Can anyone help with this...........
We have a family member that would like to get into the property market by purchasing four fifths of our principle residence. We would remain one fifth owner as an investment (counting on that equity will continue to grow). There would be no income from this one fifth share but this property has potential for future development.
We would like to purchase another house but I`m not sure how this arrangement may benefit us. Does the equity count towards our next property? Does their four fifths go directly to our next property as a down payment or do we have to pay our existing mortgage before we purchase another property? I believe our mortgage is tranferable....Should we remain on title as joint owners or do we just have a legal agreement that we have a share? I assume that once this property is sold we will have to pay capital gains on any increase in equity?
Looking forward to hearing from anyone that may be able to offer some insight into this............
We have a family member that would like to get into the property market by purchasing four fifths of our principle residence. We would remain one fifth owner as an investment (counting on that equity will continue to grow). There would be no income from this one fifth share but this property has potential for future development.
We would like to purchase another house but I`m not sure how this arrangement may benefit us. Does the equity count towards our next property? Does their four fifths go directly to our next property as a down payment or do we have to pay our existing mortgage before we purchase another property? I believe our mortgage is tranferable....Should we remain on title as joint owners or do we just have a legal agreement that we have a share? I assume that once this property is sold we will have to pay capital gains on any increase in equity?
Looking forward to hearing from anyone that may be able to offer some insight into this............