It is unusual for lenders to simply change the name of the person that they are lending money to, even after a credit check. There is no harm in asking though.

If you own two or more properties, you can nominate which one is to be considered your main residence. This must be done within 2 years of the purchase. If you don't tell your tax office which property to count as the main residence, they will look at the circumstances and decide for you. There is no CGT to pay on your main residence.

First of all, if you feel that your current mortgage deal is better than anything else you are likely to get (quite likely if you have had it for some time), then you should approach your current lender to see if it would be possible to organise a "transfer of equity". This will mean that the lender will credit check your tenant to assess their suitablility for the mortgage. If the lender is happy, it should be a fairly simple thing for you to come off the mortgage and him/her to go on it. This is a legal process and you will need a solicitor.

You will have no capital gains tax liability until 3 years after this property ceases to be your main residence.

If you decide to stay on this mortgage this may affect your ability to get another one as lenders will view it as an ongoing commitment, not just your half of it, but the whole mortgage. If you receive rent from someone living in the property and you aren't living in it then this will be counted as income which will be subject to income tax, however, your friend who owns the property and is still living there could rent a room and escape income tax down to the "rent a room" scheme. if you go to www.direct.gov.uk, they have loads of useful info around this subject.

If I was to decide to keep my half of the house and rent out the room, what tax implications would that have? I'm unsure as one of us on the mortgage would still live there as a main residence.

Zippeh,

what your tennant and friend need to do is go and find out if they can get a joint mortgage together... its all well and good saying he will take it over but can he get a mortgage or does he have enough money to buy you out .

"You cannot simply hand over responsibility for a mortgage. When you stop being an owner of the property, the mortgage should be either paid off or transferred to another property. The buyer will need to arrange his own finance."

Yeah this is what is confusing me, because my friend who I own the house with will continue to own half, and only my half will transfer to the other person.

Thanks for the note about the capital gains, that's a big help. My girlfriend and I have already made an offer for the house we want, how long can I count my current house as main residence so this doesn't cause a problem?

I would be inclined to use surveyors rather than estate agents but the main thing is that everyone is comfortable with the price and you arrive at it together.

You cannot simply hand over responsibility for a mortgage. When you stop being an owner of the property, the mortgage should be either paid off or transferred to another property. The buyer will need to arrange his own finance.

Capital gains tax is not payable if the property has been your main residence.

It is worth using conveyancing solicitors to help with the transaction. It is sensible for the buyer and seller to use different firms.

Currently I own half a property with a friend of mine and we have a tennant living with us as well. I'm looking to buy another property with my girlfriend very soon, and my tennant friend has offered to purchase my half of the house. I'm not sure exactly what is involved in this kind of transaction, and whether it's possible to do easily! This is my current understanding:

- Get my house valued by three independent estate agents.

- Agree a price with my tennant for the value of the whole house furnished as it is (furniture would stay because my friend and I bought it together when furnishing the house).

- My tennant would pay me half of what the house is worth over the mortgage value, and he would take over my responsibility for the mortgage.

So my issues really are, would I be liable for any capital gains tax? How easy is it to initiate this kind of procedure?

What's important for my friend who will remain joint owner is that we can keep the same mortgage term as we were very lucky and have a fantastic tracker deal at present.

Any advice you can give me will be most welcome!!

Thanks in advance.