Partial ownership of family members house

dodgy

Hi there,

To put you in the picture, I have a legal document which tells me I own a third of my sisters property. My grandmother (who is still living) gave £100k to my mother and my auntie, who each gave £25k to their children. My share was given to me as part ownership of my sisters house. She doesn't pay me rent.

For various reasons I'm trying to work out what I'm supposed to do and what my liabilities are on that investment. When she eventually sells or buys me out, what are the tax implications?Is there anything I can do now that will help when that time comes?

If I started receiving rent from her, would this change anything?

Thanks for any hints ...

Robert_Sterling_3

It appear that you were not given £25,000.
You were given a share in your sister's house.
How did your mother give you something which is owned by your sister.
Is your sister married.
On the face of it you should be getting some rent ( Taxable) and a share of the Capital Appreciation.
One complication is that if your sister owned the whole house and it was her main place of residence there would be no capital gains tax if the house were sold.  If it was your main residence that would be good to but if you live somewhere else that would not be so good.Why was this arrangement made in the first place.  Did you act on legal advice.

dodgy

Hi,

I guess you're right - I was given a third share, which at the time was worth 25k. It was all set-up when my sister urgently needed a place to live. She's not married, but someone is intending to move in - hence my interest in rent/getting my share out.

It was never owned by my sister, she owns a third, has a mortgage for a third, and I own a third. We have a legal document stating this. It does state that when the time comes, I get a third of the proceeds of any sale (therefore the capital appreciation).

I agree that rent would have been nice, she just hasn't been in a position to pay it - so it's never happened. With another income moving in to the house I want things to change - hence my question.

It's not my house, nor has it ever been.

Thanks.