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  • FIRST POST
    • Hali-5
    • By Hali-5 9th Jul 18, 12:46 PM
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    Hali-5
    Names on deeds and mortgage different??
    • #1
    • 9th Jul 18, 12:46 PM
    Names on deeds and mortgage different?? 9th Jul 18 at 12:46 PM
    Hi all! So I am looking to buy a house with my partner with my mum giving/loaning us money for the deposit. The grand plan was for her to buy it with us rather than gifting me the money (which is then subject to capital gains tax) and therefore be on the deeds but not be on the mortgage. She wonít be living in the house. Is this allowed? To have two people on the mortgage but three on the deeds?
    Thank you
Page 1
    • Pixie5740
    • By Pixie5740 9th Jul 18, 12:55 PM
    • 12,907 Posts
    • 18,556 Thanks
    Pixie5740
    • #2
    • 9th Jul 18, 12:55 PM
    • #2
    • 9th Jul 18, 12:55 PM
    Hi all! So I am looking to buy a house with my partner with my mum giving/loaning us money for the deposit. The grand plan was for her to buy it with us rather than gifting me the money (which is then subject to capital gains tax) and therefore be on the deeds but not be on the mortgage. She wonít be living in the house. Is this allowed? To have two people on the mortgage but three on the deeds?
    Thank you
    Originally posted by Hali-5
    What is subject to Capital Gains Tax? The gift?

    I think it might only be HSBC who will allow more people named on the deeds than the mortgage.

    What is the objective here because there are alternative solutions which are better than what you are proposing. Does your mother want to gift you the money or does she want to lend you the money?
    • Mojisola
    • By Mojisola 9th Jul 18, 12:57 PM
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    Mojisola
    • #3
    • 9th Jul 18, 12:57 PM
    • #3
    • 9th Jul 18, 12:57 PM
    The grand plan was for her to buy it with us rather than gifting me the money (which is then subject to capital gains tax)
    Originally posted by Hali-5
    There's no tax on gifts.
    • davidmcn
    • By davidmcn 9th Jul 18, 1:59 PM
    • 8,497 Posts
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    davidmcn
    • #4
    • 9th Jul 18, 1:59 PM
    • #4
    • 9th Jul 18, 1:59 PM
    There's no tax on gifts.
    Originally posted by Mojisola
    ...whereas mum's share of the property would be subject to CGT (assuming it's not also her principal residence).
    • kingstreet
    • By kingstreet 9th Jul 18, 2:08 PM
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    kingstreet
    • #5
    • 9th Jul 18, 2:08 PM
    • #5
    • 9th Jul 18, 2:08 PM
    It would make more sense for her to take a second charge over the property to protect her "gift."

    Some lenders will accept this.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • Mojisola
    • By Mojisola 9th Jul 18, 2:10 PM
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    Mojisola
    • #6
    • 9th Jul 18, 2:10 PM
    • #6
    • 9th Jul 18, 2:10 PM
    ...whereas mum's share of the property would be subject to CGT (assuming it's not also her principal residence).
    Originally posted by davidmcn
    Not if the money was a gift - she won't own a share of the property.
    • davidmcn
    • By davidmcn 9th Jul 18, 2:22 PM
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    davidmcn
    • #7
    • 9th Jul 18, 2:22 PM
    • #7
    • 9th Jul 18, 2:22 PM
    Not if the money was a gift - she won't own a share of the property.
    Originally posted by Mojisola
    I was meaning if the OP is following their plan of mum owning a share of the property.
    • Hali-5
    • By Hali-5 9th Jul 18, 2:42 PM
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    Hali-5
    • #8
    • 9th Jul 18, 2:42 PM
    • #8
    • 9th Jul 18, 2:42 PM
    Ultimately the aim is to gift and currently trying to avoid the capital gains tax. We were under the impression that cash gifts were subject to CGT but if she gifts her her part of the house at a later date then houses arenít subject to CGT.... I stand to be corrected tho
    • Hali-5
    • By Hali-5 9th Jul 18, 2:43 PM
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    Hali-5
    • #9
    • 9th Jul 18, 2:43 PM
    • #9
    • 9th Jul 18, 2:43 PM
    Also thanks for all the replies! I wasn!!!8217;t expecting everyone to be so helpful to a newbie
    • Pixie5740
    • By Pixie5740 9th Jul 18, 2:48 PM
    • 12,907 Posts
    • 18,556 Thanks
    Pixie5740
    Ultimately the aim is to gift and currently trying to avoid the capital gains tax. We were under the impression that cash gifts were subject to CGT but if she gifts her her part of the house at a later date then houses arenít subject to CGT.... I stand to be corrected tho
    Originally posted by Hali-5
    It's the opposite way around. There is no gift tax, capital gains or otherwise in the UK so your mum is free to gift you as much cash as she likes. Providing your mother survives for 7 years after making the gift it shouldn't be subject to Inheritance Tax either.

    However, when disposing of property that is not your main residence and has never been your main residence that will trigger a capital gains tax liability.
    • Hali-5
    • By Hali-5 9th Jul 18, 5:51 PM
    • 4 Posts
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    Hali-5
    Brill, thank you, any idea where official I can find that written down to show her?
    Thanks for your help
    • Pixie5740
    • By Pixie5740 9th Jul 18, 6:01 PM
    • 12,907 Posts
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    Pixie5740
    Capital Gains Tax
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