Hi Somersoft,
This is my situation, I am in my early 20's and had saved up a healthy deposit. Due to still studying and not having a full time income I had difficulty gaining a loan but I wanted to do so in order to get in the property market a couple of years earlier and rent it out whilst studying and living at home. To do this when I finally purchased I took a loan out and had the title made tenants in common with my mum, we were told the minimum my mum has to have was 20%, so i have 80% and she has 20%. My mum has not financially contributed one cent in regards to anything to do with my property.
I know some of you will disagree with my choice to go about my purchase this way, but I am very happy I did it and have already learnt so much. My question relates to the process of removing my mum off the loan/title (which she is keen to happen sooner rather then later). I understand that she will technically be selling me her 20% and I will have to pay stamp duty and CGT on her behalf. The purchase price in August last year was 500k. Is this correct or is there a better way to remove her from the loan/title once I have payed the loan down a bit and have a greater income.
Also, as I have never lived in the property would I be able to claim FHBG in the future if I purchase again before living in my IP. Or can I claim it later?
Thanks in advance.
This is my situation, I am in my early 20's and had saved up a healthy deposit. Due to still studying and not having a full time income I had difficulty gaining a loan but I wanted to do so in order to get in the property market a couple of years earlier and rent it out whilst studying and living at home. To do this when I finally purchased I took a loan out and had the title made tenants in common with my mum, we were told the minimum my mum has to have was 20%, so i have 80% and she has 20%. My mum has not financially contributed one cent in regards to anything to do with my property.
I know some of you will disagree with my choice to go about my purchase this way, but I am very happy I did it and have already learnt so much. My question relates to the process of removing my mum off the loan/title (which she is keen to happen sooner rather then later). I understand that she will technically be selling me her 20% and I will have to pay stamp duty and CGT on her behalf. The purchase price in August last year was 500k. Is this correct or is there a better way to remove her from the loan/title once I have payed the loan down a bit and have a greater income.
Also, as I have never lived in the property would I be able to claim FHBG in the future if I purchase again before living in my IP. Or can I claim it later?
Thanks in advance.