runnymanParticipant@runnymanJoin Date: 2012Post Count: 4
Wondered if anyone can help. I am planning on investing with a friend whereby I put up the initial deposit and they live in the property themselves and pay any associated loan and living costs. Are there any tax implications whatsoever for me? I would continue to live in the current property I own.
As we would be 50% joint owners just wanted to make sure that there were no capital gains/rental income implications by entering into this arrangement.
Thanks for your help!
PeteBennyModerator@bennyJoin Date: 2002Post Count: 1,376
One issue that caught me some years ago (going 50:50 with another person) had my Bank “deeming” that each of us was to receive HALF of any rent, and yet each one of us was “jointly and separately liable for the WHOLE loan amount”. Killed it when going for further finance….
I suspect your situation may have at least that one problem area. Do check any intended moves with solicitor and/or accountant and/or financier BEFORE going ahead with anything. Too late once you are signed up.