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Property mortgage

24 June 2014
Issue: 4457 / Categories: Forum & Feedback , Income Tax , Inheritance Tax , Investments , Land & property , Trusts

Will mortgage interest be fully allowable if only part of the property is owned?

My client will be receiving compensation soon for an injury. He is over 18 but has been incapacitated by his injuries and his parents would like to use the compensation to purchase some buy-to-let properties for him. A mortgage will be needed.

Their intention is to purchase the properties in the joint names of the son his father and his mother but the son will own a 99% interest.

However the mortgage company is saying that the mortgage can only be in the parents’ name. Is that critical and is there any way that the son can receive tax relief for the interest against his share of the rental income?

Query 18 405– Housey

Reply from Steve Kesby

I assume that the reason that the mortgage lender is saying that the mortgage can only be in the parents’ names is because the son lacks...

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