Strange situation... already have a house yet need to get a mortgage...

GITs

Hi all, I'm just looking for a bit of advice really

I'm in the very lucky situation that my grandad has bought a house for me outright, but this is on the condition that I pay him back a portion of the value of the property in two years time.

I'm wondering what sort of products I should be looking into... is this classified as technically a "remortgage", as I already have a property am I going to require a deposit to get a mortgage for the value I require?

all a little confusing really and I don't know where to begin...

Thanks in advance for any advice, feel free to ask for any clarifications...

catieeb06

Hi,

It sounds to me, from reading the brief synopsis that this will be a Sale at Under Value purchase. Basically that means that for example the house is worth £200,000 and your grandfather is selling it you for £100,000.

Catie x

CloudCuckooLand

Get advice on the implications - deprivation of assets rules, IHT, could see you face a bill in the future etc.

GITs

the problem is more along the lines of that I already have the house, but need to get a mortgage to pay my grandad back in the near future... so basically I'm in need of an equity release of sorts... I obviously dont want to sell the place but am rather unsure of what to do in the situation...

Thrugelmir

What's the value of the property?

What's the amount of mortgage required?

Is the property let ? If so what's the rental income.

themull1

Why didnt your grandad just pay the mortgage off the house you have?

GITs

because I never had a mortgage in the first place, he just gave me the money to buy a house on the condition that i got a largeish chunk back to him after 2 years

the value of the property is 180k
i need to return 120k to grandad

I have a lodger bringing in 300 a month...

if it makes a difference I'm full time employed on 26k a year pre-tax

I think what I'm looking for is pretty much an equity release of sorts, but being 21 thats rather hard to do...

Thrugelmir

GITs wrote: »

because I never had a mortgage in the first place, he just gave me the money to buy a house on the condition that i got a largeish chunk back to him after 2 years

the value of the property is 180k
i need to return 120k to grandad

I have a lodger bringing in 300 a month...

if it makes a difference I'm full time employed on 26k a year pre-tax

I think what I'm looking for is pretty much an equity release of sorts, but being 21 thats rather hard to do...

In summary what you are trying to achieve is unlikely. On your salary level you wouldn't be able to borrow anywhere near a £120k.

The lodgers contribution wouldn't be factored into the affordability calculation.

GITs

ok, so I probably wont be able to get 120k, but what am I actually looking at? a Mortgage? equity release? I'm kinda unsure what I should be asking for when I go to a lender... or should I just explain the situation and see what they come up with..?

GMS

Assuming the property is in your name you would be looking for a remortgage.

somethingcorporate

For impartial advice go to a broker.