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Father in laws offer
loverington
Posts: 44 Forumite
MY father in law is desperate to help us get our foot on the property ladder and is willing to help us anyway he can, his situation is this, he works full time on around £35k Per year. he owns a house that has been valued at £230,000 he only has a mortgage of £4500 left so nearly paid off. He has suggested that he would release the equity in his home to buy us a house thats around £170,000. So firstly is that possible to relase that much equity or is there another way, a buy to let for instance or a guarantor mortgage in our name secured on his property? Thanks 
Or maybe I mean remortgage instead of equity release??
Or maybe I mean remortgage instead of equity release??
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Comments
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He could remortgage his home to give you a gifted deposit for yours. Obviously it means he has a higher mortgage to pay and potentially a short time to pay it back, making it expensive.
And what about you? Incomes? Deposit? You're going to need a mortgage, so we need to know a bit about you.
Sorry. Have I misread? He wants to use all his equity to buy you a house outright?I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Thats very generous but is he going to put his own home in jeopardy to do that? How old is he for a start ? lots of questions need answering before you do anything..#6 of the SKI-ers Club :j
"All that is necessary for evil to triumph is for good men to do nothing" Edmund Burke0 -
He could release the equity and get a BTL mortgage. He rents it to you (though I always strongly advise landlords never to rent to friends/family), and you live there. Note - Capital Gains Tax implications.
He could release the equity and give it to you (either outright or as a loan). You buy a property in your name, getting a mortgage for any additional funds is required. Your mortgage lender would need to know if this was a loan as that would affect your financial status. Note - Possible Inheritance Tax implications.
You could buy the property yourselves, using him as a Guarantor (assuming your salaries allow).0 -
How old is he? And how is he going to be able to pay the higher payments if he remortgages on such a modest salary? I suspect that you probably earn in excess of what he does between the pair of you. Get saving for a deposit and buy your own property on your own rather than have an older gent compromise his retirement!0
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loverington wrote: »MY father in law is desperate to help us get our foot on the property ladder and is willing to help us anyway he can,
Could you live with him in his house?0 -
Correction; We are desperate to come up with some clever wheeze to get our hands on FIL's equity.0
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