Hi,
I am intending to help a sibling by loaning him money to buy a property. I am not seeking any income from the loan but would want to maintain equity in the property to at least preserve value of loan over time in the event one day I may need some return of funds, although that is unlikely.
My query is what would be the best way to set this up. Such as:– If I lend interest free but seek to be on title as tenant in common with a share in property equal to the value of the loan is this a smart thing to do given it would be his PPOR and yet my component would be subject to CGT in the event of sell in future.
– Could I provide loan and not be on title but have some overriding legal document that looks after my interest ?Advice sought on the best way to structure this or a recommendation of someone in Melbourne or East side of Melbourne that I could get professional advice.
Cheers.
Going on title will create issues – CGT if it is not your main residence, guaranteeing or going on loan documents etc.
What you could do is lend and have a written agreement drawn up which gives you a caveatable interest in the property. You could then place a caveat on the property which would prevent subsequence mortgages or sale whilst lodged. You could do this through a lawyer.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thanks Terry, appreciate you taking the time to provide the advice.Any recommendation on a suitable person to help prepare documentation ?
Cheers.
You could try http://www.Mooreslegal.com.au
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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