Morning
Just had a meeting with someone who acted as a guarantor for their son's mortgage. It was his only house, his ppr. But the mother was put onto the deeds of the property. She put no money into the house and took no money from the sale (the son sold the house after a couple years kept the profit and moved somewhere else).
So, land registry has of course shown that the mother was on the deeds and HMRC have said that she therefore owes CGT on the sale.
She feels that as she put no money in and took no money out (all the profit on the house went to the son) she shouldn't pay CGT. She thought it was just a guarantor for the mortgage.
Anyway, after all that, my question is please, Is it usual for a guarantor to be put on the deeds?
Replies (5)
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I don't believe guarantors go on the 'deeds', and therefore if Mum's name was on the 'deeds' (and only her name) then it's her house, no matter what she may have wanted.
Just a thought
But was she holding it as a bare trustee for the son perhaps. Not what was intended maybe but the actual result? What did the solicitor who dealt with the original transaction think was happening?
Having recently applied for one I've been made aware by my bank that there is not really any such thing as guarantor mortgages anymore, not since the lending rules and procedures were tightened up post 2008. Just a thought but it might be the case that the only way to achieve the effect of a guarantor mortgage in this day and age is to have the guarantor be on the deeds.
Of course, this may be utter rubbish or may only apply to my bank, who knows!
When you say the mother was on the deeds, was it only her or was it her and her son on the deeds?
As with many of these enquiries
much depends on; when (did the original acquisition take place), exactly who was on the title deed and, more importantly, what (legal) advice was provided, or offered to the mother and the son. I'd guess there were would be; plenty of paperwork at the time and, many opportunities when advice may have been provided?
Establish all the facts before coming to any conclusion.