Transfer of Equity Query

Rosesgirl

Hi just wanted some advice

My brother is giving me the funds so I can do a transfer of equity from joint to single on a property with no mortgage . It's a loan where I have to sign that when my future inheritance from parent becomes available I relinquish the agreed amount so he receives his money back , no problem with that.  He also states for the duration that I owe him these funds he wants on the deeds of the property .

Any thoughts.
Thanks !

user1977

"On the deeds" in what way?

Snookie12cat

He wants to add a charge to the deeds? I think that's possible.. Like what happens in divorces I suppose

dimbo61

So your brother is " Lending " you the money to buy out your current partner/husband ?
If he charges Interest on the loan he needs to declare that to HMRC.
He also wants to put a charge on the property so he gets back the amount he is Lending you.
If he makes that a percentage of the sale price and not £XXX, XXX which was the original amount he lent you he could be liable to Capital Gains Tax.

Rosesgirl

Thanks . No he won't be charging interest and I understand I have to sign an agreement that further along when my inheritance from my parent is due he receives his funds , I assume he just wants to back this up by going on the deeds for the duration of this agreement and that's what I wanted info on really. The intention is that when he receives his funds back in the foreseeable he will then be removed . 

JGB1955

Does he already own a house?  If so, that might cause more issues......

Rosesgirl

Would a charge on the property suffice ....

Mojisola

JGB1955 said:

Does he already own a house?  If so, that might cause more issues......

It could if he became an owner but not if he's loaning the money.

Rosesgirl

JGB1955 said:

Does he already own a house?  If so, that might cause more issues......

Yes he is in Ireland he owns his own property

Tiglet2

Rosesgirl said:

Hi just wanted some advice

My brother is giving me the funds so I can do a transfer of equity from joint to single on a property with no mortgage . It's a loan where I have to sign that when my future inheritance from parent becomes available I relinquish the agreed amount so he receives his money back , no problem with that.  He also states for the duration that I owe him these funds he wants on the deeds of the property .

Any thoughts.
Thanks !

You are doing a transfer of equity from joint to joint, not joint to single from your OP, if your brother wants to be on the title deeds.

I assume your brother. will put a charge (mortgage) on the property, which you'll be able to repay when you get your inheritance and you'll do another transfer of equity to remove him from the title. 

I do wonder about your certainty that you will get your inheritance though.  What if your inheritance is swallowed up by care home fees and the residential home sold?  

user1977

Rosesgirl said:

I assume he just wants to back this up by going on the deeds for the duration of this agreement and that's what I wanted info on really. 

But what does he think he means by "on the deeds"? A chargeholder (would make most sense)? A joint owner? Something else?