Second Mortgage

VIGILANT22

You still don't get it!!!

Peter_L

Pincher wrote: »

The Inland Revenue does not expect people to be able to sell their previous home immediately, this would be unreasonable. When you move from house A to house B, you usually sell A on the same day because you can't afford two mortgages, not because of the Inland Revenue. You have up to three years to sell house A after you move out, without paying CGT. It is good practice to declare house B to be your Principal Private Residence when you move in, otherwise the Inland Revenue could carry on regarding house A as your PPR, and house B as a second home, which does raise the issue of CGT.

You acquired the new house at £170k for CGT purposes, because you submitted a valuation to the Probate Office. The inheritance process nullifies the prior CGT gains, not because it's your parent's PPR.

Thanks Pincher - much more helpful !!! I am still living in house A until I can raise finances (hence the original post) to renovate/extend House B and in which time when it is complete I will Move into house B and try and sell House A (hope this makes sense ?).

I have contacted IF today about my current mortgage on House A and it is actually 0.5% above base for the remainder of the term (i.e. 17 years) so would desperately like to keep hold of this and here's the killer - I have until 1st April (quite apt) to Port the mortgage to House B but cannot do that now as I already 'own' House B i.e. the title deeds are in my name and they no longer do remortgages ! If my name wasn't on the title deeds for House B then I could simply port it ! Any advice on this ?

I actually got the title deeds transferred through Wolstenholmes (hence the crappy advice I got) and unfortunately this is the only time where they were competent enough to do what they were paid to do (see main thread Beware Wolstenholmes for the saga) and transferred the title via the Land registry - sod's law eh ??? HELP !

VIGILANT22

Who died?
Surviving parent gifting house/deprivation of assets

herbiesjp

Bottom line is it can be done.

However a £995 broker fee is high.

Get a second opinion from a fee free broker or a broker who charges less.

Peter_L

VIGILANT22 wrote: »

Who died?
Surviving parent gifting house/deprivation of assets

Vigilant22 you're probably right - maybe I don't get it, that's why I'm asking you knowledgeable lot on here for advice - not to demonstrate how much more you know than me !

My father passed away 5 years ago leaving my 60 year old mother to live in a house way too big for herself (all children married and have their own houses) - she wants to go and live in some old folks flats to be with her friends (I will be picking up the bills). We were looking to move up to a bigger house and it made sense for mum to gift us her only house so we can sell ours, do hers up (before we sell) and be left with a smaller mortgage and a bigger house.

Hope the above makes sense ?

Charterhouse

VIGILANT22 wrote: »

You still don't get it!!!

If she lives 7 years it's fine.

OP what you need to check out is http://www.hmrc.gov.uk/inheritancetax/pass-money-property/exempt-gifts.htm#4 - the section on potentially exempt gifts, specifically.

dimbo61

Getting back to the offset mortgage !
Thats the beauty of an offset mortgage you take out the mortgage for £70k and put money into offset account.
Builder says he has completed first part of extension and wants £20k off you
You go to lender and take out £20k from offset account and so on until all work is finished( or you run out of money !)
You are only paying interest on money you are paying out each month and when you sell you old home you then put funds back into offset account to match mortgage balance and invest the rest.
If you looked at a 2/3 year fixed offset mortgage with say First Direct or YBS you would know how much the mortgage is going to cost you each month.

Peter_L

Charterhouse wrote: »

If she lives 7 years it's fine.

OP what you need to check out is http://www.hmrc.gov.uk/inheritancetax/pass-money-property/exempt-gifts.htm#4 - the section on potentially exempt gifts, specifically.

Thanks but we're forgetting something here "If your estate is worth more than the Inheritance Tax threshold - £325,000 for the 2009-10 tax year ..."

Apart from the house my mother has no savings or any other income other than state and very modest private pension ...

Peter_L

dimbo61 wrote: »

Getting back to the offset mortgage !
Thats the beauty of an offset mortgage you take out the mortgage for £70k and put money into offset account.
Builder says he has completed first part of extension and wants £20k off you
You go to lender and take out £20k from offset account and so on until all work is finished( or you run out of money !)
You are only paying interest on money you are paying out each month and when you sell you old home you then put funds back into offset account to match mortgage balance and invest the rest.
If you looked at a 2/3 year fixed offset mortgage with say First Direct or YBS you would know how much the mortgage is going to cost you each month.

Thanks dimbo61 but banks like First Direct will not loan on properties which are not habitable from day one (i.e. they will not mortgage a building project - what I want to do) I know because I have already asked !

Pincher

Peter_L wrote: »

I have contacted IF today about my current mortgage on House A and it is actually 0.5% above base for the remainder of the term (i.e. 17 years) so would desperately like to keep hold of this and here's the killer - I have until 1st April (quite apt) to Port the mortgage to House B but cannot do that now as I already 'own' House B i.e. the title deeds are in my name and they no longer do remortgages ! If my name wasn't on the title deeds for House B then I could simply port it ! Any advice on this ?

I actually got the title deeds transferred through Wolstenholmes (hence the crappy advice I got) and unfortunately this is the only time where they were competent enough to do what they were paid to do (see main thread Beware Wolstenholmes for the saga) and transferred the title via the Land registry - sod's law eh ??? HELP !

BOE+0.5%?:money: Respect.

1. The solicitor should be able to reverse the Land Registry action, signature from your mother required.

2. Port the IF mortgage, before 1st April.

3. Remortgage the £130k house, raising £70k. If you want to sell soon, don't shoot yourself in the foot again by getting a mortgage with Early Redemption Penalty.