Parents buy share of equity in my home advice needed?

wmat983

If my parents were to help pay a chunk of mortgage what would be the best way for me to protect their investment, would it be to create a declaration of trust?

getmore4less

There are issues if they buy a share of your property.

The two main ones
There will be SDLT to start with and second home charge if thye already have one. .
If they don't live there CGT becomes an issue when their share is disposed of(sale or you paying them back)

wmat983

getmore4less said:

There are issues if they buy a share of your property.

The two main ones
There will be SDLT to start with and second home charge if thye already have one. .
If they don't live there CGT becomes an issue when their share is disposed of(sale or you paying them back)

Hmm are there any ways around it if they can help pay some mortgage off and protect what they pay?

getmore4less

They can loan you a fixed amount and get that back at some point in the future.

They could charge interest but that is taxable.

JGB1955

Can they put a second charge on your property?

wmat983

getmore4less said:

They can loan you a fixed amount and get that back at some point in the future.

They could charge interest but that is taxable.

OK so if they loan me money and I pay it back over time and they make no profit that would be fine?

wmat983

JGB1955 said:

Can they put a second charge on your property?

Sorry I'm unsure how this would work? I'm not very clued up on all this?

Mickey666

welshmatt983 said:

If my parents were to help pay a chunk of mortgage what would be the best way for me to protect their investment, would it be to create a declaration of trust?

What are you or thy trying to protect it against?  Also,'investment' usually implies the investor expects a return is that likely to happen in this case?
Are you sure this is not really just a 'gift' that they would only want returned if something goes wrong in the future?  If so, how about a simple loan, perhaps repayable on demand (maybe with 6-months notice or similar).  If all went well they needn't ever have it returned, but would have the 'protection' of being able to call it in if they wished - which may or may not be acceptable to you.

I guess I really asking for more background of what you're trying to achieve.

wmat983

Mickey666 said:

welshmatt983 said:

If my parents were to help pay a chunk of mortgage what would be the best way for me to protect their investment, would it be to create a declaration of trust?

What are you or thy trying to protect it against?  Also,'investment' usually implies the investor expects a return is that likely to happen in this case?
Are you sure this is not really just a 'gift' that they would only want returned if something goes wrong in the future?  If so, how about a simple loan, perhaps repayable on demand (maybe with 6-months notice or similar).  If all went well they needn't ever have it returned, but would have the 'protection' of being able to call it in if they wished - which may or may not be acceptable to you.

I guess I really asking for more background of what you're trying to achieve.

To be totally honest its probably better if I was totally clear I have a court fine to pay, this was based on equity in my house. At the same time as I didn't have enough equity to pay full amount they could come back for more equity in future.
Its really getting to me, I don't have the money to pay the fine so I was going to see if parents could buy my half of the house (pay fine also)  and I would give the other half to my partner maybe.
Its causing so much stress, my family don't want to move but may be forced to. Need to somehow think of a way to raise money to pay fine (without having to move out) and at the same time protect from coming back for more in the future. 
Only way I can do it is borrow the money for the fine, add a charge to property and keep doing this I guess so never any real equity?

wmat983

Thanks for all your replies also, much appreciated!

getmore4less

Who can  fine based on property value?

f you pay the fine is that full and final?

Can parents raise the funds? 

Do you need them to fund part of the mortgage?