Gifting Property to Family

bamgbost

mmm good point. he did say a "gift" but since a mortgage still remains then we in effect have to take on the mortgage.

Need to get more info from him. as to how much is left to pay, etc.
Cos at the moment, I have no clue on all this. But u guys have given me a steer!

Cheers!

Pixie5740

You don't take on the mortgage, that's not how mortgages work. You would need to apply for a mortgage in your own name using the gifted deposit (i.e. the equity: property value - outstanding mortgage). You would really need to speak with a mortgage broker about the feasibility of you obtaining a BTL mortgage.

G_M

G_M wrote: »

If there's currently a mortgage it will need paying off, either by him or by you (or by me if you undertake to pay me 234% interest).

Once it's paid off, he can gift it to you unencombered.

However if neither you nor he have the funds to pay it off (and you're not willing to borrow from me at 234%), then you could apply for a mortgage yourself to raise enough to pay off his mortgage. Subject to you and the property meeting all the normal mortgage criteris.

silvercar

Bear in mind that it is difficult to get a BTL mortgage if you yourself are renting.

AdrianC

If he's giving you the house, then I presume he'll be clearing the mortgage himself...?

If he's "giving" it you, but you need to cover the outstanding mortgage, then he's selling it to you.

booksurr

bamgbost wrote: »

My FIL has a Buy2Let property of his in the UK. He does notreside here, but visits every 6 months.
He has brought up the topic of gifting this property to mywife & I.
....

Is there any benefit disadvantage to him not being a UK resident, or UK national? Of us not living there vs living there?

G_M wrote: »

He'll be liable for Capital Gains Tax as it's not his main residence. No idea how HMRC collect this from non residents though. But this is an issue whenever he sells and whoever he sells to.

FIL is non resident and based on the above non domiciled so is only liable to CGT on his gain since 5 April 2015 when the new non dom CGT rules came in. All gains prior to that date are exempt since the old rules meant non doms did not pay CGT - hence the rule change!

the connected persons rule will still apply as will the market value determination

as the property is BTL then FIL will already be completing annual UK SA returns therefore will need to add in the CGT pages for the year in which the gift transaction falls

thesaint

I would pass up the offer.
It is clear you don't have a scooby about being a house-owner, never mind a landlord.