house dispute

foxy-stoat · 5 July 2018 at 4:00PM

3) Did Paul commit mortgage fraud by not declaring the deposit come from Tom or the terms of the "loan"?

RubyHouse · 5 July 2018 at 4:33PM

How long has this been going on for? I dont think Tom has any right to the property unless it was written into the contract/mortgage. The proof of funds regulation only came into force in 2017 (I think - please someone correct me if I am wrong).
As there was nothing official drawn up, he has nothing to prove he has any right to the house. You have been paying the mortgage so this will work in your favour, worst case scenario, he will receive back the money he paid in (arguably this has been paid in rental income already).
It seems crazy to think that a someone would assume right to a house or part of a house without having any legal documentation to back this up.

Regarding the rental income, if you feel he has no right to receive this, simply ask the tenant or letting agent to change bank details.

daniesto · 5 July 2018 at 5:35PM

lisyloo wrote: »

Just to confirm. Am I correct in saying Tom has absolutely no proof whatsoever that he paid the deposit?

As far as I am aware he has no proof. He can only prove if ever anything is that he transferred the money but there is no documents signed to say why he gave me that money.

daniesto · 5 July 2018 at 5:38PM

Fosterdog wrote: »

How long has this been going on? For "Tom" to have made £70k profit from the house from £200 a month rent profit would have taken almost 30 years, then add on the time to pay back the original deposit and it could be over 30 years.

This has been going on for more than 15 years. First 5 years were repayments then it was interest only which was as little as £230 but it was rented out for £1300. 70k was the lowest estimate but Tom had it good.

Pixie5740 · 5 July 2018 at 5:41PM

I shall ask again, who has been declaring the rental income to HMRC?

Another question, who has been responsible for the repairs and maintenance of the property for the last 15 years?

daniesto · 5 July 2018 at 5:47PM

But it was a mutual agreement that Tom got the rent money right?

Yes mutual, we agreed on a verbal principle because of my mum.

What was the agreement regarding the deposit/house ownership?
There is no agreement whatsoever, none was made, not verbally nor by a legal document.

What does that mean. The same % of the equity that the deposit represented?
If I ever sell the house he wants a share.

So that's contrary to the original mutual agreement in the first quoted statement?
just a verbal agreement.

Apologies but we need to get the bottom of the details.

glentoran99 · 5 July 2018 at 5:50PM

daniesto wrote: »

What does that mean. The same % of the equity that the deposit represented?
If I ever sell the house he wants a share.

if his deposit was 10 % of the value, he gets 10% of any amount left over when the mortgage is paid off

so if its sold for 180,000 and the remaining mortgage is 100,000 he gets 8000 off the sale

Pixie5740 · 5 July 2018 at 5:50PM

Tom would only be entitled to the rent money if he was the beneficial owner. If your mutual agreement was that Tom received the rent money then it sounds as if the mutual agreement meant Tom was the beneficial owner.

It's either that or you've been evading tax for 15 years.

daniesto · 5 July 2018 at 5:55PM

Caz3121 wrote: »

to confirm
The property is in Paul's name only and Paul is paying the mortgage
It is currently rented out (was this a BTL mortgage?) and Paul receives no rental as it all goes to Tom...does he see this as 'getting his money back'?
who is declaring the rent for tax purposes?

Yes property is in Paul's name. The deed has his name only no other third parties.

Yes it just got rented out after BTL mortgage and I have declared for HMRC.

I moved to that property 2 years ago and stopped Tom getting rent money. I spent £25000 refurbing it to luxury living because Tom & my mum said he will give me that money back which it never happened. I was living in that property for last two years paying £1000 repayments. This whole thing started to kick in after Tom seeing how good that property was and what I wanted to do with it. I repeated told him he made enough from it but he disputed.

Pixie5740 · 5 July 2018 at 5:59PM

Are you now saying that you received the rent money and not Tom?

How did the mortgage payments jump up to £1,000 a month?

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house dispute

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