My daughter wants to buy my second home – how do we go about it?

Q I have two properties. One is in my sole name and my daughter wants to buy it. The market value last August was approximately £200,000. She has a deposit of £37,000. I am happy to sell the house to her for £200,000. She has sought mortgage advice and has been told that she can borrow the remainder of the mortgage. What are the best deals for a repayment mortgage? My current mortgage on the property is £147,000. How much capital gains tax would I have to pay? Please advise as to the best way of proceding. TG A You can find the best deals for a repayment mortgage by going to www.moneyfacts.co.uk but bear in mind that the very best rates won't be available to your daughter because she'll need to borrow more than 75% of the value of the property. As far as working out your capital gains tax bill goes, the amount of your outstanding mortgage has no place in the calculations. You take the value of the property when you sold it then deduct the price when you bought it and then deduct expenses incurred in buying and selling the property such as legal fees, estate agent fees and any stamp duty land tax. If the figure you arrive at is less than £10,100 (in the 2010-11 tax year), your gains are tax free. If the figure exceeds £10,000, you'll pay tax on any gain above that amount at a rate of 18% if you are a basic rate taxpayer, or 28% if you are a higher rate tax payer. Note that you must use the market value of the property at the time you sell it even if this is more than £200,000, so you'll need to get an up-to-date valuation done to be able accurately to calculate your capital gains. For the sale to go ahead, your daughter will need a solicitor to do the conveyancing for her and she'll also need to arrange her mortgage. You, too, will need a solicitor – you can't both use the same one.