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Remortgaging

Hello completely new to all of this but wanted so advice

My parents are going to transfer their house to me as i have quite a lot of debt thay have told me to remortgage to pay off debts etc. There is no current mortgage on the property does anyone have any advice ie can i actually do this or is it breaking the law. Or is there time limits before I can do this?? My parents are only 59 and 60

Thanks very much
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Comments

  • StevieJ
    StevieJ Posts: 20,174 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    MOLLSBELLS wrote: »
    Hello completely new to all of this but wanted so advice

    My parents are going to transfer their house to me as i have quite a lot of debt thay have told me to remortgage to pay off debts etc. There is no current mortgage on the property does anyone have any advice ie can i actually do this or is it breaking the law. Or is there time limits before I can do this?? My parents are only 59 and 60

    Thanks very much
    Worth reading this.

    http://www.hmrc.gov.uk/inheritancetax/pass-money-property/pass-home-to-children.htm
    'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher
  • Can I Then Remortgage That Property Or Not Still Not Sure Thanks For Your Help Though
  • Really2
    Really2 Posts: 12,397 Forumite
    10,000 Posts Combo Breaker
    MOLLSBELLS wrote: »
    Can I Then Remortgage That Property Or Not Still Not Sure Thanks For Your Help Though

    As long as you can get a mortgage you would be able to re-mortgage it.

    You would be best going to see a financial adviser.
  • ILW
    ILW Posts: 18,333 Forumite
    MOLLSBELLS wrote: »
    Can I Then Remortgage That Property Or Not Still Not Sure Thanks For Your Help Though

    What is your income? What is the value of the house?
  • geoffky
    geoffky Posts: 6,835 Forumite
    mollsbells ..can you not try to pay off this debt instead of maybe putting your parents financial well being at risk....you need these good peoples advice

    http://forums.moneysavingexpert.com/forumdisplay.html?f=76
    It is nice to see the value of your house going up'' Why ?
    Unless you are planning to sell up and not live anywhere, I can;t see the advantage.
    If you are planning to upsize the new house will cost more.
    If you are planning to downsize your new house will cost more than it should
    If you are trying to buy your first house its almost impossible.
  • StevieJ
    StevieJ Posts: 20,174 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    MOLLSBELLS wrote: »
    Can I Then Remortgage That Property Or Not Still Not Sure Thanks For Your Help Though

    If they pass it to you and it is valued at below IHT threshhold then:
    They need to move out. or
    Pay you a market rent, otherwise
    The property will be subject to IHT.
    If the property is over the IHT threshhold your parents would need to survive seven years for no tax to be due.

    Once it is transferred, I cannot see why you would not be able to remortgage.

    This does constitute advice, you should speak to a solicitor about this.
    'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher
  • rl290
    rl290 Posts: 316 Forumite
    Part of the Furniture Combo Breaker
    If you want to do all this just to pay off debts (and the fact that the property is moving to your name is neither here nor there), then surely your parents could increase the mortgage in placeand gift you the money. (Usual IHT issues apply). This would save all sorts of complications and costs that may occur (solicitor fees, remortgage costs, etc)

    R
  • My parents have no mortgage on their property nor could they get one as thye are only in receipt of a small pension.

    They would be below the IHT threhold so if the property was transferred to me and they were to stay there would they then have to pay me a market rent is that right?? totally confused now...
  • Does anyone know as well if I am allowed a 2nd mortgage
  • StevieJ
    StevieJ Posts: 20,174 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    MOLLSBELLS wrote: »
    My parents have no mortgage on their property nor could they get one as thye are only in receipt of a small pension.

    They would be below the IHT threhold so if the property was transferred to me and they were to stay there would they then have to pay me a market rent is that right?? totally confused now...
    What is confusing about this?

    Gifts that you continue to benefit from. If you give your home to your children with conditions attached to it, or if you continue to benefit from the home yourself, this is known as a ‘gift with reservation of benefit’ and the gift won't be exempt from Inheritance Tax, even if you live for seven years afterwards.
    'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher
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