Buying into friends house

Luludiva

My boyfriend is buying a new house, his existing home is lived in by his ex-girlfriends nan who pays rent. I have agreed to put up a large deposit for the new house inexchange for a large part ownership of the old house. Do I have to buy the old house off of him through a solicitor or can I just have my name put on the deeds if and when we sell the house I dont want to be in a position owing capital gains I just want my original deposit back as in the meantime I will get a share of the rental income. Any ideas?

RAS

You ned to start with a valuation of the old house BUt this must take into account the legal status of gran. That could change as well, so be careful.

A much beter idea would be to have a share in the new house.

Doozergirl

Why don't you take a share in the new house instead? Because you want income from it? He can still pay you from his rental proceeds.

If there is a mortgage on the other house you'll need to be named on that as well as the deeds.

Luludiva

Thanks for that - think that might be a better plan, easier anyway and then when able to sell other house can have cash back and invest money elsewhere then! Concerned that if he got run over by a bus would lose my money!

PasturesNew

Either take a share in the new place, or no share at all.

It all sounds like a minefield even now .... and what if you fell out with him? Think of the nan!!

I'd take no slice in the new house whatsoever ... and if/when he married me it could be sorted then as to status etc.

simple2rent

I agree with Dozegirl ... it seems too complex taking equity stakes in both. If ever you split up it will be even more difficult to separate assets. That said there could be some tax advantages to sharing the rental property equity .... you will get two lots of capital gains exemptions on any profits when/if the property is sold.

Luludiva

How do they work out capital gains and once the second property is purchased is the first property (with nan) instantly liable for capital gains should we be able to sell it ? or is there a particular amount of time it has to be a second property for before it attracts capital gains? Why is life so complicated!:eek:

PasturesNew

Luludiva wrote: »

Why is life so complicated!:eek:

Because you made it so. I don't have bf's I am moving in with that already own a house with a nan as a tenant and who now want to buy a new house and get me to buy into the tenanted house ... all while living over the brush!

My life's simple. Get up, pay the rent, watch some TV, post here.

Luludiva

Fair enough ! :j