HELP WITH CAPITAL GAINS ON SECOND PROPERTY PLEASE!

mybestattempt

silvercar said:

Hoenir said:

silvercar said:

“ Under the terms of the Mortgage agreement, the house had to put into his sole name he continued paying the mortgage.”

That one sentence suggests that your husband became the legal owner with the parents remaining the beneficial owners.

The mortgage lender would not advanced the funds if that were the case. Backdating a document now wouldn't hold water as a consequence. 

Why not? Lenders are only concerned with legal ownership and their right to repossess.

It will have been a condition of the mortgage that the parents made declarations stating they had no beneficial interest in the property after the sale to their son, that is how the lender had the right to repossess and evict.

For the parents to have acquired beneficial ownership after the mortgage was redeemed would have required a declaration in writing at the time, by the son, creating an express trust in accordance with S53(1)(b) of the Law of Property Act 1925.

Absent a written declaration it might be claimed there was a constructive trust, however, the parents would have to show they were disadvantaged in some way and clearly they were not.