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Selling my share of a home.

Several years ago, my father died. My sister and I inherited the house. For five years of so, I let my siste and her daughter stay in the house whilst my neice was growing up. She's now old enough to leave so it's time for me to think about using my half of the captial to buy *my* own home.

I don't have any other significant savings so what options are available to me to obtain my own home.

Assume the price of our home to be £170,000.

So far as I can work out we've got three choices...

1). We sell the house and my sister finds somewhere smaller. 2). She gets a second mortgage and gives me half the money. 3). Come up with some arrangement so that she pays for an equivalent %age of my mortgage.

Well, 1 is my preferred option but I'm sure it's not my sisters. 2 is my second favourite but a) is this possible, b) is it worthwhile. 3 is my least favourite as then my home is at the whim of my sisters capability to pay. Also, am I right in thinking that we'll end up paying far more interest doing it this way?

Have we got any other options and/or could anyone care to comment on the pros and cons of the options I've mentioned here?

Reply to
Dale Walker
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Do you have a CGT liability to fund?

Reply to
Doug Ramage

Dear Dale , in my experince in these types of situations , i reccomend a person to layout some newspaper and drop a big brown log into the paper , roll the paper up , goto your sisters half home put the rolled up turd on the doorstep , set on fire , ring the bell and then immediatly run away (the running away bit is the fun bit IMHO)

I'm sure you will of read or heard of similar advice in the past , based on my past experinces this has always worked for me.

P.s use plenty of paper , you really need a good long burn.

Reply to
Just Wondering

Come again?

Reply to
Dale Walker

I'm confused. Would that be for choice 1, 2 or 3?

In any case, my sister's dog attacks newspapers on site, especially if near the front door. He's also well known in the area for eating faeces. I've no idea if he prefers them cooked or raw though.

Reply to
Dale Walker

How much has the house increased in value over those "several" years?

Reply to
Troy Steadman

CGT = Capital Gains Tax.

During the past 5 years which you mentioned, it is very likely that the property has gone up in value.

But since it does not seem to be your main residence, you could have a tax liability on the sale of your half share. Have you allowed for this in your calculations?

Reply to
Doug Ramage

I'm currently living in rented accommodation and do not own any other property so I was under the assumption that in tax terms, the house would still count as my main residence. I certainly do not own any other property that could count as a main residence.

After reading the info on the IR website I'm still confused. In some sections it says a 'main residence' is simply the place where I live. In others it says 'Ownership is a requirement for a dwelling house to be a residence'.

Ah well, ce-la-vie

In any case, I believe the increase in value is around ?11,000.

Reply to
Dale Walker

It would not count as your main residence for CGT purposes because it's not your residence (i.e. you do not reside in it, and never have done). The word "main" is there simply to determine which of several residences you (might) own would be the one which would count as deserving of PPR relief from CGT. Since your actual main residence is not an owned residence, you cannot get relief.

If that's the total increase, of which you and your sister each have a half share, then there is no problem anyway, assuming you are not realising any other capital gains in the same tax year as you're proposing to sell. Even if your share of the gain is £11k, taper relief should bring that down to a bit over £9k and since you have an allowance of £8200 (or £8500), only a few hundred pounds of the gain would actually be taxable, so you can relax.

Reply to
Ronald Raygun

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