On transferring your sister’s “share” to your name there may be stamp duty land tax to pay, and your sister may face a capital gains tax bill. The alternative to having your sister as joint mortgage holder would be to ask her to be a guarantor, which means promising to pay the mortgage if you can’t.
Do you have to revalue a house if you stay with the same lender?
If you are happy to stay with the same lender you shouldn’t need to have the house revalued. But the property will need to be revalued if you want to remortgage with a new lender at the end of two years.
Can a family member help you buy a house?
This kind of arrangement is usually used for parents, but there are lenders who will consider any close family relative with sufficient income to be able to make this kind of financial promise. The advantage of having your sister as guarantor is that she doesn’t have to be named as a joint owner of the property, so the tax issues don’t arise.
When do you need to revalue a property for remortgage?
But the property will need to be revalued if you want to remortgage with a new lender at the end of two years. But before you go down the joint mortgage route you need to be aware that most mortgage lenders require all names on the mortgage deed to appear at the Land Registry as joint owners.
What kind of mortgage can I get for my Sister?
For just £17.50 more than the £500 you plan to pay your sister, you could get a mortgage of £75,000 with an interest rate of 3% and a term of 15 years. And your sister would get a cash lump sum of £75,000 and no worries.
What happens if I pay my sister £75, 000?
If she transfers the property into your sole name before you’ve paid her the full £75,000, she’s also taking a risk that, as she would no longer own any of the property, she would have no control over it and couldn’t force you to pay what you owe her.
Is there any tax involved with paying off a mortgage?
My dad has offered to pay off my £140,000 mortgage. Very nice i think But is there any tax involved like income tax?
