remortgage with daughter & partner or not?

riasparky

I'm looking for advice on whether to allow my daughter and her partner to come in on our mortgage. I'm 47, my husband is 50. Our outstanding mortgage is £95,000 and 18 years, and our property is currently worth around £260,000. We would need to borrow an extra £35,000 to extend, which our mortgage lender has agreed in principle. They have also said it is possible for all 4 parties to be named on the mortgage. Has anyone got any advice on the best way each pair can protect against unemployment or sickness of the other pair? What are the legal implications of doing this? Any other advice thankfully received.

riasparky

bttt anybody?

Robert_Sterling_3

Tell us more about this unusual proposal.
Translate bttt.

cocktail

asking for trouble!

Rikki

I don't see why they would want to go on your mortgage. Personally i think they should be looking towards getting their own house to rent or mortgage.

Peelerfart

errrr ! call me cynical but you are 47 OH is 50 ,add the 18 year term to that and that adds up to some old mortgage payers . Dont know what your work is like i.e. safe/reliable/uncertain but I don't think helping inthis way is a good idea.

But thats my opinion , others may differ.

Peelerfart

bttt - Back To The Top ??????????

Cannon_Fodder

OP - What does your solicitor say?

Are you trying to arrange an unofficial 'trust', so that when whoever dies, the Inheritance Tax is somehow avoided?

Will they want to live with you for 18 years?

Or will they want to get their own place?

Having the 4-way mortgage already in place may limit their own mortgage options in the future, depending on the affordability criteria of their own application...

Minefield springs to mind.

riasparky

They are expecting a child, have tried the buying route but unable to attain deposit. Local rents 2 high on 1 wage. Our house is already quite big, enough bedrooms, extension meant to give each pair own space and bathroom. Our intention was to downsize to pay off mortgage early, but now considering this option. We've all lived together for longer than a year already so know it works. Would love them to have their own place, but seems out of reach. If they want to part company in later years, we'd have to sell and split. If it works, we'd be giving our daughter her inheritance early and - yes - maybe avoid inheritance tax? We're all concerned about the risks, some of which we don't perhaps know about, hence this plea for advice. Thanking you all in advance.

Trying_to_be_good

I don't think you need to worry too much about inheritance tax if the house is worth £260,000. But this does smack of being a kind-hearted, well-intentioned BAD idea. It's difficult enough with two people on a mortgage and deeds if things go wrong, four would be horrendous.

They need a place of their own, or to stop with you whilst saving up for a deposit. To make it a permanent arrangement is constraining for all involved (and you also need to think about the ultimate resale potential of your home which could be really difficult if significantly extended).