charging orders

[nightwatch]

sorry if in wrong place, but couldnt find where to put this question

a few of the DCAs that contact me often state that if we don't continue paying our reduced payments we MAY be taken to court (not happened yet)
If a CCj is awarded, they may apply for a charging order on the house
(the mortgage is paid off)
Now i was just wondering if it was legaly possable to sell our house to our daughter (who lives with us) for say £500, and then rent it back off her for say £5 a month and we pay all bills

any one??

[Never-In-Doubt]

Re: charging orders

The odds of a judge granting an order of sale is slim.

Why nor remortgaged to pay the debts, easier solution no?

You can give the house to whoever you want just speak to a solicitor

[cymruambyth]

Re: charging orders

I think there are tax implications for this action.

[swanfan]

Re: charging orders

There are implications to this--> HM Revenue Customs: Passing on your home to your children

[nightwatch]

Re: charging orders

There are implications to this--> HM Revenue Customs: Passing on your home to your children

I would not be passing it on ,I would be selling it to her

[nightwatch]

Re: charging orders

The odds of a judge granting an order of sale is slim.

Why nor remortgaged to pay the debts, easier solution no?

You can give the house to whoever you want just speak to a solicitor

cannot get a mortgage, hubby only gets a works pension

[pompeyfaith]

Re: charging orders

Giving your home away and continuing to live in it

You can continue to live in your home as your primary residence after giving it away, provided you pay a market rent to the new owner. Bear in mind that the new owner may have to pay Income Tax on the rent you pay them.
If you don't pay a market rent, the gift will be considered a 'gift with reservation of benefit' and the house may be subject to Inheritance Tax.

I do not think £5 a mth would be considered a market rent, a market rent would be the going rate in your area on a similar property.

Regards

[Never-In-Doubt]

Re: charging orders

I would not be passing it on ,I would be selling it to her

Then why not sell it for a nominal fee of £1 and then get a solicitor to draw up a deed that suggests you live it in rent free until you die upon which it is then returned to the rightful owner, that paid you £1. If however you wanted to divvy the house up in a will, you'd sell it for £1 with a % share to each of the persons in the will - so say you have 10 kids to share it, you'd give each child a 10% equity share upon your death, sold now for £1 cash!

Its easy to do if you get the right solicitor. I know of someone that sold their house, gave funds to a member of the family to go and buy a house for them in their name (ie the family members) thus in essence the person owns a home in reality but legally its the other family member that actually owns it (as they paid for it and have the deeds)...

Seek a damn good solicitor, they can sort this. However if you do this a month before a CO is due to be issued, then chances are it'd get you in bother as an obvious avoidance of the system....

[Wishfull]

Re: charging orders

i too looked into this,but the court can go back 5 years and over turn it as an asset sold at undervalue,i have debt only in my name and changed the deeds to tennants in comman with my ex getting 99%of any equity and me 1% again it can be overturnned but my clock is ticking away you must get a good soliceter mine suggested getting santanders permission to do it,i owe them aprox 30k he said the departments dont talk to each other he was right they agreed to it so hopefully if they go for co we can argue they agreed to the change my house is worth about 225k so the most they can get is 2.5 k HOPEFULLY LOL

[Seamus]

Re: charging orders

Someone please correct me if I'm wrong, but I don't think you need to change any deeds to become ''tenants in common''. All it takes is a notice of severance from one partner to the other, stating that you both now hold the ownership of the house as tenants in common. The percentage you both own is entirely up to you. Also, I believe that even though its advisable to inform the land registry, its not absolutely necessary. I would be more than happy for someone to correct me on this.

Seamus

[garlok]

Re: charging orders

Careful here be careful! Look at the recent Boycott case in the High Court. You MUST get a solicitor who really knows what they are doing to draw these things up.

"Tenancy in Common" is NOT "Joint Ownership" and the lawyers sometimes get it wrong as well. I have a will to execute when the inevitable happens where there is a tenancy in common with a majority and minority "share holding". One party is already deceased and the estate has been left to two sibling daughters who are not blood relations of the surviving tenant in common. Deeds do indeed have to reflect the state of ownership and occupation in these circumstances and most people use the method of a Trust it would seem.

Joint ownership leaves ALL (100%) of the property to the surviving partner regardless of any will or estate obligations. There are differing tax obligations as well and please remember now that a surviving spouse has entitlement to the first £400,000 of a deceased spouse's estate if no spousal provision has been made in the deceased's will. I do not know entirely in the light of modern law and enlightenment if that applies in full to a common law spouse but I think with everything else they are entitlled to it would apply.

Frankly it's bloody minefield, and I have insisited that a solicitor in my case be appointed joint executor of the estate in question. My suggestion would be find a good probate lawyer before entering into any form of agreement as suggested here.

regards
Garlok

[Seamus]

Re: charging orders

Yes Garlok, I remember when reading about tenants in common, that its extremely important that you write a will if you change to TIC, as when one partner dies it doesn't automatically all go to the surviving partner. As long as a will is made though, its still relatively simple to change from Joint tenants to tenants in common, then declare the percentages, simply by one partner writing to the other and severing the joint tenancy.

Seamus

[garlok]

Re: charging orders

I have just been given a copy of an article about the Boycott case taken from the Telegraph of Saturday 29th October 2011 in the "Telegraph Money" section by reporter Ian Cowie. Its worth looking up if you have an interest in Joint Ownership and Tenancy in Common issues.

Explained very much in layman's terms and provides an insight into the contradiction and paradox of it all. Some pretty powerful solicitors like Hogan Lovell have contributed to the article.

regards
Garlok

[BBoo]

Re: charging orders

It is a very similar situation to people who want to dispose of their share in a jointly owned property prior to bankruptcy. As Garlok quite correctly says, it is very complex, and you need to be very careful that whatever is done cannot be overturned as clear avoidance.

Nightwatch - apologies if I've missed it, but do you have a debt diary started where you've set out your debts. There may be other options that you are missing.