need simple mortgage advice for a complicated problem

gibby4

We had a mortgage on the house we are living in at the moment. My h was made bankrupt so we were forced to sell the house to raise capital on equity of house to pay creditors.

BUT. We sold our house to my brother-in-law who allowed us to live in the house. We currently get housing benefit to pay my BIL (mortgage payments).

The current market value of the house is £!20,000 and the mortgage outstanding is £50,000.

My BIL has agreed to sell/transfer the house back to us (or at least my son, who is the only one working and therefore eligible for a mortgage?) for £50,000. can somone tell me what is the simplist way of doing this?

is my BIL due for cgt. he took on a reidential mortgage although he personally has never lived with us.

homer_j_3

CGT applies to properties that are not your primary residences, I am not 100%certain whether the type of mortgage is relevant and he would be best speaking to customs and revenue about it to get correct advice if he is unsure.

If your son is prepared to do it would be best for him to visit a mortgage adviser to find the right product for his circumstances. Sorry I am not any more use but it should be possible and easily sorted through an adviser.

MortgageMamma

I cant think how your BIL can escape a CGT liability if he has never lived there and has his own residential mortgage. Your best bet would be to post this question on the taxes board. One way to get round it would be to add BIL's CGT liability to the mortgage amount and pay it back to him that way, even if its slightly more than the property value there are mortgages that can accomodate this.

Was really nice of your BIL to help you out like that, families should stick together