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Remus2004, Barrister
Category: Property Law
Satisfied Customers: 2456
Experience:  Over 5 years in practice.
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We co owned a property with friends then found a flat to buy

Customer Question

HiWe co owned a property with friends then found a flat to buy as a main residence. We moved in but decided to completely renovate. At the time much of our funds to do so was tied in to the co owned flat. Rather than sell up to release equity our friend contributed to the renovation fund with the idea we would transfer over our equity at some point and in exchange we paid all the running costs for the co owned flat.We later sold the renovated flat, gave back his contribution and also transferred the equity share we had in the co owned flat making him sole owner as we wanted to have the funds to buy another place. The original amount invested by us in the co owned flat was less than stamp duty payable levels but we also agreed our friend would pay back the original buying costs incl stamp duty and legal fees plus all amounts we had spent on the co owned flat incl furnishings etc.Since the total amount was similar to the amount that he put into the renovation we did of the other flat we looked at it as a settled amount as such and when we did the transfer of deeds indicated it was a gift to simply the process as no stamp duty was due and we were even stevens pretty much.We did leave a trail for ourselves though in that we first transferred funds to repay the renovation amount back to him and he then would transfer funds in the bank for the equity. The main issue now is that we are buying a new flat and need to explain the amounts transferred to him and from him which is fine but since the title transfer from us was registered as a gift its harder to show the journey. Are we able to update the land registry info . No tax is due still but would show equity value even though we ended up being even in terms of the original amount he gave for the renovation
Submitted: 1 year ago.
Category: Property Law
Customer: replied 1 year ago.
Posted by JustAnswer at customer's request) Hello. I would like to request the following Expert Service(s) from you: Live Phone Call. Let me know if you need more information, or send me the service offer(s) so we can proceed.
Expert:  F E Smith replied 1 year ago.

Did the solicitor handle these transfers for you? So was the transfer down as a gift whereas the reality was that money changed hands all be dressed up as some kind of refund or I misunderstanding it?

Customer: replied 1 year ago.
i think you are misunderstanding it. Its propably me, rather convoluted!
Expert:  F E Smith replied 1 year ago.

I did read the question several times and it’s the to and fro between the different properties and parties and finance which is the problem in me understanding.

Do you want to try explaining it in a different way please?

Did solicitors deal with these transfers?

Customer: replied 1 year ago.
they did, dont worry will wait till tues to speak with them as they are reputable . I get the reason why its confusing :)
Expert:  F E Smith replied 1 year ago.

No problem. I will opt out to see whether another expert can untangle the facts to assist over the weekend.

Customer: replied 1 year ago.
Thanks for your help.
Expert:  F E Smith replied 1 year ago.

No problem. Someone will hopefully pick this up today or over the next day or so.

Customer: replied 1 year ago.
Have heard back from solicitor. Its all good. U can in fact close the query as all makes sense now and all done properly