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Crashy_Time wrote: »Do you think it will be less tax?
Yes, definitely. For dad. I wrote, in relation to CGT: The base price for your dad's half gets reset to the value when your mum died.No reliance should be placed on the above! Absolutely none, do you hear?0 -
Ok, photos taken so let's see where that takes us - probably nowhere, haha.
Another curve ball to throw into the mix. Ignore all the stuff I wrote above about my own experience with the deed of trust in what follows - me and my brother are very different characters, and he would be perfectly happy to be in the same situation as I was, because he wants to stay in London and is much more easy going and less bothered about independence than me. So I'm asking purely whether the following is theoretically possible.
So a relative came forward today who has quite a lot of money in savings and is fed up with it making no interest. I mean obviously the flat isn't doing great, but it's still done better than bank accounts over the last five years. He proposed that he and my dad go together to put in a large deposit, and then my brother takes out a mortgage on the rest. I think the figures would go like this:
Current arrangement - flat was £245 when I bought it, £115k was my mum's deposit, £130k was my mortgage. When the flat sells, the equity and the deposit will be divided pretty much equally between me and my two siblings.
The new proposal is: We sell the flat for 286 to my brother, which is as per the Zoopla estimate. He has a £120k mortgage, my relative and dad put in £120k between them, and the difference is made up by the deposit that my brother would have got back from the flat. Obviously that's the sticking point, so I think it comes down to whether the deposit can be beefed up by c. 40k for a handful of days, while the flat sale goes through and then my brother's share will go back to the person that puts that extra money in.
Obviously it's ridiculously complicated and could have implications - tax, deed of trust and all that jazz - but tell me, does it actually work in terms of the numbers?0 -
kazzamunga wrote: »Ok, photos taken so let's see where that takes us - probably nowhere, haha.
Another curve ball to throw into the mix. Ignore all the stuff I wrote above about my own experience with the deed of trust in what follows - me and my brother are very different characters, and he would be perfectly happy to be in the same situation as I was, because he wants to stay in London and is much more easy going and less bothered about independence than me. So I'm asking purely whether the following is theoretically possible.
So a relative came forward today who has quite a lot of money in savings and is fed up with it making no interest. I mean obviously the flat isn't doing great, but it's still done better than bank accounts over the last five years. He proposed that he and my dad go together to put in a large deposit, and then my brother takes out a mortgage on the rest. I think the figures would go like this:
Current arrangement - flat was £245 when I bought it, £115k was my mum's deposit, £130k was my mortgage. When the flat sells, the equity and the deposit will be divided pretty much equally between me and my two siblings.
The new proposal is: We sell the flat for 286 to my brother, which is as per the Zoopla estimate. He has a £120k mortgage, my relative and dad put in £120k between them, and the difference is made up by the deposit that my brother would have got back from the flat. Obviously that's the sticking point, so I think it comes down to whether the deposit can be beefed up by c. 40k for a handful of days, while the flat sale goes through and then my brother's share will go back to the person that puts that extra money in.
Obviously it's ridiculously complicated and could have implications - tax, deed of trust and all that jazz - but tell me, does it actually work in terms of the numbers?
So you are happy to sell your brother an overpriced flat? If I was your brother I would run away from this arrangement fast.0 -
So you are happy to sell your brother an overpriced flat? If I was your brother I would run away from this arrangement fast.
It's not had much interest at £305k, but it does not follow that £286k is overpriced. How do you reach that conclusion?
However, I really don't think the Zoopla valuation can be relied on at all. I suggest getting a surveyor to value it.No reliance should be placed on the above! Absolutely none, do you hear?0 -
Yeah @cakeguts it's really not overpriced. I don't want to get into that highly subjective conversation again.
Pretty confident that a surveyor would say similar, so sure, that's a good idea.
I reiterate - I'm asking about the mechanics of the transaction.0 -
I’m a bit late in on this one, but I think the target market might be a single retired person rather than a young professional. Ground floor plus parking makes it attractive to someone downsizing.
I no longer know the Ruislip/Eastcote market, having decamped many years ago to the other side of London (and crossed the River), but I do know that the market generally in London is volatile. Some properties are going instantly for near asking price, others just hang. Also when the market is in post-bubble state, it’s the 1 bed flats that tend to take the hit.0 -
kazzamunga wrote: »Ok, photos taken so let's see where that takes us - probably nowhere, haha.
Another curve ball to throw into the mix. Ignore all the stuff I wrote above about my own experience with the deed of trust in what follows - me and my brother are very different characters, and he would be perfectly happy to be in the same situation as I was, because he wants to stay in London and is much more easy going and less bothered about independence than me. So I'm asking purely whether the following is theoretically possible.
So a relative came forward today who has quite a lot of money in savings and is fed up with it making no interest. I mean obviously the flat isn't doing great, but it's still done better than bank accounts over the last five years. He proposed that he and my dad go together to put in a large deposit, and then my brother takes out a mortgage on the rest. I think the figures would go like this:
Current arrangement - flat was £245 when I bought it, £115k was my mum's deposit, £130k was my mortgage. When the flat sells, the equity and the deposit will be divided pretty much equally between me and my two siblings.
The new proposal is: We sell the flat for 286 to my brother, which is as per the Zoopla estimate. He has a £120k mortgage, my relative and dad put in £120k between them, and the difference is made up by the deposit that my brother would have got back from the flat. Obviously that's the sticking point, so I think it comes down to whether the deposit can be beefed up by c. 40k for a handful of days, while the flat sale goes through and then my brother's share will go back to the person that puts that extra money in.
Obviously it's ridiculously complicated and could have implications - tax, deed of trust and all that jazz - but tell me, does it actually work in terms of the numbers?
Let me check the sums. On the assumption you sell for £286k, this gets divided as follows:
You: £130k + £52k
Your brother: £52k
Other sib: £52k
That is funded by:
Your dad plus other reli: £120k
Your brother: £166k (£120k mortgage + £46k from above)
That all adds up, but how will the property value be apportioned?
SDLT will be at the rate for a property worth £286k plus the 3% surcharge. And there will be legal costs. So, there's quite a bit of money to find. I assume your brother does not pay SDLT on the £52k worth he already owns.No reliance should be placed on the above! Absolutely none, do you hear?0 -
My bro is first time buyer and it's below 300k so no sdlt for him, I guess? I said 46 because I know we're not going to get the full 52 each once estate agent and legal fees and potential deed of trust costs are deducted0
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