Splitting property and ownership but not loan

Discussion in 'Loans & Mortgage Brokers' started by housechopper2, 9th Jul, 2018.

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  1. housechopper2

    housechopper2 Well-Known Member

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    If a mortgaged property is owned as tenants in common 50/50, then subdivided into two, can the ownership then be structured so each person owns one dwelling while keeping the mortgage 50/50?
     
    housechopper2, 9th Jul, 2018
    #1
  2. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    The change in ownership structure might have stamp duty and capital gains tax implications. This depends on the circumstances and best to get specific advice on this.

    To split the loan as described, the loans would need to be refinanced specifically to that structure.
     
    Peter_Tersteeg, 10th Jul, 2018
    #2
  3. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Yes - with a reapplication.
    To subdivide the mortgagee must produce the title so their permission is needed.

    Watch out for GST, CGT and stamp duty too
     
    Terry_w, 10th Jul, 2018
    #3
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