TiC 50/50. If we move to 90/10 via Form 17 will mortgage int still be 50/50 or 90/10?

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    TiC 50/50. If we move to 90/10 via Form 17 will mortgage int still be 50/50 or 90/10?

    HI folks, I'm new here, and I am struggling to find a definitive answer to my question above. My husband and I would like to move from 50/50 Tenants in Common on a BTL to something that is more advantageous in terms of tax. We don't know how to crunch the numbers to determine the best future split, because while we understand that expenses eg council tax, repairs, etc will all divided according to the Form 17 future split, does the same apply to the mortgage or does it remain at 50/50 given that we are both jointly responsible for the whole of this loan in the lender's eyes regardless?
    Many thanks, I really appreciate any wisdom on this.

    #2
    From the tax point of view you have to split both income and expenditure in the same way. One person cannot claim all the expenditure and another the income. That includes the mortgage.

    Who actually pays the mortgage is a private matter between you.

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      #3
      You are both jointly responsible for all of the mortgage from the lender's perspective - it's a joint and several arrangement.
      That has no impact on the tax allowances, which are, as above, split in parallel with the income.

      Note that the lender's terms and conditions may require them to agree to any change in ownership, title or beneficial.
      When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
      Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

      Comment


        #4
        Clarity at last!! Thank you both so much, I really appreciate your responses.

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