Taking over my parents mortgage of other house

NickH1982

Wonder if someone can help, my parents currently have 2 houses one where we all live and one which they use to rent out, and im looking to buy it soon (the one they use to rent) there is only about 8k left on the mortgage.

Would if be easier to just get them to transfer the mortgage over to me and for me to remortgage them and pay them the 30k they are willing to sell it to me for (house valued at 70k)

or

Just to take a new mortgage out on it?


Cheers

Nick

GMS

Take out a new mortgage. Even if you could be added to the current one you would then not be able to remortgage for 6 months so could not give the money back to your parents in the short term. Plenty of unneccessary legal work and costs involved in Transfer of Equity.

Make sure the lender you apply to are aware of the deposit being equity and that they are happy with a sale at undervalue.

NickH1982

GMS wrote: »

Take out a new mortgage. Even if you could be added to the current one you would then not be able to remortgage for 6 months so could not give the money back to your parents in the short term. Plenty of unneccessary legal work and costs involved in Transfer of Equity.

Make sure the lender you apply to are aware of the deposit being equity and that they are happy with a sale at undervalue.

Cheers, what would I have to do about getting a deposit I was looking at using about 6k (20% of 30k) or would this not be applicable with the house being valued at 70k and the sale value being of 30k. I'm not to sure how this all works as it will be my first house.

GMS

The deposit would be the equity your parents are giving you, subject to the lender agreeing to it.

As it is from your parents you should be ok.

A broker could save you the leg work. Other than that ring around and check with lenders prior to spending any money on valuations etc.

NickH1982

GMS wrote: »

The deposit would be the equity your parents are giving you, subject to the lender agreeing to it.

As it is from your parents you should be ok.

A broker could save you the leg work. Other than that ring around and check with lenders prior to spending any money on valuations etc.

So what ever % of 30k?

Cheers