Two family properties in my name, need to buy own home - tax/mortgage implications?!

CKhalvashi

scottishblondie wrote: »

I'm pretty sure that as the property is solely in her name, the rent counts as her income and so she is liable to pay the tax.

Not quite. It's the Landlord's concern; if OP is renting for nothing, then brother is charging more, this is not her problem.

We've got a property rented through a Housing Association at the moment, and they're charging the tenant £31 a week more than they're paying us. This £31 a week is not my problem for tax purposes.

Tixy wrote: »

Did mother take any legal advice about the £30k gift to you? Does she understand the implications of this re possible inheritance tax and deprivation of assets (if she needed benefits/care etc).

I'm also thinking that it may be a chargable gain on sale of the property, especially as the sale would be deemed premature for a profit in this circumstance (with the £30k being a non-refundable gift)

OP, you really need to take advice on this one.

CK

notanewuser

Star99 wrote: »

What if he has been renting for the past two years? What would the tax deadline be for 2011-2012?



He was at work and couldn't dial an 0845 number.
We will both be going to the bank together so we can discuss the best way to transfer the mortgage to my brother.

31st January 2013. You'll need 1.5x the tax due as they take half of next year's payment at the same time.

You CANNOT transfer a mortgage. Your brother will have to take out a new mortgage (meeting all the lending criteria) and then pass the money to you to pay off your mortgage. Who will be covering any early repayment charges due (can run into thousands)?

gfplux

Star99 wrote: »

Unfortunately, it is all true. I wish it wasn't but it is.
I didn't really think about it too much at the time as I trusted my brother.

Hello Star,
I am sorry I thought the story was untrue. You are proving it is and I think we all want to help you.
You have known your brother all your life. If he is now acting strangely and his character has changed he may be having problems that you are unable to imagine.
IF HE HAS ALWAYS BEEN TRUSTWORTHY then he may have drug, drink or gambling problems. Or even all three with gangs threatening his life.
Perhaps, and only you know your brother, the Police MIGHT be the best place to find help.

Let us know what happens at the bank with brother2, You might find the meeting uncomfortable.

immie

Sorry I haven't had time to read the whole thread.
I think you should seek legal advice if you haven't done so already. The house in your name but paid for by your brother, you are the sole legal owner BUT because he paid the whole sum he's the beneficial owner, in law you are holding the property on trust for him. If you sell it you have to account to him the proceeds of the sale etc.
So I wouldn't suggest selling it without consulting a solicitor first...

neas

I can totally believe this could be true I used to live in bradford and this kinda keep it in the family business was rife amongst immigrant groups as this was inline with dealings back home.

It does seem fraudulent and probably criminal so threatening brother may be dangerous. Ususlly if this wad sorted through family... op should grt advice get clued up and undo mess internally keeping cash aside for your liability. Then dont mix business and family.

cte1111

How's it all going Star? Hope you're managing to get a few things sorted.