Hello to everyone, I am a new user so apologies if this has been asked before but?
The in laws had the right to but their council house in 1994 but said that they could not afford it, liked the way they could just call the council if anything wanted doing etc. I said to the father in law well just send off for the paperwork as you don't know that you cant afford it until you see what the figures are. Figures came through and he could afford it but did not want the repairs problem if anything went wrong so he asked me if I would take it on by paying the mortgage, legal costs, survey etc, doing anything he wanted doing on the house and he would pay £100 per month rent which was put towards the mortgage. We agreed to this as we were a close family and it would save them quite a bit of money which came in handy as they were both pensioners. The deed of trust stated that he was responsible for the upkeep of the inside and I was for the outside, he insured contents, I insured the buildings and upon the death of the last survivor the house would pass to the wife and I. There was also a clause that the rent/contribution to the mortgage would never change and any mortgage repayable amount over that was to be paid by the wife and I. At the time of inception the rent on the property was £240 pm and when he died this year, last survivor, the applicable rent would have been £636 pm so it did save them a lot of money over the years. Whilst I appreciate that the house is now ours and worth approximately £100k the reason we entered into this agreement was ultimately to save them money with the benefit in 20, 30, 40 years time that the house would become ours.
The question I would like to ask is whether we are liable for CGT as the property was never bought as a buy to let or an investment but purely to help the wifes parents. Regards, Chris .
The in laws had the right to but their council house in 1994 but said that they could not afford it, liked the way they could just call the council if anything wanted doing etc. I said to the father in law well just send off for the paperwork as you don't know that you cant afford it until you see what the figures are. Figures came through and he could afford it but did not want the repairs problem if anything went wrong so he asked me if I would take it on by paying the mortgage, legal costs, survey etc, doing anything he wanted doing on the house and he would pay £100 per month rent which was put towards the mortgage. We agreed to this as we were a close family and it would save them quite a bit of money which came in handy as they were both pensioners. The deed of trust stated that he was responsible for the upkeep of the inside and I was for the outside, he insured contents, I insured the buildings and upon the death of the last survivor the house would pass to the wife and I. There was also a clause that the rent/contribution to the mortgage would never change and any mortgage repayable amount over that was to be paid by the wife and I. At the time of inception the rent on the property was £240 pm and when he died this year, last survivor, the applicable rent would have been £636 pm so it did save them a lot of money over the years. Whilst I appreciate that the house is now ours and worth approximately £100k the reason we entered into this agreement was ultimately to save them money with the benefit in 20, 30, 40 years time that the house would become ours.
The question I would like to ask is whether we are liable for CGT as the property was never bought as a buy to let or an investment but purely to help the wifes parents. Regards, Chris .
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