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Sam
Sam, Accountant
Category: Tax
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I have a mortgaged second property (a leasehold flat) that

Resolved Question:

I have a mortgaged second property (a leasehold flat) that I bought to get my son into the housing market. He lived in it for a couple of years, but it is now let out.
How can I best hand on the benefits of this property to him, now that he is working. I want no personal benefit from this property? The mortgage is £186k, and the current market value is £320k.
Submitted: 2 years ago.
Category: Tax
Expert:  Sam replied 2 years ago.
Hi
Thanks for your question - I am Sam and I am one of the UK tax experts.
First you will need to establish whether this is permitted by the company with whom you have the mortgage (it may well be that this is in his name, but I am assuming not) and the mortgage company are unlikely to agree any form of transfer until such time the mortgage is also transferred or paid off.
However - then we have the issue of capital gains - the property was in your name - and is now valued at £320K - and this is the figure HMRC will use to calculate the capital gain, From this value (whether you sell or transfer) you can deduct the value when you bought 0 and also deduct the cost to buy (so legal fees and any stamp duty) and if you sell - then selling costs (again legal fees) and the costs for any capital improvements such as new bathroom new kitchen etc.
This is regardless of what you son may or not pay for it.
So if you could advise whether the mortgage will be paid off,or is the lender willing to transfer or remortgage with the remaining balance outstanding or whether your son with then live in it once its in his name - would be useful
Thanks
Sam
Sam and other Tax Specialists are ready to help you
Customer: replied 2 years ago.

Thank you Sam - will follow up with our mortgage provider to see if a transfer is possible.

Expert:  Sam replied 2 years ago.
Hi
Thanks for your response - this certainly has to be your first port of call.
let me know if I can be of any furtehr assistance, but if I could trouble you to rate the level of service I have provided (or click accept) it would be appreciated, as I then get credit for my time
Thanks
Sam