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Property Developer Mortgage

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Comments

  • SquatNow
    SquatNow Posts: 2,285 Forumite
    Generali wrote: »
    The alternative would be for the seller to raise a mortgage of 12% of the value of the house and give it to you. You would then have a 25% deposit and the mortgage would be repaid on completion.

    Except of course the 12k would still be classed as a gift... same problems as above.
    Bankruptcy isn't the worst that can happen to you. The worst that can happen is your forced to live the rest of your life in abject poverty trying to repay the debts.
  • Generali
    Generali Posts: 36,411 Forumite
    10,000 Posts Combo Breaker
    SquatNow wrote: »
    Except of course the 12k would still be classed as a gift... same problems as above.

    Not if you don't declare it. As I went on to say, it's mortgage fraud but the chances of being caught are negligible.
  • SquatNow
    SquatNow Posts: 2,285 Forumite
    Generali wrote: »
    Not if you don't declare it. As I went on to say, it's mortgage fraud but the chances of being caught are negligible.

    No it's Tax Evasion, and the banks are now actively co-operating with Customs & Excise, giving them all the data they want...

    If it's an account to account trasfer or a cheque, it's easily traceable. If you pay it in in cash, alarm bells will ring all over the place.
    Bankruptcy isn't the worst that can happen to you. The worst that can happen is your forced to live the rest of your life in abject poverty trying to repay the debts.
  • neas
    neas Posts: 3,801 Forumite
    Everyones a property developer these days :)
  • SquatNow
    SquatNow Posts: 2,285 Forumite
    neas wrote: »
    Everyones a property developer these days :)

    I've painted my kitchen.... so I've ""improved" the property.

    Thus, I am a property developer.

    Of, course, unlike most property developers, I'm not drowning in debt struggling to sell properties in a falling market.
    Bankruptcy isn't the worst that can happen to you. The worst that can happen is your forced to live the rest of your life in abject poverty trying to repay the debts.
  • Generali
    Generali Posts: 36,411 Forumite
    10,000 Posts Combo Breaker
    SquatNow wrote: »
    No it's Tax Evasion

    Only if the giver dies and you then try not to declare it to the tax man as I understand it.
  • SquatNow
    SquatNow Posts: 2,285 Forumite
    Generali wrote: »
    Only if the giver dies and you then try not to declare it to the tax man as I understand it.

    You'de have to delacare it either way as it's probably over the gift allowance... anyone know what the gift allowance is?
    Bankruptcy isn't the worst that can happen to you. The worst that can happen is your forced to live the rest of your life in abject poverty trying to repay the debts.
  • Generali
    Generali Posts: 36,411 Forumite
    10,000 Posts Combo Breaker
    SquatNow wrote: »
    You'de have to delacare it either way as it's probably over the gift allowance... anyone know what the gift allowance is?

    Thanked in error for which I apologise.

    What's your point? Are you trying to say there's a gift tax? AFAIK, gifts come under Inheritence Tax if the giver dies within 7 years of the gift being given. Gifts of £3k pa to your kids (£5k if they are getting married I think) are exempt.
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