inherited house

sunny_money_2

my son in law has just been left a house of £200k and has mortage of £35K , wants to release some capital what is best way , already has £25k savings , also does he has to pay stamp duty when taking on the mortage as it is a name change ?

Bossyboots

Can you explain that more fully please?

What property has a mortgage of £35k?

What mortgage are you suggesting will require a change of name?

Any mortgage on an inherited house has to be paid back in full as part of the estate settlement unless your SIL can raise the capital to pay it off.

missile

Normally mortgage is settled when the policy holder dies and I assume OP is referring to mortgage son in law has on his own house? Best way to raise cash may be to simply sell one of the two houses. He is not liable for stamp duty on a mortgage/remortgage, only a purchaser pays that. He will be liable for capital gains if he sells a second property, but as he has only just aquired it he is unlikely to have made much CG and thus his liability will be within his anual allowance.

heppy23

sunny_money wrote:

my son in law has just been left a house of £200k and has mortage of £35K , wants to release some capital what is best way , already has £25k savings , also does he has to pay stamp duty when taking on the mortage as it is a name change ?

Does he want to release capital or does he need to release capital?

With £25k in savings it suggests he is OK with money.

If I was him I would let the new house and use the money to maybe go part time at work. OR sell both to end up in one better house.

sunny_money_2

first house sold , needed to do up inherited house and pay off car loan , short by £10k and will live in inherited house now , mortage was transferred across as building society said to pay off a small mortage of £1k ( deedstore ) then take mortage out new would incur fees say of £700 , by doing it this way mortage is by transfer of name

missile

He ought to see a good independant mortgage advisor before rushing into re-mortgage with same provider.