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 bigduckontax Your Own Question
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 5175
Type Your Tax Question Here...
bigduckontax is online now

Dear bigduckomtax, My friend owes about £540,000 on a

This answer was rated:

Dear bigduckomtax,
My friend owes about £540,000 on a mortgage. He can no longer make the payments due to unforeseen circumstances.
I would like to continue to make the entire mortgage payments of around £2,000 per month to him in the form of a rental payment whilst residing at the property as tenant and making significant improvements. The only condition I would impose is that any appreciation in the property value whilst I reside there and make said improvements would come to me.
My question is; If in 5 years when I plan to sell at say £800k would I be liable to paying any tax on the imagined 300k at the point of sale?

Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.

How can you sell this property, you do not own it!

Customer: replied 8 months ago.
I noticed that after I sent it. I meant If In 3 to 5 years say when we plan to sell by agreement for say 800k....

You incur no tax liability and the mortgage payments made on his behalf could be recovered from the capital sum without penalty.

bigduckontax and other Tax Specialists are ready to help you
Customer: replied 8 months ago.
Thank you

Delighted to have been of assistance.

Thank you for your support.