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Names on deeds and mortgage different??

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Names on deeds and mortgage different??

edited 30 November -1 at 1:00AM in House Buying, Renting & Selling
11 replies 813 views
Hali-5Hali-5 Forumite
4 posts
edited 30 November -1 at 1:00AM in House Buying, Renting & Selling
Hi all! So I am looking to buy a house with my partner with my mum giving/loaning us money for the deposit. The grand plan was for her to buy it with us rather than gifting me the money (which is then subject to capital gains tax) and therefore be on the deeds but not be on the mortgage. She won’t be living in the house. Is this allowed? To have two people on the mortgage but three on the deeds?
Thank you :)
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Replies

  • Pixie5740Pixie5740 Forumite
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    Hali-5 wrote: »
    Hi all! So I am looking to buy a house with my partner with my mum giving/loaning us money for the deposit. The grand plan was for her to buy it with us rather than gifting me the money (which is then subject to capital gains tax) and therefore be on the deeds but not be on the mortgage. She won’t be living in the house. Is this allowed? To have two people on the mortgage but three on the deeds?
    Thank you :)

    What is subject to Capital Gains Tax? The gift?

    I think it might only be HSBC who will allow more people named on the deeds than the mortgage.

    What is the objective here because there are alternative solutions which are better than what you are proposing. Does your mother want to gift you the money or does she want to lend you the money?
  • MojisolaMojisola Forumite
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    Hali-5 wrote: »
    The grand plan was for her to buy it with us rather than gifting me the money (which is then subject to capital gains tax)

    There's no tax on gifts.
  • davidmcndavidmcn Forumite
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    Mojisola wrote: »
    There's no tax on gifts.
    ...whereas mum's share of the property would be subject to CGT (assuming it's not also her principal residence).
  • kingstreetkingstreet Forumite
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    It would make more sense for her to take a second charge over the property to protect her "gift."

    Some lenders will accept this.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • MojisolaMojisola Forumite
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    davidmcn wrote: »
    ...whereas mum's share of the property would be subject to CGT (assuming it's not also her principal residence).

    Not if the money was a gift - she won't own a share of the property.
  • davidmcndavidmcn Forumite
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    Mojisola wrote: »
    Not if the money was a gift - she won't own a share of the property.
    I was meaning if the OP is following their plan of mum owning a share of the property.
  • Hali-5Hali-5 Forumite
    4 posts
    Ultimately the aim is to gift and currently trying to avoid the capital gains tax. We were under the impression that cash gifts were subject to CGT but if she gifts her her part of the house at a later date then houses aren’t subject to CGT.... I stand to be corrected tho
  • Hali-5Hali-5 Forumite
    4 posts
    Also thanks for all the replies! I wasn!!!8217;t expecting everyone to be so helpful to a newbie :)
  • Pixie5740Pixie5740 Forumite
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    Hali-5 wrote: »
    Ultimately the aim is to gift and currently trying to avoid the capital gains tax. We were under the impression that cash gifts were subject to CGT but if she gifts her her part of the house at a later date then houses aren’t subject to CGT.... I stand to be corrected tho

    It's the opposite way around. There is no gift tax, capital gains or otherwise in the UK so your mum is free to gift you as much cash as she likes. Providing your mother survives for 7 years after making the gift it shouldn't be subject to Inheritance Tax either.

    However, when disposing of property that is not your main residence and has never been your main residence that will trigger a capital gains tax liability.
  • Hali-5Hali-5 Forumite
    4 posts
    Brill, thank you, any idea where official I can find that written down to show her?
    Thanks for your help
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