Transfering name on property PLZ HELP

del_piero_3

Hey guys,

Few years ago my cousin wanted to buy a property but at the time he just started his 1st job so I volunteered to take the mortgage out on my name although he was paying. The property was too good to miss out on and it has turned out to be so true.

Now the house has been paid off, but it’s on my name and we want it transferred over to my cousin. But the solicitor scared the cr*p out of us by saying stuff about the tax man and how much he would take out of us etc. I would say the value of the house is about 200k.

Now I’m planning on buying a house for myself for around 110k (on mortgage) and was wondering if we can use this situation somehow to get the other house transferred to the right full owner. My cousin is willing to spend around 3k to have it transferred to his name in fees etc but he is not willing to pay large amounts to the tax man etc so can someone suggest some ways of achieving this? Appreciate your help

silvercar

You need to persuade the taxman that the mortgage and property were only put in your name to enable your cousin to get a mortgage. It wasn't to give you beneficial ownership nor was it to evade tax. This has been done but it will need some negotiation. It may be best to consult an accountant.

mightymouse

You would need paper trail if you wanted to show the property was purchased for your cousen.

Who lives in the property now and has lived in it in the past ie you, your cousen or others.

Is this your first home and where do you live

You might be able to give it to your cousen by deed of gift (similar to inheritance tax) with similar implications.

You should consult a property solicitor.

del_piero_3

mightymouse wrote: »

You would need paper trail if you wanted to show the property was purchased for your cousen.

Who lives in the property now and has lived in it in the past ie you, your cousen or others.

Is this your first home and where do you live

You might be able to give it to your cousen by deed of gift (similar to inheritance tax) with similar implications.

You should consult a property solicitor.

When you say paper trail, do you mean who paid bills etc over the year? Since day one he has been living in there with his family, even council tax and other bills are on his name. I live with my parents.

Am sure the solicitor said the tax man takes a large cut if gifted (inheritance)

mightymouse

If your cousin has lived there from the start what evidence is there that he has paid for or contributed to the Mortgage repayment.

You may be able to show that he has a beneficial or equitable interest but this area is difficult and open to challenge.

Questions will be asked such as where did the money come from? What part did his wife play in paying the mortgage? Etc

If this is your first home with your related family in occupation and not paying rent then you need to see (per silvercar) an accountant who is friendly with a property solicitor and see what can be put together.

What tax are you expected to pay on your only property whilst you are still alive?

mightymouse

To add a further thought is once you have resolved the ownership issue you should then consult a mortgage advisor who will sort out the new mortgage that you need and put together some life assurance to cover your short and long term liability in the event of your death.