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Adding owners to property
ukbidz
Posts: 7 Forumite
Have a bit of a dilemma.
We have rented our property for the last 7 years from my partners parents. (effectively paying the mortgage) Her parents got the house from her grandparents, and partners parents bought out the two sisters on the property.
We have been wanting to purchase the property but got nowhere. We have now agreed to become co owners on the property eg Myself, My partner, and partners parents.
Is this possible? Does money have to change hands? This is not the parents main residence, it's ours.
Can this be done without huge financial implications?
We would like to go ahead and become co owner and borrow against the value of the house (now mortgage free) for upgrades and extension.
Before I seek a solicitor can anyone offer any advice as to the ins and outs of this?
Many thanks
Allan
We have rented our property for the last 7 years from my partners parents. (effectively paying the mortgage) Her parents got the house from her grandparents, and partners parents bought out the two sisters on the property.
We have been wanting to purchase the property but got nowhere. We have now agreed to become co owners on the property eg Myself, My partner, and partners parents.
Is this possible? Does money have to change hands? This is not the parents main residence, it's ours.
Can this be done without huge financial implications?
We would like to go ahead and become co owner and borrow against the value of the house (now mortgage free) for upgrades and extension.
Before I seek a solicitor can anyone offer any advice as to the ins and outs of this?
Many thanks
Allan
0
Comments
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It is possible and money doesn't have to change hands.
your partners parents could find they have to pay CGT as they are selling something that is not their principal private residence. There are various reliefs available but the calculation is based on the difference in price between when they acquired it and the value when they sell (half?) of it.
If you intend raising a mortgage then either you would all have to be party to the mortgage or some lenders will accept the oldies signing a waiver.
There are also inheritance issues, it could be considered a gift with reservation and be part of their estate if they didn't survive 7 years. also if anyone needed care they could be accused of deliberately passing on assets to avoid paying for care. You may also want to consider any objections by siblings if you are not paying full value for it.
Basically it can be done but you need to seek legal and financial advice.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
I think the best option is to seek advice on this from a solicitor who knows what they are talking about.
They should outlive the 7 years as they are only 55.
Think it's scandalous with the housing situation the way it is that TAX is unavoidable no matter which way you look at it.
The government should be done for being crooks. There are plenty of people in prisons who have done far less!!0
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