Finding the money LC19 - Remortgage / Equity

[webberg]

Insolvency and the options there are a very specialist area.

I would very much recommend that you seek professional advice and/or make use of the various charities who are in the debt management space.

For example, I am aware that transactions which move assets from one party to another and where the first party then goes into insolvency, can be reversed by a trustee in bankruptcy if they were in the previous (I think) 5 years.

Like I say a specialist area.

We do not do insolvency work but we have very good contacts with a couple of firms we can recommend. PM me if you want the details. (And no, we do not get a kick back).

[Loan Ranger]

So here's another - possibly obvious - question: if, as in my case, I jointly own the house (my only asset) with my husband, can ownership be transferred to his name only, and if so how does this sit with any demands for payment from HMRC?

HMRC can only lay claim to your share of the equity in the house by bankrupting you.

If they do this, the trustees in bankruptcy can set aside any disposals of assets at below market value in the previous 5 years. In other words, this would backfire on you.

If you offer to enter a TTP, HMRC are unlikely to petition for bankruptcy, and the house would be safe.

[superbean]

So here's another - possibly obvious - question: if, as in my case, I jointly own the house (my only asset) with my husband, can ownership be transferred to his name only, and if so how does this sit with any demands for payment from HMRC?

We still have a mortgage on the home and have been working hard to try to pay this off over the last twelve years.
APNs, LC2019 and all other noxious demands from HMRC will put an end to that :-(

[Loan Ranger]

It's worth finding out what sort of payment plan HMRC would agree to.

You may be able to get enough years to pay that you don't need to remortgage.

[DOT COM]

Piebaps lets clarify some issues here.

While i appreciate your sentiments about keeping people on the straight and narrow you should be mindful that many many people on this forum are really up sh i a t creek with VERY FEW options . The HMRC nor AML are playing straight at all and using ordinary peoples lives in a game of chess. That both of these bodies are not playing a far from fair/ straight game should not be forgotten in a persons personal estimation of their subsequent choices.


There are a large number of people in a desperate situation.
Some about to lose their home, their marriage, bankruptcy etc
Some are suicidal and openly discussing this on the forums
Many many more ( a high majority it would seem) are suffering with severe mental & emotional heath issues due to the the HMRC imposing an unfair retrospective tax.
AML & HMRC playing a devils game with ordinary individuals and families lives.

If a person was in the position where they had options at their discretion to keep the family home afloat with their with wife/ husbands kept in it and it also kept them from contemplating or acting on suicide they would be foolish not to evaluate the risks and consider taking that option.

Personally im in the fortunate position i can settle. Others are facing what seems to them like a literal death sentence. I know how desperate they must be. Lets not close options for them. Agreed though they muse are aware off the potential outcomes and then evaluate.

The professional tax advisers ( im not sure you are one) are greatly appreciated on here and their input in invaluable but lets be mindful of the game some find themselves in. Lets not unnecessarily frighten those who are caught in the HMRC/AML headlights. Many as i expressed above are at or on the edge.



Lastly without spending hrs researching the outcomes oneline for evidence i would suggest there will be next to Zero cases of a person borrowing i.e an extra £30k on their mortgage to improve their property and then subsequently spending it on a 2nd hand or new car. Infact it likely this activity happens all the time with no consequence and it only on a forensic finical investigation ( due to proceeds of crime where your a known drug dealer for example) that such activities would ever come to light. Obviously there will be some exceptions.

While no one is suggesting that anyone should break the law its clear the options many are facing leave the rules and operational risks and their choice of borrowing money open to interpretation.
Sometimes its better to say nothing or leave a space piebaps .........

Nobody said life would be fair and we are dealing with what we are dealing with. Playing by the rules all the time is not always the best or practical option especially when your dealing with crooked players who change the rules as it suits and appear with a hand of magically powerful cards.

Britain is full of bent banks and governmental bodies dont just take my word for it.

https://www.independent.co.uk/voices...-a6841636.html

Totally agree webberg. This is worth a read https://www.inbrief.co.uk/property-law/mortgage-fraud/

Not mentioning a large debt is well within the scope of a criminal act. Be careful folks and don't make a bad situation even worse.

[webberg]

I am currently running own Ltd.

Is there a legitimate and HMRC compliant way of borrowing say 50k from your own Ltd company based on a proper loan agreement and commercial interest rate, paying the loan back over say 5 years?

That was interest payment at least goes back in as revenue.

If you borrow from your own company, you have two tax issues to deal with.

First, if the interest rate is less than the official rate, a benefit of the difference arises and is taxable.

Second, if the company is "close", (owned by fewer than 5 people), a charge arises if the loan is not repaid within 9 months of the year end. This charge is 32.5% of the loan. The charge is repaid to the company when the loan is repaid.

[luxCon]

Loan from your Limited company?

I am currently running own Ltd.

Is there a legitimate and HMRC compliant way of borrowing say 50k from your own Ltd company based on a proper loan agreement and commercial interest rate, paying the loan back over say 5 years?

That was interest payment at least goes back in as revenue.

[piebaps]

I'll mention two things.

1. Insolvency is a difficult area and if this is something you are contemplating, proper advice will repay you rather than well meaning but anonymous advice from posters here.

2. Be very careful about applying for mortgages or loans if you are asked about what you intend to do with the funds. A deliberate falsehood in an application is likely to cause you a lot of problems.

Totally agree webberg. This is worth a read https://www.inbrief.co.uk/property-law/mortgage-fraud/

Not mentioning a large debt is well within the scope of a criminal act. Be careful folks and don't make a bad situation even worse.

[jonnieboy]

Absolutely agree with GW - I would think that some people maybe better off applying for unsecured loans from Tesco/Sainsburys etc - some 2.9-3.1% APR deals available. If you do this now, you'd have no problem honestly telling the mortgage company in a couple of years that you wanted to extend your mortgage to consolidate these loans - the reason for taking the original unsecured loans will not be asked

[webberg]

I'll mention two things.

1. Insolvency is a difficult area and if this is something you are contemplating, proper advice will repay you rather than well meaning but anonymous advice from posters here.

2. Be very careful about applying for mortgages or loans if you are asked about what you intend to do with the funds. A deliberate falsehood in an application is likely to cause you a lot of problems.

[demby]

Yes, many of us will benefit from this advice, as many of us have no other assets. Thank you.

If you jointly own your house with your partner - their half of the equity is safe and HMRC can not grab it

[Runster]

To cover my costs I'm planning to take out 40-50K from my property equity and slap it on the mortgage possibly with a longer term to make sure I can balance.

Today I spoke to my mortgage adviser and thought I'd share some [probably obvious] advice he offered me. Basically he stated that when speaking to your/any mortgage vendor, do not mention tax payments as your reason for request, you will be immediately denied.

Much better to state you plan to purchase a buy-to-let, and that some banks (Santander apparently one of them) do not request any evidence nor checks of this, again, you "plan" to, not are doing so.

Probably noddy information for many, but I certainly wasn't aware and if it helps someone it was worth a post I guess.

On this subject, has anybody else remortgaged for this, or planning to do so?

Yes, many of us will benefit from this advice, as many of us have no other assets. Thank you.

[ozzyo99]

To cover my costs I'm planning to take out 40-50K from my property equity and slap it on the mortgage possibly with a longer term to make sure I can balance.

Today I spoke to my mortgage adviser and thought I'd share some [probably obvious] advice he offered me. Basically he stated that when speaking to your/any mortgage vendor, do not mention tax payments as your reason for request, you will be immediately denied.

Much better to state you plan to purchase a buy-to-let, and that some banks (Santander apparently one of them) do not request any evidence nor checks of this, again, you "plan" to, not are doing so.

Probably noddy information for many, but I certainly wasn't aware and if it helps someone it was worth a post I guess.

On this subject, has anybody else remortgaged for this, or planning to do so?