Embezzlement?? Property andLimited single director company's

Skeggyshell

Ok so my husband best friend sadly passed away in 2015 and we remained close with his wife and son. My landlord and his family were also good friends with them all, Sadly she was struggling to continue paying the mortgage and bills without him , My landlord reached out and purchased the property in Sept of 2015 for 121k than they paid in 2006!! However thankfully they have remained in the house as tenants.
Recently I'm looking to move and noticed that in 2019 the same property sold for 1.26M..!! It's a 2 bed bungalow for reference. My reason for posting is that my landlord's other single director ltd company purchased it!? Ltd company selling to ltd company single director being the same person? Fraud embezzlement? P.s these are very weathly and well known where I live.  What would you do as it's not sitting right with me thank you in advance.

user1977

Sorry, who are you accusing of embezzling from whom?

doodling

Hi,

It isn't clear what your concern is.  A house was sold at one price in 2006, another in 2015 and another in 2019.  That isn't unusual.

The fact the one company sold something to another company when both companies are controlled by the same person is also not unusual.

Whilst it isn't clear, I think you are expressing surprise at the value of the most recent transaction.  If the house was sold at an unrealistically high value then the main beneficiary will be HMRC who will get more SDLT.  I personally have no objection to people or companies structuring their finances so as to pay more tax as it means that I will probably pay less.

Are you able to be clearer about who might have embezzled what from where?

propertyrental

" My landlord reached out and purchased the property in Sept of 2015 for 121k than they paid in 2006!! "

do you mean a) the LL paid 121K, or paid £121K more than was paid in 2006?

If the latter, how much was paid in 2015?

I suspect the OP's concern is the LL took advantage of OP's friend and paid too little, as evidenced by the later £1.26m price.

But that does not seem like embezzlement....

user1977

Also, I wonder if the £1.26m is really just for this property, or is perhaps the overall price for a larger portfolio.

Albermarle

noticed that in 2019 the same property sold for 1.26M..!! It's a 2 bed bungalow for reference. 

That seems a very high price for a 2 bed bungalow, even if it is in a nice/expensive location.

What price do similar properties in the area currently sell for ?

Grumpy_chap

Skeggyshell said:

Ok so my husband best friend sadly passed away in 2015 and we remained close with his wife and son. My landlord and his family were also good friends with them all, Sadly she was struggling to continue paying the mortgage and bills without him , My landlord reached out and purchased the property in Sept of 2015 for 121k than they paid in 2006!! However thankfully they have remained in the house as tenants.
Recently I'm looking to move and noticed that in 2019 the same property sold for 1.26M..!! It's a 2 bed bungalow for reference. My reason for posting is that my landlord's other single director ltd company purchased it!? Ltd company selling to ltd company single director being the same person? Fraud embezzlement? P.s these are very weathly and well known where I live.  What would you do as it's not sitting right with me thank you in advance.

It sounds like there is a lot here that you don't know, or have not shared.
There must be a good reason why the individual sold a property (or portfolio of properties) from one Ltd Co to another, especially as I understand such a transaction would incur SDLT so can't be a simple transfer of funds / assets between the two Ltd Cos.

user1977

Grumpy_chap said:

Skeggyshell said:

Ok so my husband best friend sadly passed away in 2015 and we remained close with his wife and son. My landlord and his family were also good friends with them all, Sadly she was struggling to continue paying the mortgage and bills without him , My landlord reached out and purchased the property in Sept of 2015 for 121k than they paid in 2006!! However thankfully they have remained in the house as tenants.
Recently I'm looking to move and noticed that in 2019 the same property sold for 1.26M..!! It's a 2 bed bungalow for reference. My reason for posting is that my landlord's other single director ltd company purchased it!? Ltd company selling to ltd company single director being the same person? Fraud embezzlement? P.s these are very weathly and well known where I live.  What would you do as it's not sitting right with me thank you in advance.

especially as I understand such a transaction would incur SDLT so can't be a simple transfer of funds / assets between the two Ltd Cos.

It will attract SDLT relief if the companies are in the same group.

Skeggyshell

Same year same sized bungalow? 

Skeggyshell

Just amazed how the mortgage was attainable as clearly overvalued?

user1977

Skeggyshell said:

Just amazed how the mortgage was attainable as clearly overvalued?

Is there a mortgage?

Is not more likely that someone with fat fingers has typed in the price?