Second Mortgage

Peter_L

Pincher wrote: »

BOE+0.5%?:money: Respect.

1. The solicitor should be able to reverse the Land Registry action, signature from your mother required.

2. Port the IF mortgage, before 1st April.

3. Remortgage the £130k house, raising £70k. If you want to sell soon, don't shoot yourself in the foot again by getting a mortgage with Early Redemption Penalty.

Big respect to you too :money: Pincher thanks for understanding and the advise - seems like I stirred up a hornets nest here about what I could/couldn't do with being 'gifted' parents house but I'm pretty sure what's been done is 100% and above board :T

Wasn't aware that solicitors could just 'undo' Land registry action ? But perfect if they could ... can't go back to the same solicitors though as it was Wolstenholmes and they have been closed down !!!:eek:

What happens when I go through the process of Transferring Title again as stamp duty is now payable for property above £125k now that 'holiday' is over ? Will I now be liable to pay 1% even though no money changes hands ?

Thanks for the reminder about the ERC on the other mortgage but knew this though !!!

Thrugelmir

I suggest you think carefully. As this is blatant avoidance.

Trying to avoid care home fee payments

Sometimes people deliberately transfer ownership of their assets to someone else in order to reduce what they pay in care home fees. If the local council believes this has happened they may assess you differently than in the normal assessment procedure:

• if assets were transferred within the six months before you moved into care, the council can recover the cost of your stay from whoever received the gift
• if the transfer happened more than six months before you moved into care, they can assess you as if you still own the assets

There is no time limit as to how far back the council can go to find out if you have given away assets to avoid care costs.

http://www.direct.gov.uk/en/CaringForSomeone/CareHomes/DG_10031523

Peter_L

Thrugelmir wrote: »

I suggest you think carefully. As this is blatant avoidance.




http://www.direct.gov.uk/en/CaringForSomeone/CareHomes/DG_10031523

Please read carefully - I AM NOT TRYING TO PULL A SCAM ... mum will be moving to a PRIVATE Housing association for the elderly - I will be picking up the bills !!! I get to move in to a bigger home and sell mine whilst mum gets to move closer to her friends.

Pincher

Peter_L wrote: »

Wasn't aware that solicitors could just 'undo' Land registry action ? But perfect if they could ... can't go back to the same solicitors though as it was Wolstenholmes and they have been closed down !!!:eek:

What happens when I go through the process of Transferring Title again as stamp duty is now payable for property above £125k now that 'holiday' is over ? Will I now be liable to pay 1% even though no money changes hands ?

Solicitor closed down IS a problem, as the original solicitor could have just say sorry, mistake, undo it. You can only try with a different solicitor. Both donor and recipient are available to sign any declaration, so there's hope.

The stamp duty is the least of your worries right now. If there was no stamp duty holiday, which is the exception anyway, you would have paid it already.

What's the lesson in all this? Sod all, except the old joke:

I am paranoid, but am I paranoid enough?

Thrugelmir

Peter_L wrote: »

Please read carefully - I AM NOT TRYING TO PULL A SCAM ... mum will be moving to a PRIVATE Housing association for the elderly - I will be picking up the bills !!! I get to move in to a bigger home and sell mine whilst mum gets to move closer to her friends.

Apologies.

VIGILANT22

Charterhouse wrote: »

If she lives 7 years it's fine.

OP what you need to check out is http://www.hmrc.gov.uk/inheritancetax/pass-money-property/exempt-gifts.htm#4 - the section on potentially exempt gifts, specifically.

Charterhouse...You are completely incorrect...the 7yr rule does not apply in deprivation of assets/care home fees.....

also ....

The new owner may become liable for Capital Gains Tax at some point in the future.

If you are found to have deliberately deprived yourself of capital you will be treated as having ‘notional capital’ to the value of the capital you disposed of.

Googling gifted properties etc, will not give you the answers required here........

VIGILANT22

[QUOTE=Pincher

you are so wrong on cgt in cases like this....:(

This thread is a typical example of people believe what they want to believe...The OP thanks everyone who comes down is his favour and believes it all true!!

Peter_L

Vigilant22 I wouldn't believe anything at face value - I put my trust in 'professionals' and look what happens - in the case of Wolstenholmes they were shut down for incompetence !!!

I'm relying on the kindness of those more knowledgeable than myself to see if they could 'advise me' so don't understand why some people would disrespect others judgements without providing solid grounds for doing so i.e. factual information provided by somebody qualified to do so. As I understand it (sorry if I'm wrong) but there isn't anybody who has posted here professionally qualified.

I am also bewildered by the number of people here who think that I am trying to do anything 'not above board' here and have categorically stated my reasons for doing what I have done and this was accepted by those 'professionals' who deemed it to be legal and above board enough to take the case on - that was what I paid to be advised what to do.

There are a couple of people such as Pincher who are genuinely trying to answer my questions without being judgemental.

If anybody who finds this post offensive and dodgy in anyway then please feel free to ignore this post and carry on with what you are doing.

If indeed it is found that what I am doing/asking is indeed illegal then please tell me how and why and I will delete this thread and speak no more of this matter.

Many thanks for all those who have contributed factually correct or otherwise

VIGILANT22

So much of the "advice" has been wrong....ie 7 yr rule, no CGT..in some cases some people have been responsible for CGT in these transactions..

You don't know who anyone is on here, with or without a signature....But if someone is qualified in a particular area they can tell who/what someone is not by the "advice" they post......

Pincher

I hope we are pooling our resources, whether anecdotal or direct experience. I have no problems with somebody pointing out my mistakes, misconceptions etc. because it means I will have learnt something useful.

There are so many potential loopholes and red tape, with unanticipated consequences, that even professionals don't know about them. When I bought my mother's house, she had to sign a letter to the lender to promise to move out, and I had to promise to throw her out. My solicitor couldn't believe it, either. Well, it was a good mortgage, so she is living on the streets, and I throw a coin in her hat when I pass by: just kidding;). I wouldn't be surprised if Intelligent Finance demanded a similar promise. This is to ensure that they can repossess the property without throwing out a sixty year old lady with residential tenure.

I did inherit a property when my father passed way, and my accountant told me the CGT is reset on inheritance, based on the valuation at the time of Probate. In Peter L's case, I did not not know it was a gift from a living parent, which is a different scenario, which I do not have knowledge of.

I think Vigillant22 and Thugelmir is coming from the angle of if the Inland Revenue considers a particular manoeuvre suspect, then they have powers to revoke the CGT exemption based on extra rules dealing with deliberate evasion. The care home fee angle was worth noting, even though it's not relevant in this particular case, as we found out, through discussion.

I think this was quite a good thread, overall.

A lot better than the How do I buy a house with no money threads.