Suggestions for way to go.

kremmen

I hope someone in MSE land can help with possible alternatives.

I plan on retiring in October at the youthful age of 55.

Originally I was planning to wait 'till 60 and then sell my house and use the difference between the selling price and my mortgage to buy a narrow boat as my kids would have fled the nest by then.
Because of me bringing the date forward one of the kids will still be at school and this is not possible.

My oldest daughter has indicated that she would like to get her foot on the property ladder and would like to take over the mortgage ( or re mortgage) half the value of the property ( about all she could afford). I would then own half and she would own the other half. however I am advised that this is not possible.

So I will probably wait 'till my youngest leaves the nest and sell up but this isn't great for me and doesn't help her gain a toe hold on the ladder.

I wonder if anyone has any suggestions for a way to help us both achieve our goals?

The figures at the moment are

House value approx £180K
Mortgage.................£81K

I would be glad of any advice ( even if it turns out to be "No can do" ).

Paul

Ps If you need any further figures then let me know.

luckyfool

I don't see the problem. You do a remortgage/transfer of equity into joint names for a £90k mortgage. The mortgage would need to be in joint names though and it would mean you only releasing around £9k from the property. You would still be jointly liable for the mortgage and your solicitor could draw up the paperwork to protect your share/equity once the mortgage is repaid.

The problem would be in if you wanted to own 50% of the property, but not be on the mortgage. That would be unacceptable to mortgage lenders.

kremmen

Thanks,

The problem would be the need to release a larger equity.

Paul

luckyfool

If your daughter can only afford to pay a mortgage for 50% of the property value then you would effectively need to borrow more for your own purposes and be paying the interest on that element. Again that should be possible depending on your pension situation and how much you were willing to pay for your share of the mortgage. Otherwise your daughter is going to need to look at properties worth about half of the value.