it's like this, i have a property in mind which i want to take out on mortgage and than give to a foreign national, Australian actually. what i am thinking of doing is, i take out the property and pay the deposit and every thing and than once every thing is sorted, give it to that person who lives in Australia, as a gift. the mortgage can be sorted out by renting out the property. what i need to know is, is it possible under current law in the UK. initially when i take out the property i will be the owner but later on when things are sorted and want to transfer it as gift i want that person to be the owner and not me. the house can still be rented and no worries for the mortgage. is it possible to do that or some thing similar. your help is appreciated. cheers.
2006-12-30 08:28:15 · 6 answers · asked by T m 1 in Business & Finance ➔ Renting & Real Estate
I understand that the house will be the property of the mortgage lender until you have repaid the loan in full. This sounds fraught with difficulty to me and I suggest you seek professional advice/assistance from a housing solicitor before you take any further steps. Contact the Law Society for details of local solicitors with expertise in this matter.
Good luck and Happy New Year.
2006-12-30 09:32:52 · answer #1 · answered by paul h 4 · 0⤊ 0⤋
My only question as I live in the states is would your mortgage holder allow you to do this without paying off the mortgage first. I do not think it is a question of law but simple logic. No one would allow you to give the property that you do not fully own. Having put a deposit does not give you total deed, the bank still owns it with you. I would consider checking with a barrister* who deals in this before doing anything
2006-12-30 08:48:55 · answer #2 · answered by Anonymous · 0⤊ 0⤋
That is a dumb idea as you phrase it (to be really blunt).
Here is why:
1) Many lenders have a 'due on sale or transfer' clause in their contracts. As soon as the title transfer is discovered the entire amount is potentially due (called acceleration clause)
2) YOU not the Australian National will be liable for the mortgage. If you want to take out another loan in the meantime you will likely be denied because the first one will still show on your records and it will appear that you are over-extended.
3) ... and what happens if it is NOT rented out for a few months. Who is going to cover THAT, along with maint. costs and management. YOU not him/her are responsible to the mortgage holder for those costs (again see your accelleration clauses).
There are more reasons but...like I said.. you have not thought this thru... its a dumb idea all around.....
.
2006-12-30 09:41:30 · answer #3 · answered by ca_surveyor 7 · 0⤊ 0⤋
The inland revenue may think that you are attempting to evade inheritance tax, or worse.
.The mortgage provide would not be prepared to enter into this arrangement, no matter how altruistic you appear to be.
2007-01-03 04:57:35 · answer #4 · answered by BRIAN S 3 · 0⤊ 0⤋
i dont think you can sign a house over to someone untill its paid for but i might be wrong i just think that cos i couldnt sign my half of a shared house over to someone cos it was still under a mortgage to me.
2006-12-30 08:31:53 · answer #5 · answered by Anonymous · 0⤊ 0⤋
you will have obstacles all the way but most of all your solicitor will advise you that you could be suspected of evading taxes .I/tax and Inh/tax especially and he might refuse to act for you but having said all that go into it a bit more fully there may be a way to do this perfectly legal and condoned Good Luck
2007-01-03 06:08:17 · answer #6 · answered by srracvuee 7 · 0⤊ 0⤋