Gift mortgaged property to sibling

seashore22

On your other thread you say that you have bought a house, but don't live in it. You live with your parents. Is that correct?

If so, I have to say that this is a slightly strange arrangement. Was there a reason that you bought a house, but never paid a penny towards it and you have never lived in it? Who has been living in it? What were you all trying to achieve.

seashore22

Actually after a closer look at the op's previous threads, I'm out. I don't respond to rude people as a general rule.

Pixie5740

sociable7 wrote: »

No. He lent me it to buy a house. But on paper it was a gift. Of course he has no equity or interest in the property but I'm not a !!!!!. Now I don't need the house. He was also paying the mortgage.

I never said your brother had equity in the property I said that if there is enough equity to cover the repayment of the mortgage and the "gift" your brother made you could simply sell it. You never made it clear that you have a strange set up where your brother "gifted" you the deposit for a property he lives in and pays the mortgage which is in your name. Does the lender know about this arrangement? Have you been paying income tax on the rental income?

The second part of the bolded sentence is debatable.

sociable7 wrote: »

I didn't want to sell it and him buy it because we might look at £5k of fees. Rather avoid them. I think there's something called equity gift.

There is something called gifted equity but as there is a mortgage it's a moot point. The mortgage lender simply will not allow you to transfer ownership to someone else whilst there is a mortgage in place. Don't forget that as this isn't and has never been your main residence there might be Capital Gains Tax to pay when you dispose of the property.

getmore4less

If you want to remove yourself from your mortgage on your house then it needs to be sold(or you find the cash to pay it off)

two main options

1. you sell to anyone that will buy it, estate agent fees etc.

2. your brother wants it and gets a mortgage to cover your mortgage and then buys the place off you with the gifted equity for the rest

Fees for the latter will be solicitors to do the conveyance say around £1k.