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Gum drops

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RE: ask away
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you cant buy and sell a property within the 6 month rule. How does the vendors solicitor pay back the deposit you have raised as obviously the seller never receives this or you would never see it again.

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Ajay


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you borrow deposit of the purchase price and then then the vendor settles the loan you took out. therefore no cashback

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Anonymous

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so a legal agreement that vendor must pay loan before sale?

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Ajay


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yes, vendor agrees to pay a finders fee which equals the amount you borrowed as a deposit.  The vendor settles your debt.

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Dan


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The seller never receives the difference i.e your original deposit. eg 100k is the value, the net purchase is 70k.

You are buying for '100k'. 75% LTV =75K. Deposit £25k lent from bridger.

25k + 75k goes to solcitor.

You have an irrevocable agreement before that you get seller to sign that he only will get 70k.

The sol will pass the 70k to the seller.

30k will get returned to the bridger.

He will take his 25k.

5k cash back. Bridger will take his fees from this and pass the net back to you.

You can dress this up as finders fee/loan agreement etc but you are defrading the HMRC and this is mortgage fraud as you are not declaring to the lender the net price you are paying ie 70k

The cashback is a result of this.

On the mortgage application you are saying you are paying '100k' which is a total lie. Stay away from NMD.

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Anonymous

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Dan wrote:

The seller never receives the difference i.e your original deposit. eg 100k is the value, the net purchase is 70k.

You are buying for '100k'. 75% LTV =75K. Deposit £25k lent from bridger.

25k + 75k goes to solcitor.

You have an irrevocable agreement before that you get seller to sign that he only will get 70k.

The sol will pass the 70k to the seller.

30k will get returned to the bridger.

He will take his 25k.

5k cash back. Bridger will take his fees from this and pass the net back to you.

You can dress this up as finders fee/loan agreement etc but you are defrading the HMRC and this is mortgage fraud as you are not declaring to the lender the net price you are paying ie 70k

The cashback is a result of this.

On the mortgage application you are saying you are paying '100k' which is a total lie. Stay away from NMD.


Silly boy you are confusing morality with legality. It all depends how you structure the deal. Law is load of bull**** that is all about how you phrase it. If your legal structure is water tight forget HMRC even God cant win against you in a court of law.  

 



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dan33


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"Silly boy you are confusing morality with legality. It all depends how you structure the deal. Law is load of bull**** that is all about how you phrase it. If your legal structure is water tight forget HMRC even God cant win against you in a court of law."

I guess you really are as stupid as your pathetic comment.

There is NO legal way to do NMD, as they are all structured on NOT DISCLOSING THE PURCHASE PRICE.

HELLO? DO YOU UNDERSTAND? DO YOU NEED ME TO WRITE IT SLOWWLLYYYY?!

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Anonymous

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It would appear that many including Ahuja, say there are ways on the right side of the law to structure NMD deals. Admittedly I too am dubious. I would like to see it from start to finish with fully detailed, genuine and verifiable paperwork from all parties concerned.



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Ajay


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Look, the key thing is you have to answer all the questions the lender asks. if you do not lie then there is no fraud.

regarding net price - what is net price?  Take standard sale where the price is £75k.  The vendor usually has to pay an estate agent fee.  say £2k.  The vendor gets back £73k.  Now is the sales price on the LandReg:

£75k
or £73k

We all know it is £75k.  So has a fraud been committed as in reality the price the vendor accepted was £73k as this is the only price a vendor is interested - the net proceeds.  So I ask you:

What if the estate agent fee is £10k? or even £20k? what should the Landreg selling price be?

Should you deduct fees such as solicitors fees etc. to get to the net price?

As you start trying to answer all these questions you get in to a legal tangle and hence you rely on your solicitor to act properly and legally.

Remember - only the poor think NMD cannot be done.

Ajay

-- Edited by Ajay on Friday 26th of November 2010 01:31:09 PM

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