Joint Ownership – Advantages and Disadvantages
8:46 AM, 22nd May 2015, 11 years ago
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I haven’t posted before although I have been reading for some time and discovered all sorts of very useful stuff – great site!
My wife and I intend to invest in a BTL property shortly but are unsure of whether to put it in joint names. As my wife is a non-taxpayer we have always had savings accounts in her name to minimise tax.
Are there any disadvantages to this course of action for a BTL? Would her lack of other income make it be more difficult to mortgage the property in the future?
Thanks for your responses
Joe
4 comments on this article
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Member Since February 2011 - Comments: 3462 - Articles: 286
8:51 AM, 22nd May 2015, About 11 years ago
Hi Joe,
Apart from the taxable income being in your wife’s name another Pro is that lenders often have a maximum number of properties per applicant so if you have two individual applicants rather than one joint you can double the number with one lender.
Member Since March 2015 - Comments: 40
10:46 AM, 22nd May 2015, About 11 years ago
I think another pro is that if you did need to sell you could use both CG tax allowances.
So that would be 22K of CG allowance.
Member Since April 2014 - Comments: 2
12:24 PM, 22nd May 2015, About 11 years ago
Hi – you need a Declaration of Trust which allows you to own the property in joint names but maximise the tax advantage on rental income by allocating ownership 99:1 in favour of your wife. Hawkins Ryan Solicitors are good in this area (see lega tab)
Member Since January 2015 - Comments: 1
6:31 PM, 22nd May 2015, About 11 years ago
Reply to the comment left by “Eddie Marchant” at “22/05/2015 – 12:24“:
I hadn’t heard of that and will definitely get some further advice. Is this something that has to be done at purchase or can it be done later?
Is it expensive?