Jump to content

Gifting property - linked transactions?


Recommended Posts

Hi!

 

I own a BTL portfolio and I wish to gift a share with no money changing hands to my partner (we're currently unmarried) by a declaration of trust.

 

The share of each individual property's mortgage consideration is less than £40k. I understand that this would not create any SDLT for her (but keen to hear that is correct).

 

However, I'm unclear if this would be regarded as a 'linked transaction'. I have read that linked transactions are relevant for the simultaneous purchase of several properties from the same vendor, and could be treated as if they were all a single purchase (and hence attract SDLT).

 

Does anybody know if this is the case? This seems clear for a case where it's being purchased but I am gifting it.

 

Thanks!

Link to post

As it's a BTL portfolio with a mortgage, there would be a SDLT charge. There is a 'consideration', as your partner is taking on a 50% share of the mortgage. The SDLT would also trigger the 3% surcharge

As you are not married, there is no CGT exemption. So you may need to pay CGT

The transaction isn't a gift. Your partner is essentially paying you a sum of money for this transaction. That sum of money is equal to 50% of your total mortgage liability, because (s)he now has to pay back the lenders 

You would also need to speak to your mortgage lenders. See if they are willing to lend to your partner

 

_______________________________________________________________________________________________________________________________
Vin Gupta
Property Investor and Developer
UK Property Blog: https://evolutionblogger.com/article/uk-property-articles
Travel Blog: https://soulfultravelguy.com/

Link to post

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...