Sons taking over mortgage

mavon

is it possible for our two sons (who live with us) to take over our mortgage? We are getting older (61 and 59 ) and don`t know how much longer my husband will be able to work.We have other debts (loan and credit card).Our eldest son is on long term DLA and IB,the younger one is in full time employment.They are in their 30s.Does anyone know how this would work if it were possible?

McKneff

Its not that simple really. They cant just take over the mortgage per sey.

Are they paying you housekeeping money, They should be paying your at least £200 a month board money.

Try and pay as much off your debts as possible while you can.

You cant just sign the house over to them and then when your OH
is ill then expect benefits. It just doesn't happen.
Its called deprivation of assets

Sorry

CloudCuckooLand

They cannot just take over the mortgage. You would effectively have to sell it to them, and they would have their income and credit history checked to have their own mortgage.

Do they already pay for "room and board" ? If not, or not much, upping that would be a simpler, immediate assistance.

Does either of them have plans to one day move out and set up home for themselves? That would be hampered if they already had a mortgage on your place.

A half-way house might be to have a wider joint mortgage - depends whether a lender would agree to that, between the 4 of you.

A solicitor would need to be consulted, in my opinion, to run through the best way to alter the financial arrangements, while still giving you two "security of tenure". Together with a financial advisor/mortgage broker, probably.

You need to avoid the appearance of deprivation of assets, too...its complicated.

zzzLazyDaisy

The problem is that only the house owner/s can have a mortgage.

So if you want them to take over the mortgage, you would have to sell the house to them for enough money to enable you to pay off your existing mortgage, and they would get a mortgage to enable them to buy it from you.

Whether they can in fact get a mortgage on their current joint incomes depends on the lender, although the son who is on benefits will probably struggle to be accepted at all.

The fact that this would be a sale at an under-value, and you and OH would presumably continue to live in the house rent free, may also give rise to subsequent complications (IHT/Care home fees) which you would need to seek advice on.

You also run the risk of your sons subsequently deciding to sell the house leaving you looking for alternative accommodation.

Depending on the size of the mortgage it might be possible to transfer a portion of the property for a market value and put your sons on the deeds and the mortgage, as well as you and OH, but this would not release you and your OH from liability for paying the mortgage should either of them default.