Buying a buy-to-let from parents

jsinc

Hi all,

My first post so pls excuse any overlap with previous discussions, but I believe my case is a little different to anything I have found already.

At the moment my parents own a property they rent out - with a large portion of the mortgage still to re-pay. Due to the shocking prices of houses these days, I am not in a posiition to be able to buy my own property, but may be able to 'take-over' the mortgage on this buy-to-let while continuing to save more for my own aspirations.

I am hoping to be able to take out a buy-to let mortgage on my own behalf and buy the property at a 'discount' (i.e. the remainder of the mortgage) from parents, then rent it out myself (and when we finally come to sell it any profit would be split between my portion of ownership (mortgage) and their monies already invested (mortgage already paid and any capital gains between the time of their purchase price and mine). Hope I haven't lost anyone yet...?

Basically my questions are:

1) Is there any way to effect a simple transfer of title within a family to avoid making this process overly compliacted?
2) Is there any way of avoiding stamp-duty and/or capital gains tax (by either of us - now or further down the line?
3) If anyone has experience of this or a simlar situation, I would really appreciate any views/opinions before I speak to a solicitor.

Thanks

jsinc

Hi, Guessing nobody has been in a similar situation...? I have read through a lot of other posts and seems that there aren't really any means to avoid the taxman - so officially buying/selling (i.e both parties within family shelling out those associated costs) may be the only way forward.

Has anyone ever mooted the idea of joint ownership? Are any lenders keen to "split the deeds" so I could take out a mortgage for the portion I can afford at the best rate I can find, but thus avoiding any early repayment penalties/complications on my parents mortgage with their lender?

Or any alternative advice/ideas greatly appreciated.

Thanks again

Gem_

I am not sure what to suggest really, apart from getting your parents to remorgage and adding you to the mortgage with them - rather than selling and buying it back. The associated solicitors costs 'should' be less than the combined sale and purchase and it does avoid any need to pay capital gains etc. You could specify in this new set up how the equity should be spilt etc ...

HTH

Gem