bil8999 Posted December 13, 2015 Report Share Posted December 13, 2015 Just been reading Melboy property scam.About a year ago a( friend) asked me if I would take out a buy to let mortgage on his sons apartment, approx. 50% of its value.He would then pay me rent which more than covers the repayments, they said they needed to do this as the developer was pushing for the sale and they were finding it difficult to get a mortgage.Can anyone see the scam in this if any. It must have been a very expensive way of securing the apartment.What are the down sides to me when they want the apartment transferring into there name?We make about £400 a month on the rent after repayments.Could it have anything to do with working tax credits?Thanks Link to comment Share on other sites More sharing options...
Richlist Posted December 13, 2015 Report Share Posted December 13, 2015 How can you take a mortgage on a property that is being sold to someone else ?None of the other questions are relevant until you resolve the first issue. Link to comment Share on other sites More sharing options...
bil8999 Posted December 13, 2015 Author Report Share Posted December 13, 2015 How can you take a mortgage on a property that is being sold to someone else ?None of the other questions are relevant until you resolve the first issue.I ended up buying it in my name on a buy to let, they paid half up front to the developer, I hold the deeds through the building society.When they come to want it transferring into there ownership what tax liability will I be liable to.It all seems a bit odd to me, but so far I have had £400 per month for over 12 months for doing nothing.Why would they have done it in this way?Can only think of working tax credit issue.Any thoughts. Link to comment Share on other sites More sharing options...
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