My mum brought a house for around 400k outright but was short 70k so my sister got a loan for the amount and then went onto the house title..we all live together but my sister is now moving out and wants me to take over the loan amd she want to get off the title..
Firstly: what is the cost to just remove her and leave my mum on the title?-is there stamp duty involved?
2nd: if i get on the title what will the costs be?? Will it be calculated only on the 20% my sister put in if i was to do tenant in common or the full market value??..i also work fulltime and have an investment property amd never applied for FHOG and i have a pension card and so does my mother...
Will us both being on a pension card wipe out the stamp duty ?? If i am only being added to the title..
We will have to refinance the 70k borrowed so the loan is in both our names or just mine
Your question highlights the issue of joint family ownership of property.
I would recommend that yo first speak to a solicitor regarding the stamp duty issue, or if you want a more proactive role, call your state office of revenue (stamp duty office) and ask them.
Next, once you have answers around stamp duty and whatever that may cost, visit your bank and ask if they will help with financing the change.
That will depend on your ability to service the new loan from your income. Depending on your mum's age, if title was to be just in her name she may qualify for a reverse mortgage which could be used to pay out your sister's loan.
Hope this helps.
Before doing anything see a broker if you can get a loan on your own for the amount remaining on your sister's loan plus approximate stamp duty costs. You will incur some stamp duty as you are effectively buying your sister out i.e. at 20%. Get a pre-approval home loan in place.
From here : 1. See a conveyancer to find out exactly what the ownership proportion is. 2. A valuation will need to be organised to value the property for stamp duty 4. Draft up a transfer of sale. 5. Take the pre-approval to formal 6. The loan will be transferred into your name and sister will be removed from the title.
This sounds like a call to the state revenue office about the fhog. Regarding taking one none marital party off and another on would incur stamp duty. The amount to pay would be dependant on the title ownership split. I'd generally recommend talking to a conveyancer but as a general rule if you are buying 20% from your sister (her share) then your stamp duty would be 20% of the stamp duty payable as if sold at market value. The state revenue office is very easy to talk to and can give good advice are the fhog. As dates of purchase of the existing property are important.