Hi everyone,
Happy new year to all!!I have a quick question. A friend of mine currently has a mortgage of $195K against a value of $300K and is looking at adding his girlfriend to the title of the house and she will assist him equally if not more in his home loan repayments.
My question is what sort of stamp duty cost will be applicable to this transaction? Is there any other costs i.e CGT?
He is looking at marrying this girl in 2 years so should he maybe wait till then and could seek some sort of exemption then?
Look forward to your responses.
Cheers
Lou
2 questions – is there going to be a recontribution of the capital to your friend by his girlfriend or is he putting her on the title for free (stamp duty may not be payable if it is a nil transfer for 'love')?
Cgt may apply if this is not his PPOR, also may apply if he is transferring at a profit (might get a credit if he transfers at a loss).
Will she accept her name on the title as tenants in common BF 99% girlfriend 1%?Hi there,
1. Yeah look he is putting her on the title for free. Can you transfer a property for love even if not married or living together?
2. This property has been his investment property for 4 years but is now moving into it.
Not sure if she will accept property transfer on a tenants in common basis.
1 – You'd probably need to ask the solicitor doing the transfer. Her ownership pre-marriage/moving in may jeopardise her chance of getting the FHB grant. She'd most likely have to buy before she moved in with him though.
One difference between Joint Tenants & Tenants in common is survivorship, JT gets the property upon the other parties death, whereas TIC are able to will their portion to someone else. What would be her issue (you can still be TIC at 50%).
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