Parents and property

[Fedduup32]

Please be kind I’m not in a good place at the moment mentally.

In my early 20’s my parents put a rental property in my name. Not all as good as it sounds. I’m in my 40’s now and because of this property was unable to get first time buyers mortgage when I was looking for my own place so didn’t get a good deal that I could have.

Over the years whenever I bring up any conversation it ends in my mum screaming at me and threatening to put the property in one of my siblings name instead. I’m really upset as I came to visit my mum with kids and mentioned our flat is too small and I would love to get a bigger place and asked her if i sold the property how much would I get so could use as a deposit so I can get a nicer place. She got unreasonable again which resulted in me screaming at her too, not a nice thing to be honest. In the end I managed to get info from her that the rental gets £70 profit a month so in 20 years of this I asked her if I can have my money and she starts screaming at me.

After a lot of shouting today I finally learnt truth from her that she only made me buy the property as her accountant told her it will make more sense money wise to put in one of the kids name as they would have to pay tax etc. I feel really used by her but also guilty that she’s my mum but I feel sad that she never thinks about me or any repercussions it has had in my future finances and opportunities.

She doesn’t even clearly talk to me about anything to do with the property. I don’t even know if it was hers first then she put in my name for tax or first time buyers rate. I just get made to feel unreasonable if I ask any questions. My siblings were there today as well and they made me feel I am causing trouble but also admitted they glad she didn’t put in their name as they would have missed out on first time buyers with their property. I just wa t answers from her but she threatens all sorts.

I’m lying here feeling bad I brought up the topic but why can’t she just have a conversation with me about it. I don’t know what she’s hiding as she gets defensive.

@Fedduup32

Yes definitely in my name as the paperwork for new tent ants always has my name as landlord and and then bank details are in my name which I have no access to as they made me sign a letter that gives them authority to operate my account (it’s a business account) on my behalf.

Then you just declare all income- not profit for tax. The law changed several years go.

You must do a self assessment tax return?

Are you in Scotland? DM me if you are, I know women who's a tax lawyer, might be worth a chat.

Your mum telling you she shouldn't have had you is absolutely vile and abusive, OP. I'm so sorry you don't have parents who have your best interests in mind. Do you think you could go non contact with them? Are all your siblings completely under the thumb and brainwashed by them, or do you think there's anyone who would be more critical of their behaviour? This is a horrible situation for you, especially as you say you are not in the best place mentally. If not doing so already I would definitely find a good therapist and start to untangle some of this. This is absolutely not how loving parents and families behave.

Did you buy a property yourself? Because you would also owe an extra 3% SDLT if you did. You really, really need to get some proper advice on this and sort it out. You could face a huge tax bill - or worse if HMRC thinks you’re part of a tax avoidance scam.

@RincewindsHat

I don't understand all these people saying 'morally the house is not yours'. In this situation, as your parents and siblings seem to be entirely morally bankrupt themselves, morals can be put aside.

You own the property. You can take back control of it, the finances, and do what you want with it. Your parents deliberately screwed you over and continue to do so with no regard for helping you to buy your own home. It is your property, so sell it. If you feel generous, return the deposit I assume they paid (although as it seems like they bought it as a BTL maybe there was no deposit - 100% mortgages used to be a thing for BTL).

Accept that your parents are bullying, vindictive people who do not value you as you deserve to be valued and your siblings are cowardly at best and amoral at worst. You deserve to be treated better OP, and I hope you find a way to stand up for yourself here.

To add to this, to those saying ‘it’s not your house’ do you not think OP morally deserves some financial recompense for being financially inconvenienced for the last 20 years. If so how much?

If it’s £70 profit that suggests to me that there is a mortgage, whose name is this in? I agree you need to look at the title

Yes I suspect it’s been remortgaged several times and there may not be a lot of equity in it - leaving the op with a huge tax bill when it’s sold.

I doubt it’s a repayment mortgage - probably interest only, so it’s either the case above, or they are lying about the monthly profit.

As with many PPs have said you need to see a solicetor or accountant. My first step would be to establish what all the facts actually are. If then prepare a statement showing exactly how and why this arrangement is not ok - you need facts and figures.
For example rather than vaguely saying that this has cost you from preventing you benefitting from a better rate mortgage/stamp duty/Lisa why don't you carefully document exactly how much it's cost you. Include any tax cost.
You need to get a grip on what the situation actually is. An accountant or solicetor will help.

Have they helped you financially in other ways?

You need to seek legal advice on this because willingly or not you may be colluding in tax evasion. I know that this wasn't your intention and I know you had little choice but being controlled is not a legal defense and could seriously impact you.

You also need some mental health support die to the control and abuse you've suffered.

Personally I would sign over the house back to them and go NC, but easier said than done.

It's not just tax here - as a landlord you have legal obligations to the tenants and failure to comply with these can have serious consequences. You really need to get the legals sorted asap and check that your parents have sone the relevant safety checks, deposit protections etc. I'd agree that legal advice and getting together whatever information you can needs to take priority. Your family is going to try to block this so you need to act without involving them.

Speak to citizen's advice first.
Your parents have used you to facilitate tax fraud, but it will be difficult to prove you are not complicit.
You will have to pay CGT when you sell the property, but that is really not a big deal, it is the fraud aspect and tax evasion that is the real problem.
CGT is about 20% and there is no tax payable on the first 11K, as far as I remember.
There must be paperwork relating to the renting out and mortgage payments. Do your parents have an accountant or a managing agent for the property?
You will need proper legal advice but CAB should be able to help you sort this out in your head first. Your parents cannot sell or give the property to anyone else. Don't sign anything they ask you to to sign.

If it is a buy to let mortgage you will have to pay it all back to the lender, but there should be some equity in the property.
You will need proof that your parents are keeping the rent though because of the tax fraud.
Don't let this go on any longer.

What your parents are doing is financial abuse and it is ILLEGAL. Report them!

raydensolicitors.co.uk/blog/financial-abuse/

It sounds as though it’s your parent’s property as in they bought it but didn’t intend it for you just put it in your name for tax purposes. They obviously didn’t think about the repercussions but I wouldn’t feel good about selling it. You haven’t paid for it.

And this is why there is a requirement for independent legal advice in these type of situations. Feel you’ve been badly used OP, and the screaming and shouting is horrible. Good luck sorting it all out, and if there was any issue with a solicitor acting improperly in all this consider reporting it. Also worth noting that there is no longer an issue about holding deeds assuming it’s registered, your mum will just have a copy of the register, so you can get all the relevant information from the Land Registry and that doesn’t give your mum a hold over you.

To add to this, to those saying ‘it’s not your house’ do you not think OP morally deserves some financial recompense for being financially inconvenienced for the last 20 years. If so how much?
Absolutely. The value of what has been lost from not being to benefit from being a first time buyer.

OP, sadly you can't believe a word your mother says, including the £70 profit. Why? The property has been let out for 20 years so the rental income (and the value of the property) must have increased substantially over the years. If the mortgage is in your name they can't have remortgaged it or topped the mortgage up/put on a second charge without your knowledge/signature.

What information do you have in your possession? Do you know who the mortgage is with? If so, get in touch with them and ask for a statement to be sent to your house. Deal in facts, not emotions or suppositions or emotional blackmail

Talk to your DH. Formulate a plan of action to know your rights, your liabilities, your strategy in dealing with your family - seeking help with the former from a solicitor and the latter with a counsellor.

Then get on RightMove and fine out how much the house is worth. With 20 years of growth you could be in for a very nice windfall, even with CGT.

To add to this, to those saying ‘it’s not your house’ do you not think OP morally deserves some financial recompense for being financially inconvenienced for the last 20 years. If so how much?

Definitely.
I think OP needs to work out how much she’s spent on it over the years if any, how much she’s lost out by not being a part time buyer and then how much her equal share is and then tell them she wants this amount of money so they can buy it off her or she’ll sell it and keep her share and give the rest to them.

This is a shit show, I have suffered similar myself.

Place-marking incase I can help later.

So sorry - I imagine you mum is scared she is about to be exposed for how she has used you I think.

I hope you can disentangle yourself.

It's time to end this arrangement and go no contact, I think. This isn't working for you.

Add up how much you've lost financially from the arrangement, send your mother an invoice and then offer her a choice. Either she pays you that amount and you transfer the property to her or you sell the property, keep that amount and then transfer the balance to her.

This sounds like borderline financial abuse, fraud or both to me. If any conversation results in screaming and histrionics from your parents, I would maybe put it succinctly and in writing that you feel you are kept in the dark regarding the financial management of this property and you are concerned about potential financial penalties for you. Also that you can’t move on with your life and buy a home of your own to live in because of it.

I would ask for all documents pertaining to the property so you can consult a financial advisor/solicitor to discuss the best course of action for you, whether this is signing the property over to another party or ultimately putting it on the market. That it is becoming an increasing financial and emotional burden to you.

Keep all communication as evidence if there was any sort of tax/fraud investigation down the line.

If they refuse to cooperate, then I think your only option is to seek legal advice or even consider contacting the police (not sure if they have a helpline for suspected fraud/financial abuse?) although this would likely be terminal for your relationship.

So sorry OP that your parents have put you in a no-win situation.

@PotteringAlong

So have you paid tax on it? Because you’re liable for it if it’s in your name…

You will also have to pay capital gains tax when you sell it.

Bollocks. It's the person who receives the income who is liable for income tax.

And CGT is not payable on sale of your main residence.

Apart from that, great post 🙄

It's your property OP, if it's in your name. Sell it

Post redirection as presumably all letters go to you at your parents address?
Land registry check on charges against it.

Solicitors appointment for you.

If you’ve signed stuff you are aware all be it coercion. You just need to be aware of the facts, the consequences (e.g the recent rules on electricity checks) and the benefits.
As a tenant please be mindful this isn’t their doing.

-Involve a solicitor
-Sell the property
-Go no contact with your parents (+ siblings if they are awful too)

If you are the registered owner of the property you can get your own copies of the deeds etc, you don't need access to theirs.

@MissLucyEyelesbarrow - it can't be her main residence she's never lived in it.