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signing over part of your house (info needed)
lordoftheundead
Posts: 16 Forumite
hi,
i have recently been looking into trying to purchase my parents house to help both of us out. the folks are eager to start me on the property ladder by passing on my share of any possible inheritance. (very nice of them but the condition is i have to look after them so its not all win win).
the house is around 300000 and between 2 sisters and i = 100000 each.
i 1st looked into getting a vendors mortgage of 200000 (sale price is minus 100000 inheritance) so my parents could continue living there for as long as they wanted and then remortgage with a bank when they wanted to move, so they would get there 200000. please note a bank would not look at me for a mortgage to start with, but after holding over 30%equity with a good rental income im sure they would be happy.
now the problem, my parents took out 40grand a few months ago in a life or reverse mortgage from northan rock so i would have to come up with 40k to pay that off to do a vendors mortgage(as far as i know)
i first thought that a 1st mortgage with a bank of 40k may be used but have been told that a bank would touch it because i'd be renting to family, is this true? (will be charging rent so i can claim the deductions but be paying my parents more in interest so im not heartless if thats what your thinking, and they could do with the extra income)
i am now wondering if my parents could sign over a third of the house to me? and what costs would be involved?
am i right in thinking that on paper id own 100000in equity in a house with no mortgage? and therefore be classed a home owner to be able to get a secured personal loan (i know the devils loan) of 40k to pay northan rock off and purchase the remaining two thirds using a vendors mortgage?
thankyou for keeping with it, any anserws/advice would be most appreciated
regards pete
i have recently been looking into trying to purchase my parents house to help both of us out. the folks are eager to start me on the property ladder by passing on my share of any possible inheritance. (very nice of them but the condition is i have to look after them so its not all win win).
the house is around 300000 and between 2 sisters and i = 100000 each.
i 1st looked into getting a vendors mortgage of 200000 (sale price is minus 100000 inheritance) so my parents could continue living there for as long as they wanted and then remortgage with a bank when they wanted to move, so they would get there 200000. please note a bank would not look at me for a mortgage to start with, but after holding over 30%equity with a good rental income im sure they would be happy.
now the problem, my parents took out 40grand a few months ago in a life or reverse mortgage from northan rock so i would have to come up with 40k to pay that off to do a vendors mortgage(as far as i know)
i first thought that a 1st mortgage with a bank of 40k may be used but have been told that a bank would touch it because i'd be renting to family, is this true? (will be charging rent so i can claim the deductions but be paying my parents more in interest so im not heartless if thats what your thinking, and they could do with the extra income)
i am now wondering if my parents could sign over a third of the house to me? and what costs would be involved?
am i right in thinking that on paper id own 100000in equity in a house with no mortgage? and therefore be classed a home owner to be able to get a secured personal loan (i know the devils loan) of 40k to pay northan rock off and purchase the remaining two thirds using a vendors mortgage?
thankyou for keeping with it, any anserws/advice would be most appreciated
regards pete
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