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  • FIRST POST
    • daniesto
    • By daniesto 5th Jul 18, 2:09 PM
    • 23Posts
    • 1Thanks
    daniesto
    house dispute
    • #1
    • 5th Jul 18, 2:09 PM
    house dispute 5th Jul 18 at 2:09 PM
    my first post here.


    If you buy a house under your name but the deposit was paid by someone like a family member can they claim right to your house? I know in UK banks wants to know where the deposit comes from. There is no documents signed to say the money was given as a loan or gift. If the person can prove it to the bank that they paid the deposit and only using your name to buy the house (all the deeds/documents/direct debits are in you name) will the bank fault you and you would lose the house?
    many thanks
Page 3
    • daniesto
    • By daniesto 5th Jul 18, 9:10 PM
    • 23 Posts
    • 1 Thanks
    daniesto
    Thank you for all your replies.
    • InterestedParty2018
    • By InterestedParty2018 6th Jul 18, 9:46 AM
    • 128 Posts
    • 71 Thanks
    InterestedParty2018
    I don't recall seeing in this thread, the original genuine agreement (albeit verbal) between Paul & Tom.

    1. Why did Tom not want to be named on the Title? (Tax? Matrimonial?)
    2. At some stage you must have had a conversation along the lines of:

    Paul: I want to buy an investments property, but dont have sufficient for a deposit.
    Tom: I have a few spare 's and I can help you out with a gift/loan?
    Paul: Cool!
    Tom: But I want it paid back.
    Paul: Okay, how & when?

    ****This is where it gets interesting*****
    Did it go:

    Tom: After rental income pays the mortgage repayment/running costs/taxes, I will take the difference until the deposit sum is paid back. Thereafter the property is yours, as is the profits.

    Or:

    Tom: I want to receive payment of all income/profits from the investment indefinitely and when I pass on you can keep the profits? (unlikely hey!)

    Or:

    Tom: Actually, dont worry about paying me back the deposit, it is a gift.

    Sorry if I have missed this in the 3 pages of threads.

    I just dont know how someone can exchange large sums of money (both in the form of the deposit and then years of rent) without having a clear understanding or the arrangement.

    I don't know the legal position, but I guess any lawyer/judge would ask the same questions. If Tom legitimately wanted to invest in this manner, he will need to explain why he was not named on the title. If not on the title, why did he not get a charge placed on the title for the value of the investment. Or, why did he not get a written contract in place to clearly set out the basis of the loan and the repayment arrangements.
    • wesleyad
    • By wesleyad 6th Jul 18, 10:12 AM
    • 338 Posts
    • 286 Thanks
    wesleyad
    I'd be very careful here, the tax implications could be massive. You say the EA "sorted the tax". What does that mean? Were they deducting tax at source (unusual for a domestic landlord). Was Tom definitely receiving rent with tax deducted? You would still have to self assess to show you had paid, did you do this?

    If the house is in your name you have to declare, but all the money was going to Tom? I'm no tax expert, hopefully someone can jump in here, but that would seem like you are receiving rent, paying tax, and then gifting it to Tom? In which case you could argue the gift has been repaid.
    Last edited by wesleyad; 06-07-2018 at 10:14 AM.
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