How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Alex J. Your Own Question

Alex J.
Alex J., Solicitor
Category: Law
Satisfied Customers: 3497
Experience:  Solicitors 2 years plus PQE
13113900
Type Your Law Question Here...
Alex J. is online now

My partner and his brother own a property that they have been

Customer Question

My partner and his brother own a property that they have been using as part of their Plumbing Business. They purchased it 15 years ago at a cost of £65,000. This property is now being converted into 2 x 2 bedroom terraced houses and 1 x 1 bedroomed terraced house. The first property is just about finished with the cost of the renovation of the housed being paid for by the business.
In order to fund the renovation of the other 2 properties, my partner (who owns 50% of the whole property) and myself who have nothing to do with the business, would like to buy the newly renovated 2 bedroom house at a cost of £170.000. We have got a deposit of £45.000 to put down and hence would like a mortgage for the balance. We are constantly coming up again brick walls at the moment, due to the fact that they is now mortgage on the property as it is part of the business.
Submitted: 2 years ago.
Category: Law
Expert:  Alex J. replied 2 years ago.
Alex J. :

Hi, Thank you for your question and welcome. My name is ***** ***** I will assist you.

Alex J. :

What is the mortgage on the property?

JACUSTOMER-onml4jbe- :

There is no mortgate

Alex J. :

Hi, Thank you. ***** understand it would want to buy the property from the Business - what exactly is the brick wall you face? Is that you cannot get a mortgage?

JACUSTOMER-onml4jbe- :

Hi Alex,

Alex J. :

Hi

JACUSTOMER-onml4jbe- :

The problem we have come across is that my partner who owns 50% of the property will be buying off the partnership and this is where we have the problem.

Alex J. :

Hi, Thank you. Are the bank refusing to lend because of this?

JACUSTOMER-onml4jbe- :

Yes in a word.

Alex J. :

Hi, Thank you. Why do you need a mortgage at all? Can the partnership not effectively lend you the money so you repay the partnership and effectively "deferring payment" of the purchase price.

Alex J. :

In return your husband could waive his share of the profit?

Alex J. :

This would effectively be a paper transaction, the partnership would have a charge over the property until you sell or repay the "loan" so to speak.

JACUSTOMER-onml4jbe- :

My partner and myself are wanting to purchase it as an investment and the business who is not always flush with money require the income from the purchase of the first property to finance the renovation of the other two properties.

Alex J. :

Hi, Thank you. Do they require the whole £170k immediately?

JACUSTOMER-onml4jbe- :

Yes they would.

Alex J. :

Ok thank you. What have the bank said is the problem - do they not like the fact that your husband is going to profit from the sale or do they have problem with the valuation?

JACUSTOMER-onml4jbe- :

The main problem is my partner buying it off the joint business.

JACUSTOMER-onml4jbe- :

Hi Alec,

JACUSTOMER-onml4jbe- :

Hi Alec, I hope you able to reply back to me when you get a moment. My partner and I are just hitting our heads against a brick wall as mortgage lenders are not prepared to loan us money. Obviously I am aware there will be capital gains tax involved with the profit from the sale. Please help. Thanks,

What Customers are Saying:

 
 
 
  • Thank you so much for your help. Your answers were really useful and came back so quickly. Great! Maggie
< Previous | Next >
  • Thank you so much for your help. Your answers were really useful and came back so quickly. Great! Maggie
  • A quick response, a succinct and helpful answer in simple English. I believe I can now confront the counter party with confidence -- worth the 30 bucks! Rick
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther
 
 
 

Meet The Experts:

 
 
 
  • Jo C.

    Jo C.

    Barrister

    Satisfied Customers:

    30316
    Over 5 years in practice
< Last | Next >
  • http://ww2.justanswer.com/uploads/EM/emus/2015-7-7_192327_bigstockportraitofconfidentfemale.64x64.jpg Jo C.'s Avatar

    Jo C.

    Barrister

    Satisfied Customers:

    30316
    Over 5 years in practice
  • http://ww2.justanswer.com/uploads/BE/benjones/2015-12-1_0437_ennew.64x64.jpg Ben Jones's Avatar

    Ben Jones

    UK Lawyer

    Satisfied Customers:

    11553
    Qualified Solicitor - Please start your question with 'For Ben Jones'
  • http://ww2.justanswer.com/uploads/BU/Buachaill/2012-5-25_211156_barrister5.64x64.jpg Buachaill's Avatar

    Buachaill

    Barrister

    Satisfied Customers:

    1754
    Barrister 17 years experience
  • http://ww2.justanswer.com/uploads/JO/jojobi/2013-3-19_0265_maxlowryphoto.64x64.jpg Max Lowry's Avatar

    Max Lowry

    Advocate

    Satisfied Customers:

    894
    LLB, 10 years post qualification experience
  • http://ww2.justanswer.com/uploads/UK/UKLawyer/2012-4-12_9849_F2.64x64.jpg UK_Lawyer's Avatar

    UK_Lawyer

    Solicitor

    Satisfied Customers:

    750
    I am a qualified solicitor and an expert in UK law.
  • http://ww2.justanswer.com/uploads/KA/Kasare/kasare.64x64.jpg Kasare's Avatar

    Kasare

    Solicitor

    Satisfied Customers:

    402
    Solicitor, 10 yrs plus experience in civil litigation, employment and family law
  • http://ww2.justanswer.com/uploads/OS/osh/2015-7-7_19268_gettyimagesb.64x64.jpg Joshua's Avatar

    Joshua

    Lawyer

    Satisfied Customers:

    8199
    LL.B (Hons), Higher Prof. Dip. Law & Practice