waltons

pininpower

My mother is gifting me a sum of money to part purchase a house for me and my family and my mother to live in.We are struggling to get a mortgage on the rest of the ammount 45%. Mainly because my mother is going to live with us.
Someone PLEASE help me

maninthestreet

pininpower wrote: »

My mother is gifting me a sum of money to part purchase a house for me and my family and my mother to live in.We are struggling to get a mortgage on the rest of the ammount 45%. Mainly because my mother is going to live with us.
Someone PLEASE help me

So who will live in the house, and whose names will appear on the deeds? What is the total gross income of those appplying for the mortgage, and what amount will the mortgage be??

pininpower

Me and my partner my two children and my mother. Me and my partner will be on the deeds.We have no debts and own our current house which will be rented out after moving.Our combined income is 30k we require mortgage of 117k with deposit of 145k.

kingstreet

Can you explain why you think your mother living with you will be a problem?

Who has told you this?

Senior_Paper_Monitor

It may be more sensible, for several reasons (although slightly m ore expensive), to remortgage the current unencumbered property to further increase in the deposit on the new one (or possibly make a mortgage on the second one unecessary).

The issue is the combination of your mother gifting the deposit and living in the property (1. potential for mother to make claim in future of entitlement to live there, thereby possibility of making it difficult for lender to repossess in the event of needing to do so 2. large 'gifts' can lead to future claims of 'deprivation' in the event of your mother needing care).

Neither item should be an absolute stopper provided your mother is in good health and 'no evident prospect or forseeable need' of such care - but would limit the number of lenders willing to consider the loan (even at the low LTV you are indicating).

A broker/IFA should be able to address both issues correctly for you.

pininpower

Hi My own property has a addit on the mining report so remorgage would not be possible. My mother is in good health,I wish to care for her in the future when and if the need arises. She is willing to sign a third party waiver.I have been down to various lenders HSBC waited 2 weeks for an answer, Santander refused, ING refused, Nationwide refused.The situation seems rediculous so long as the lender gets first bite of the cherry if reposessed I cant see the problem. Why is there not something set up to help people who want to do this I believe everyone where possible has a duty to look after their flesh and blood.She is widdowed and this would improve her quality of life no end.

Senior_Paper_Monitor

pininpower wrote: »

Why is there not something set up to help people who want to do this

...... "A broker/IFA should be able to address both issues correctly for you."

Touting it 'over the counter' to the mainstream ('cherry picking') volume lenders is unlikely to be successful.

Senior_Paper_Monitor

This is the 2 minutes consideration / lack of full background solution .....

Sell your current house to your mother (consider a protective trust to guard against future care costs) for £145000 (assuming value something in line with that - selling vastly over/under value may raise some other considerations, but still doable).

Income to her (from rental) may be more tax efficient anyway.

Buy your new house with your recently released equity as the deposit - standard waiver for adult living in house (who will be truly independent as a result of the above).

Ensure wills are written correctly to reflect above position.

This is the sort of solution (not necessarily the correct one - as I have limited information about your overall circumstances) that a broker/IFA would use to have got you the best option mortgage - possibly from the cheap 'cherry pickers' you mention above.



I should perhaps add a further note - properly presented to a standard lender your original plan may still be successful (we put one very similar, except both parents, successfully to Coventry about 8 months ago - briefed the lender fully via a good BDM in advance of application and flew through / have just remortgaged them, with no difficulty, with another lender to build a large extension). The secret with these is usually for a broker to use access to a BDM to investigate and 'pre-approve' with lender(s) rather than randomly apply to cheapest provider through standard/direct channels.

pininpower

I am director of a limited company and have a 20% share currently averaging 36% g/p,My partner works part time and mother is retired on average pension.
I would think the house is probably worth just a bit more than half of the 145.Could we sell the house to her for 100k and have a 45k gift?

pininpower

Sorry for my ingorance but whats BDM?

Senior_Paper_Monitor

Business Development Manager - most brokers will have an individual BDM they can relate to at most lenders. Any problems, issues or tricky cases we can attack them - if the case has potentiall difficult issues a good broker will discuss it with the individual BDMs to decide where it is best placed.

I see you have just added another complexity to the case (you are effectively self employed) - hence my earlier caveat "(not necessarily the correct one - as I have limited information about your overall circumstances)" - therefore my opinion is clearly now .... find yourself a broker.

This case has too many potential trip wires to take 'forum advice' - it could fall over, for avoidable reasons, with many lenders - and I don't think anyone on here has sufficient time/desire to evaluate all the issues in the depth necessary to give the full answers (even if you were willing to publish them on a public forum).

I think your case is prefectly do-able (your previous applications will not help) but it needs professional advice.