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  • FIRST POST
    • curtis150484
    • By curtis150484 17th Jun 17, 10:18 AM
    • 1Posts
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    curtis150484
    Mortgage on inherited property
    • #1
    • 17th Jun 17, 10:18 AM
    Mortgage on inherited property 17th Jun 17 at 10:18 AM
    My mum has signed over her house to me that is mortgage free. I am married and work full time but we are renting. My mum has signed the house to me to make it easier for me and my wife to get on the property ladder. Are we able to release money in the house so that we can buy our own house? How easy is this?
Page 1
    • ViolaLass
    • By ViolaLass 17th Jun 17, 10:29 AM
    • 5,075 Posts
    • 7,045 Thanks
    ViolaLass
    • #2
    • 17th Jun 17, 10:29 AM
    • #2
    • 17th Jun 17, 10:29 AM
    You could sell it or get a mortgage.
    • Thrugelmir
    • By Thrugelmir 17th Jun 17, 10:30 AM
    • 55,870 Posts
    • 49,241 Thanks
    Thrugelmir
    • #3
    • 17th Jun 17, 10:30 AM
    • #3
    • 17th Jun 17, 10:30 AM
    Is your mother still living in the property?
    "Wide diversification is only required when investors do not understand what they are doing." - Warren Buffett
    • alex_163163
    • By alex_163163 17th Jun 17, 10:33 AM
    • 205 Posts
    • 133 Thanks
    alex_163163
    • #4
    • 17th Jun 17, 10:33 AM
    • #4
    • 17th Jun 17, 10:33 AM
    Afraid I don't know enough to answer your primary question, but are you aware that now you own a house (your mums) you will be liable for the higher rate of stamp duty on the 2nd house you will purchase with your wife? (That is assuming that you don't intend to sell your mums house first?)
    • amnblog
    • By amnblog 17th Jun 17, 12:12 PM
    • 10,023 Posts
    • 3,902 Thanks
    amnblog
    • #5
    • 17th Jun 17, 12:12 PM
    • #5
    • 17th Jun 17, 12:12 PM
    There are a number of key issues here that will dictate your options.

    Primarily

    When did you become the owner
    Who lives there now
    Who will live there when you buy the second property
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • kingstreet
    • By kingstreet 17th Jun 17, 5:41 PM
    • 32,214 Posts
    • 17,252 Thanks
    kingstreet
    • #6
    • 17th Jun 17, 5:41 PM
    • #6
    • 17th Jun 17, 5:41 PM
    Did you get professional mortgage or legal advice before you embarked on this scheme?
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • Keep pedalling
    • By Keep pedalling 17th Jun 17, 7:07 PM
    • 3,939 Posts
    • 4,292 Thanks
    Keep pedalling
    • #7
    • 17th Jun 17, 7:07 PM
    • #7
    • 17th Jun 17, 7:07 PM
    Oh! dear, yet another foolish parent giving their home away. All this has done is complicate life for both you and her.

    I doubt whether you would be able to raise a mortgage on her house under these circumstances, but even if you could if you defaulted she could find her self homeless. She could also find herself in the same situation if you pre deceased her or got involved in an expensive divorce.
    • Blackbeard of Perranporth
    • By Blackbeard of Perranporth 18th Jun 17, 2:06 PM
    • 4,648 Posts
    • 28,058 Thanks
    Blackbeard of Perranporth
    • #8
    • 18th Jun 17, 2:06 PM
    • #8
    • 18th Jun 17, 2:06 PM
    Did you get professional mortgage or legal advice before you embarked on this scheme?
    Originally posted by kingstreet
    What do you think!
    I soled my last sock
    For a whiff of your cheap perfume filled with hope of tears gone by
    • ViolaLass
    • By ViolaLass 18th Jun 17, 2:29 PM
    • 5,075 Posts
    • 7,045 Thanks
    ViolaLass
    • #9
    • 18th Jun 17, 2:29 PM
    • #9
    • 18th Jun 17, 2:29 PM
    Troll? No sign of them again.
    • AnotherJoe
    • By AnotherJoe 18th Jun 17, 9:52 PM
    • 7,591 Posts
    • 8,190 Thanks
    AnotherJoe
    My mum has signed over her house to me that is mortgage free. I am married and work full time but we are renting. My mum has signed the house to me to make it easier for me and my wife to get on the property ladder.
    Originally posted by curtis150484
    Surely you are now on the property ladder, so what do you mean by making it easier to get on it??

    Are we able to release money in the house so that we can buy our own house? How easy is this?
    Originally posted by curtis150484
    It might have been a good idea to find that out first ? I think it will be more difficult. Unless I suppose you sell since now it's yours and use the money to buy a property, tough luck mum (unless this house was a gift and she lives elsewhere in another one she owns, or she's moved into rental ?)
    Last edited by AnotherJoe; 19-06-2017 at 8:34 AM.
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