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 ivorylounge Your Own Question
Category: Law
Satisfied Customers: 33376
Experience:  Barrister at Self Employed Barrister
Type Your Law Question Here...
ivorylounge is online now

We owe my parents approximately the equity on our 2nd property.

This answer was rated:

We owe my parents approximately the equity on our 2nd property. We have never worried about owing them that money because we had the equity. Now we are planning to sell the property and understand any profit will be subject to capital gains tax. In order to be able to pay back my parents the full amount we owe without losing some to capital gains should we arrange for them to put a 2nd charge on the property (we can prove through bank statements what they have lent us) and if so how do we go about it?
The best way to go about undertaking a second charge on the property is to instruct a conveyancing solicitor to draft the documents and then get them registered at the Land Registry - it is actually very straight forward - a high street firm of solicitors would be able to undertake thee work for a cost of about £800. Happy to discuss. Please rate positive.
Customer: replied 2 years ago.

Thank you re how to instruct a 2nd charge but will this make the equity amount payable to my parents exempt from capital gains as this is our 2nd property?

well it will not be an issue for capital gains tax if you are simply repaying a loan. Please rate positive.
ivorylounge and other Law Specialists are ready to help you