We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Sticky Situation
Big_Mac_3
Posts: 39 Forumite
Hi everyone,
This is a fairly complicated situation so please bear with me.
My parents split up around 2 years ago and needed to sell their house to pay off existing mortgage/debts. At the time my partner and I needed a house and wanted to get on the property ladder but unfortunately due to low wages and a poor credit history I was unable to get a mortgage. To help us out my parents remortgaged the house to cover the amount they needed (£72k) and now we live in the house and pay the mortgage. Although it is in my parents names, as far as they're concerned it is our house. It works great for everyone.
The thing I want to know is what happens when the mortgage is paid up. We are paying extra to it each month and hope to have it paid off a lot earlier. Can my parents 'give' me the house? i.e. just sign it over to myself and my partner or are there other tax implications surrounding this?
Sorry if this is the wrong part of the forum to post this.
Thanks in advance.
This is a fairly complicated situation so please bear with me.
My parents split up around 2 years ago and needed to sell their house to pay off existing mortgage/debts. At the time my partner and I needed a house and wanted to get on the property ladder but unfortunately due to low wages and a poor credit history I was unable to get a mortgage. To help us out my parents remortgaged the house to cover the amount they needed (£72k) and now we live in the house and pay the mortgage. Although it is in my parents names, as far as they're concerned it is our house. It works great for everyone.
The thing I want to know is what happens when the mortgage is paid up. We are paying extra to it each month and hope to have it paid off a lot earlier. Can my parents 'give' me the house? i.e. just sign it over to myself and my partner or are there other tax implications surrounding this?
Sorry if this is the wrong part of the forum to post this.
Thanks in advance.
On The Debt-Free Road, Penny By Penny!
£20,000 in 36 Months = £0/£20k
0
Comments
-
depends what the house is worth... basically, its quite technical, but as long as when they gift the house, they don't die within 6 years, then there shouldnt be a problem. but would expect it to fall outside the IHT threshold.
I used to be quite hot on this but I have let it slip over the years.
There are exemptions like 5k to kids but, this would be considerably more anyway.Plan
1) Get most competitive Lifetime Mortgage (Done)
2) Make healthy savings, spend wisely (Doing)
3) Ensure healthy pension fund - (Doing)
4) Ensure house is nice, suitable, safe, and located - (Done)
5) Keep everyone happy, healthy and entertained (Done, Doing, Going to do)0 -
as it was main home once i would have thought it would be exempt from CGT tooPlan
1) Get most competitive Lifetime Mortgage (Done)
2) Make healthy savings, spend wisely (Doing)
3) Ensure healthy pension fund - (Doing)
4) Ensure house is nice, suitable, safe, and located - (Done)
5) Keep everyone happy, healthy and entertained (Done, Doing, Going to do)0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 353.9K Banking & Borrowing
- 254.3K Reduce Debt & Boost Income
- 455.2K Spending & Discounts
- 246.9K Work, Benefits & Business
- 603.5K Mortgages, Homes & Bills
- 178.3K Life & Family
- 261K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards