Posted on: 30th Aug, 2008 11:38 am
My partner & I own our house as tenants-in-common. My daughter & her husband occupy and rent one flat. They have offered to "buy in" to the house in order to build equity, share in the tax benefits of interest write-off, and share our mortgage burden. We are five years into a 30-year first mortgage that is set to escalate in 2009 and three years into a 15-year second at a fixed rate of 6.5% The total LTV right now is probably 65%. If we sell them a % of the deed, since they are family, will the whole property have to be re-assessed? (Current assessment is probably only at 50% of the value; we're in California) They would finance their portion and pay us, and we would pay off part of our mortgage? Otherwise, we could do a quitclaim deed, but would they be able to write off their share of the interest? Does the mortgage holder have a say in our ability to do the quitclaim? Thanks for your advice!
Welcome fogcitymom,
In order to write off interest, your daughter and her husband should have their names on the loan as well as the property deed. So, if they're interested to have their names on the loan and contribute towards the payment, the loan has to be refinanced.
"If we sell them a % of the deed, since they are family, will the whole property have to be re-assessed?"
I believe a reassessment isn't required as long as you remain one of the co-owners. You may get this verified from the office of the County Tax Assessor.
In order to write off interest, your daughter and her husband should have their names on the loan as well as the property deed. So, if they're interested to have their names on the loan and contribute towards the payment, the loan has to be refinanced.
"If we sell them a % of the deed, since they are family, will the whole property have to be re-assessed?"
I believe a reassessment isn't required as long as you remain one of the co-owners. You may get this verified from the office of the County Tax Assessor.