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

Star99_2

If my brother comes round tonight, which I believe he will as he rang me 3 times before I answered, shall I mention that I want any taxes to be paid before I pay him any money, or should I wait until I've seen a solicitor and an accountant?

Justicia

Star99 wrote: »

If my brother comes round tonight, which I believe he will as he rang me 3 times before I answered, shall I mention that I want any taxes to be paid before I pay him any money, or should I wait until I've seen a solicitor and an accountant?

Personally, I would obtain advice first (and urgently), before letting him know that you are investigating - otherwise things may start being hidden or become difficult to obtain.

gfplux

I your first post you said,
"2 years ago, my brother purchased a flat but in my name as he already has 2 houses in his name and I've never had any.!
He paid for the flat, 100% in cash.!
He has also been renting the place out I have now found out.!
My brother is now planning to transfer the house into someone else's name but at a price that's 150% more than the original purchase price.!"

You have to ask yourself why having two houses already it was difficult for him to own a third house.
Paying in cash is also interesting.
This is not normal and many strange and illegal possibilitys do spring to mind.
I think you need to calm down and not do anything that might end with your brother having discussions down the police station.
You need to tell him all your fears and you want all this to be undone as quickly as possible. You perhaps will have to engage a solicitor to act for you and who will only be interested in sorting it out and not informing the authority's.
Frankly what your husband will/does think of all this I can not imagine. You have put not only yourself in a very, very strange situation but also him and your new baby.
I hope good luck will be on your side.

cte1111

Re your Mum's (your) house, if you lived in the house when you took the mortgage out, then you will not have any CGT to pay. You will have Principal Private Residence relief for the period that you lived there, plus the last 3 years of ownership. As it is less than 3 years that you moved out, the whole period of ownership will be covered by PPR.

So that's one less small worry. However, as you want to get a mortgage for a home of your own, you need to 'sell' this house. I would give your Mum and brother an ultimatum - either your brother gets a mortgage and buys the house from you, or you put it up for sale. If you can't do this, then you and your husband will have to give up the idea of your income counting towards a joint mortgage.

The other flat, the gain is currently looking about £20,000. If you transfer the flat into joint names with your husband, then 'sell' it to whoever at the current market value, the gain will be under your CGT limits, e.g. you will both have a capital gain of £10,000, the limit is £10,600 so you will have no tax to pay.

You will still need to declare these gains on your tax return and claim the appropriate relief. It sounds like using an accountant would be a good idea.

samehat

Did your brother come round and are you okay? I'm sorry I have no advice but I have read your comments and I hope it all works out for you.

Mojisola

Justicia wrote: »

Personally, I would obtain advice first (and urgently), before letting him know that you are investigating - otherwise things may start being hidden or become difficult to obtain.

gfplux wrote: »

You need to tell him all your fears and you want all this to be undone as quickly as possible.

Please don't let your brother know that you've realised you're being used by him! Follow Justica's advice and gather as much information as you can and get advice about your own position.

oh_know

Wow I feel for you' you have been used and abused' use your baby as an excuse to not see or speak to your so called brother, ie say your tired/headache etc. Buy some time and act dumb'
Ask for paper work do the land registry check mentioned on an earlier thread
Your bro will try and fob you off and might say he can magically fix everything but he is obviously not to be trusted
Go to solicitor as this is too complex, likely illegal and certainly dodgy

Don't stress from the sounds of it you have been played and should be well compensated by your brother or by the legal system - ie if property is in your name then that is your protection and ace card, its time for pay back

JimmyTheWig

RAS wrote: »

What is brother 1's line of work?

Trying to think of a line of "work" which would mean the brother has plenty of cash that he appears to want to invest without the authorities knowing he has it.

Only one comes to mind, I'm afraid.

gfplux wrote: »

I think you need to calm down and not do anything that might end with your brother having discussions down the police station.

I disagree. I think the police station is the place that he needs to be right now.
Whether the OP can do that to her brother (should do, after all this grief) is a different question.

JimmyTheWig

[Though saying that, my money's on this being the last that we hear from the OP.]

Star99_2

gfplux wrote: »

I your first post you said,
"2 years ago, my brother purchased a flat but in my name as he already has 2 houses in his name and I've never had any.!
He paid for the flat, 100% in cash.!
He has also been renting the place out I have now found out.!
My brother is now planning to transfer the house into someone else's name but at a price that's 150% more than the original purchase price.!"

You have to ask yourself why having two houses already it was difficult for him to own a third house.
Paying in cash is also interesting.
This is not normal and many strange and illegal possibilitys do spring to mind.
I think you need to calm down and not do anything that might end with your brother having discussions down the police station.
You need to tell him all your fears and you want all this to be undone as quickly as possible. You perhaps will have to engage a solicitor to act for you and who will only be interested in sorting it out and not informing the authority's.
Frankly what your husband will/does think of all this I can not imagine. You have put not only yourself in a very, very strange situation but also him and your new baby.
I hope good luck will be on your side.

I do now believe his sole reason for putting it in my name was to avoid paying tax and claim rent tax free.
With regards to the cash, he said he has two other investors, so the three of them purchased the property jointly.

And about him going to the police station, maybe that's what he deserves if he has been acting illegally. That should teach him.

And my husband isn't best pleased as this mess means we cannot get our own home. We have managed to save for a deposit for a house, but cannot get a mortgage. We need to move out from his mums house asap, so renting is really our only option now. So we will be wasting money on rent when we could have been investing in our own home if we were paying a mortgage.