Greetings all Somersoft Forumites,
My first post - I've been lurking for a few months, but hope to contribute usefully with what little I've learned from here on.
I have a situation that I would like to ask your input on, if anyone call offer guidance.
My wife and I are partners in an IP with my sister, and my sister wants us to buy out here share this year. My sister wants to buy a PPOR, and we are quite happy to buy out her share of the IP. I would like to buy my sister's share in my name to maximise our -ve gearing.
My wife and I are joints tenants (25%/25% ownership) and together we are tenants in common with my sister (50%). We have one shared loan over the property.
I have two questions.
My first question regards title / stamp duty: Can my sister's share of title simply be transferred to me, or does the entire title have to be transferred? In other words, will I have to pay stamp duty on half the house value or its whole value?
My second question is, how will the bank (CBA) likely treat this? Will it want the entire existing loan paid out and a new one created, or will it permit me to take over my sister's obligation on the current loan? We have an IO loan fixed at 7.15% to May 2012.
While partnering up to buy an IP beyond our individual means 3 years ago made sense, the mechanics of buying out a partner are doing my senses in!
Cheers.
My first post - I've been lurking for a few months, but hope to contribute usefully with what little I've learned from here on.
I have a situation that I would like to ask your input on, if anyone call offer guidance.
My wife and I are partners in an IP with my sister, and my sister wants us to buy out here share this year. My sister wants to buy a PPOR, and we are quite happy to buy out her share of the IP. I would like to buy my sister's share in my name to maximise our -ve gearing.
My wife and I are joints tenants (25%/25% ownership) and together we are tenants in common with my sister (50%). We have one shared loan over the property.
I have two questions.
My first question regards title / stamp duty: Can my sister's share of title simply be transferred to me, or does the entire title have to be transferred? In other words, will I have to pay stamp duty on half the house value or its whole value?
My second question is, how will the bank (CBA) likely treat this? Will it want the entire existing loan paid out and a new one created, or will it permit me to take over my sister's obligation on the current loan? We have an IO loan fixed at 7.15% to May 2012.
While partnering up to buy an IP beyond our individual means 3 years ago made sense, the mechanics of buying out a partner are doing my senses in!
Cheers.