Advice on possible mortgage fraud

Guest101

neas wrote: »

I'm not sure this is as bad as you make it out though. This is your view (which will most likely be biased because of the whole step mon/step father split business).

WHat we have here is a lad who parent guided him to buy a buy to let property, and whose parent + step parent are managing for him on a day to day basis. in 10 years he will still be on the land registry and mortgage but the house will have appreciated thousands of pounds.

Unless they forced him to gift back the earned cash, he would stll be financially better off.

She takes all money, because they probably gifted him 5-10% of the house value in deposit (he doesn't sound like he has the means to save the deposit).

From my perspective it looks like a well meaned attempt at increasing your stepsons wealth and position for when he is 30 years old and starting a faimily. If all goes well he will have a tidy deposit for his own family house.

You know what I mean? In 10 years when the equity is worth £30k, he could sell it and has got £30k for nothing. Sure it affects his housing benefit but I can't believe its as bad as you are portraying .

Maybe you could help him get a 2nd house and then you would be even with them?

If it's a gifted deposit, they have no claim to a debt...

Landofwood

What does your step-son want to happen with the house?

Bemzil1

Thank you , I think you are right . I think this could take some convincing as it would mean going against his mother who he obviously loves , but I think the talk needs to happen . I just wanted to feel I was doing the right thing by him , because I think the !!!! really is gonna hit the fan when she finds out we are aware of the situation . I have never wanted my opinion to take over but now with other people feeling how I do its convinced me to act .
Thank you x

Bemzil1

He doesn't see it as his really even though we have explained it to him , he is naive . To be honest if he was more clued up and we felt he knew the ins and outs I would stand back and say it's for him to deal with . I think it's more that we feel he has a lack of understanding of the whole situation

wonerme

An interesting thread, I'm sorry I can't help. But it seems to me that you / your stepson need the help of someone who is qualified in these type of issues. A solicitor will probably be out of the question because of the cost (probably £200 / £300 an hour), perhaps an estate agent or mortgage advisor could help. (be careful of the latters fees).

Bemzil1

I was thinking of making him an appointment at the citizens advice ? I do intend to email his mother today to see what she says about it , my guess is that I may not get a response .

Guest101

Bemzil1 wrote: »

I was thinking of making him an appointment at the citizens advice ? I do intend to email his mother today to see what she says about it , my guess is that I may not get a response .

There's 1 person involved in this house.

What she says is irrelevant.

The owner of the house either takes control or long term loses out.

They are taking HIS rent, and are paying HIS mortgage ( and getting an interest in the property!)

It is HIM who will get sued or arrested when gas safety isn't done ( and someone could die ). Or when deposit isn't protected and he owes x,000s. Or when the tenants are illegally evicted.

Bemzil1

True ! Strait to CAB it is then , thank u

Pixie5740

I think it would be worth contacting HMRC. You don't have to give specifics, just ask for some general advice about the situation of one person owning a property and another person letting out the property. If it turns out your step-son should have been paying income tax even though he hasn't physically received the rent from his mother.

You should also find out where the mortgage statements are going. It might be worth your step-son setting up a postal redirect for the property in case there are any important letters address to him going there.

It might be possible that there is consent-to-let in place but then again there might not be. It would also be worth finding out if the property is insured and if so what kind of insurance is in place. Buildings or Landlords insurance.

This is possibly a bit premature, at least until you find out more about the situation, but this New Landlords guide by G_M will give you an idea of the responsibilities a landlord.

Edit: By all means go and see CAB but I'm not sure how clued up they'll be with this scenario.

Bemzil1

Thanks that's very helpful