to £175,000, we'd have to pay SDLT of £1,240.
- My main question is about Capital Gains Tax and whether he would have to pay it for the value of the property being transferred to him? A quick calculation shows me that even if it were just the mortgage amount it would be unaffordable at 20% - far more if it's calculated based on the property value.. However, presumably this wouldn't be an issue if we were married / in a civil partnership?
Our financial advisor has been next to no help on this. And of course the bank can't comment on tax / legal stuff outside of their immediate remit. Does anyone have personal or professional experience of this situation that can weigh in?
Thanks so much...