Advice pleeaase-joint name or solo name?

joopjoop

Hiya folks,
Some advice from you pro's please! We have just had an offer accepted on a flat. We have to buy it cash for reasons that are too long to go into but i 8 months time we plan on remortgaging it. We do plan on keeping the flat long haul..and remortgaging on a buy to let basis. Any ideas as to whether solo name or joint names at this stage?
Thanks

G_M

Whose cash is it?

Who do you want to be the owner?

Are you thinking of tax?

joopjoop

Thanks...
Bank of mum and dad..for the moment. Tax- will have to pay some but accountant said i can offset interest etc and as for whom do i want to own it,well,whichever is the most tax beneficial way.
Thanks

Fire_Fox

Have you spoken to your solicitor about how you safeguard your parents cash? Joint owners means if one dies the other automatically inherits, single owners is a risk if you split up. What has your accountant said about tax? We don't have access to information about your income. Even if you don't pay tax you still need to complete returns.
http://www.landregistry.gov.uk/public/guides/public-guide-18
http://www.hmrc.gov.uk/incometax/index.htm
http://www.hmrc.gov.uk/manuals/pimmanual/

xylophone

You (and a partner?) want to buy a flat but can't get a mortgage at the moment?

Your parents are lending you the money?

You then intend (alone? With a partner?) to obtain a BTL mortgage and repay your parents?

G_M

Parents are lending you the money? Whose parents? Lending who? What if you split up before youpay them back?

You need to consider every possible scenario however unlikely or unpleasant.

Tax? Impossible to advise without knowing your individualy financial circumstances

At the simplest level, if you both own, and the mortgage is joint, then once allowances have been offset against rental income you can split the propfit between you and be taxed seperately.

Which might be a good thing or a bad thing!