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Selling house but living there
lou031205
Posts: 97 Forumite
Hi
My parents are in very poor circumstances, liable to lose their home through repossession, and no prospects of a stable income to pay a mortgage.
They have about 2/3 equity, 1/3 mortgage. They don't care about the equity, they just want to stay in the house they raised us in.
My uncle has a portfolio of properties. Could they sell him the house for the mortgage value, in exchange for assured rent-free tenancy? i.e. He benefits from the investment and equity, and they are guaranteed a home without worry of income?
This sounded ideal, but then I read about POAT, etc, and CGT and got confused. All they want is to be able to save their home and avoid reposession.
Many thanks in advance.
My parents are in very poor circumstances, liable to lose their home through repossession, and no prospects of a stable income to pay a mortgage.
They have about 2/3 equity, 1/3 mortgage. They don't care about the equity, they just want to stay in the house they raised us in.
My uncle has a portfolio of properties. Could they sell him the house for the mortgage value, in exchange for assured rent-free tenancy? i.e. He benefits from the investment and equity, and they are guaranteed a home without worry of income?
This sounded ideal, but then I read about POAT, etc, and CGT and got confused. All they want is to be able to save their home and avoid reposession.
Many thanks in advance.
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Comments
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The problem is if the uncle falls on hard times and has to sell (or is repossessed himself) they your parents don't have a house or the equity.
Is equity release a possibility? how old are they? what is the hosue worth what is outstanding mortgage?0 -
Could they sell him the house for the mortgage value, in exchange for assured rent-free tenancy?
One thing I've learnt recently - you have to be paying rent of at least £250 per year in order for a tenancy to qualify legally as being assured.
Just a minor consideration - they would need to pay a notional rent or their tenancy agreement won't hold legal water.
Just one thought - is there definitely no way they would consider selling and downsizing (buying mortgage free)? Effectively they would be selling their home for 1/3 of its value, which does seem to be quite a sad outcome for them.
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How big is this mortgage they can't afford then?0
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Hi the outstanding is £100,000 - not a big sum, but they both have depression, and are unlikely to work in substantial terms again. The really sensible thing would be to buy a smaller property, but the house is in quite poor repair, they love it, and it would absolutely break them to lose it. I'm not sure they would survive it, to be honest. They are both late 50's. My uncle is very secure and frugal, and a great guy, so no worries there.0
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bump for more replies0
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