mortgage interest relief

Muttleythefrog

menher wrote: »

There is more to this than meets the eye. What property was secured by the parents for the £40,000 mortgage?

If it was secured on this house that you bought for £60,000, did you get a mortgage?

I think you need to set down exactly who owned what and when, who was living in the house when the £40,000 was taken out?

From what you have said you paid £60,000 for the property. Where then does the £40,000 come into the equation?

It's a year old thread but I agree. I can't rectify in my mind how someone (parents) can hold a mortgage on a property they've sold. If I were back in my old job my alarm bells would be drowning out the tittle tattle of colleagues. Maybe some significant details here are missing and I suspect dmg24 got closest to them. That in reality he bought the property off parents for £60k although it was worth probably about £100k... the parents therefore had the money to tie up mortgage.. private arrangement to pay additional £40k was agreed to be fair between him and parents and over time he paid that. Whether he needed a mortgage himself or not.. probably he did. The arrangement may have had financial benefit for him.. paying lower fees to transact, avoiding stamp duty etc. But arguing the purchase price was actually £100k would be a problem.. it'd be hard to prove and proving it may not be in his interest..lol