FTB who should we put on the house deed?

Lokolo

PokerPlayer111 wrote: »

We would only be buying 2nd property when we have cash to buy outright and we intended to rent it to relative for £1 per month etc (basically nothing) - its to help them to not have rent or mortgage ever etc.

Then the only issue I believe you would have is to carry out your responsibilities as a landlord.

gas safety check, maintenance etc.

PokerPlayer111

Lokolo wrote: »

Then the only issue I believe you would have is to carry out your responsibilities as a landlord.

gas safety check, maintenance etc.

oh good really? i kinda just wanted to do nothing and leave them to it. Can i get screwed in anyway? lets say the family relative says i didn't perform a gas safety check etc, i get in trouble? i'd rather they smash up the house vs actually get me in legal trouble.

Lokolo

Somewhere there is a guide for landlords created by G_M. Someone will undoubtedly have it in their favourites and post it.....

I'd also wait for someone else to reconfirm what I've said is correct. I don't believe I am wrong though.

PokerPlayer111

Lokolo wrote: »

Somewhere there is a guide for landlords created by G_M. Someone will undoubtedly have it in their favourites and post it.....

I'd also wait for someone else to reconfirm what I've said is correct. I don't believe I am wrong though.

Yeah it seems what G_M said would be the way to go.

But actually wondering if buying family members houses is a good way to gift/help them etc, assuming you want to help, maybe just giving them money is better. What you think?

aneary

you could give them money and put a charge on the house.

PokerPlayer111

G_M wrote: »

The money provided by the non-owner could be classified as a loan, with a formal document (Deed), so that they could claim that money back.

That is potential way to go but, potential risk is house prices crashing could end up being better of as the person giving the loan. In event of a split after a house price crash person with name on deed could actually end up in debt, if crash were greater than 50% or if property for whatever reason is worth 50% less at any point.

PokerPlayer111

G_M wrote: »

As there is no mortgage, it is up to you to decide who will own the property.

Yes, of course whoever is on the deeds owns the property! That means the other person has no rights, can be kicked out, and if the property is sold by the owner would have a difficult fight getting any money back.

This part here though, lets assume the long term GF just pays for 50% of property with me on the deed and not her and we dont have a loan agreement draw up. - does that not mean i am liable for capital gains since she just basically "gave" me 100k? (even though she has paid captial gains on her money already)

PokerPlayer111

Hi. It's the OP's GF now

Is it always a case that you are either a resident at a 2nd property or a landlord?

I'm thinking of the BF going on the deed to house number 1 with us both putting 50% cash to it.
Me going on deed for house number 2 and both of us putting 50% to it.
All cash buys, no mortgage.

Putting my sister in house number 2 - not charging her a penny rent. She pays the bills, I own the house she lives in. I don't reside there. Am I still classed as a landlord?

G_M

My advice/information in post 3 above has not changed.

But to add, if (one or both of you) own a property but don't live in it, then it might be

* a 2nd home (ie for your weekends, but unoccupiedthe rest of the time - watch out for pricey insurance)
* a rental (ie someone else lives there and pays you - note this might be cash rent, but could also be payment 'in kind')

If a rental, you would be landlords, so see
* Tenancies in Eng/Wales: Guides for landlords and tenants

There is a grey, middle ground, where someone occupies the property under a licence as opposed to a tenancy. ie they have permssion to stay there for a period of time, just like a guest. But they cannot pay rent. Cannot pay running costs. Cannot agree to redecorate in exchange for the licence. Cannot repay you in any way. If they do, they become tenants.

PokerPlayer111

G_M wrote: »

My advice/information in post 3 above has not changed.

But to add, if (one or both of you) own a property but don't live in it, then it might be

* a 2nd home (ie for your weekends, but unoccupiedthe rest of the time - watch out for pricey insurance)
* a rental (ie someone else lives there and pays you - note this might be cash rent, but could also be payment 'in kind')

If a rental, you would be landlords, so see
* Tenancies in Eng/Wales: Guides for landlords and tenants

There is a grey, middle ground, where someone occupies the property under a licence as opposed to a tenancy. ie they have permssion to stay there for a period of time, just like a guest. But they cannot pay rent. Cannot pay running costs. Cannot agree to redecorate in exchange for the licence. Cannot repay you in any way. If they do, they become tenants.

Thanks very much for your help and other help from all, that clears it up really well much appreciated.

The only other thing we are now wondering is if we both go on the deed but 1 of us dies, does the other automatically inherit the whole house (reminder we are long term BF,GF not married)