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.