Unmarried couple own a property as joint tenants. They have lived together for many years and have two children both of whom are of age. The property was purchased some 20 years ago at a cost of £260,000 and is now worth £550,00. There is no mortgage on the property.
They now wish to purchase a second property in joint names but wish to retain the present house until the younger child leaves home. One partner wishes to live in the second property as his main residence now and the other wishes to stay in the current property until the younger child leaves or the property is sold. She will visit the second property but will claim the current house as her main residence.
They will fund the second property purchase by means of a mortgage of roughly half the value of the current property. The problem is do they each have the right to claim full private residence relief on any disposal of either property and if not on what basis would this be calculated.