H&W joint owners of property with a mortgage. Their daughter and her family live in property with them. They want to gift the property to daughter but she will pay off mortgage; they intend to continue living in the property.
If there is a GROB, on death will the value of the mortgage payment be netted off against the value of the H or W’s deemed interest in the property?
If improvements are made to the property resulting in a substantial increase in the market value at date of death vs value if unimproved, are H&W treated as beneficially interested in the actual property or the property notionally unimproved?
I can’t see anything in s102 FA 1986 that covers changes in the nature of the asset.