A customers neice is purchasing a flat with a deposit of £50,000. However as a student she has no income.
The Auntie is lending the balance of the money as mortgagee and would like the niece to be responsible when it comes to paying a fair amount of 'interest@ for the loan. As there is no income to service the loan she doesn't know whether to accrue this (and pay income tax on it each year as income) or to place herself as a tenant in common for the value of the loan compared to the overall value of the property and take her share of any gain when the time comes.
This must be quite common - does anyone have any suggestions?
Leonard James