Whats my next step..?

villageboy_2

Hello everybody

This is my first post on this site..

I have a question to ask but if I tell the whole story it might be easier for you to assist!

20odd years ago my parents were offered a property from a family friend for a very good price,The only problem was they couldn't get a mortgage using there names.

So they asked a very close family friend and they were more than happy to help, So they arranged a mortgage and all was well..they have made all the payments ever since.

A year ago my parents offered me the house,As the house (used to be a doctors surgeory) hasn't been used/lived in for nearly 30years it was in need of a full refurbishment. So I started doing just that. The house is about 5 weeks away from being finished.

I now need to get myself on the mortgage, the family friend who's name its in is happy to do whatever is needed.

The value of the house is £190k and the outstanding mortgage is £34k.

I have been paying the mortgage for past two years, never missed a payment and have made all overpayments infact.

Would a Transfer of Equity be the right way to do this ?

Thankyou for reading my long post.

dimbo61

You need to speak to a solictor and I think you will have to pay stamp duty

getmore4less

let me get this straight

You parent bought a house 20 years ago and done nothing with it.

The house actualy belongs to someone else and they have a mortgage on it.

I think you need a solicitor to sort out the ownership and a tax specialist to look at the CGT liabilites

villageboy_2

Yep thats right,

Sat idle, and the house an mortgage are in a family friends name.

villageboy_2

Would it be possible for me to just buy the house for the outstanding mortgage amount ?

getmore4less

And now you have done it up while being owned by someone else?


CGT and stamp duty on the done up value are both likely to need paying.

villageboy_2

Yes, the work has all been done while in his name.

Before I started the work I took alot of pictures and took them to a mortgage broker, He informed me that its unlikely for a lender to lend on the condition of the property ie no kitchen, no bathroom, no heating etc etc..