House guarantor transfer

Jowo_2

But why is it a buy to let property if its actually their main residence? This is something I remain baffled about. Why make an investment in a rental property and then end up living in it yourself?! Bad business, that.

The basic thing is that your friend gets to keep a roof over their head that they evidentally can't afford to do on their own income, according to the lenders calculations, while you are exposed to the risk of picking up all the payments the moment they encounter a financial difficulty, such as the loss of their job.

If they can't afford to run their home then they should live within their means without exploiting their friends and relatives.

Perhaps selling up is best but to be honest, why concern yourself with their exposure to taxes and the like or even have to worry yourself about the options that they should be looking into. After all, they would be happy to take the profits in their business venture but seem equally happy to transfer the risk onto someone else.

A good friend will understand without rancour why you can't expose yourself to their personal financial risks. Walk away. Base your decisions on your appetite to pick up potentially large bills through their negligent business sense rather than because you feel sorry for them.

gauly

OK, now assuming it is their main residence - and not a buy-to-let as you said in your first post?? then the things that would concern me are:

- why can your friend not get a £60k mortgage without a guarantor? Is it their salary is too small (though they are still managing) or worse, is it because they are really bad with money and have CCJs etc.
- what is the approximate equity in the property? If £60k is virtually the full value of the house then again I would probably refuse because the risk is too big.

There are no taxes to pay when you sell a house which is your main residence so that shouldn't worry you.