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Need advice
newnow
Posts: 1 Newbie
We have been renting a house for 1 year and 6 months. We are friendly with the landlord. He would like to sell the house because the mortgage has become a burden for him. He has not been able to and would prefer not to evict us anyway. The ideal solution for everyone would be for us to buy the property but we are not currently in a position to get a mortgage. Today he has suggested that if we make a payment of £20,000 towards the property then pay off the remaining mortgage payments (which are less per month than our rent payments) he would give us the property. Essentially he has a mortgage he doesn't want to/can't pay, we want a mortgage on the property but can't get one so he is hoping there is a way we can help each other out. He doesn't know much about property but he isn't trying to rip us off as he suggested himself that we get legal advice and paperwork drawn up to protect our interests. Transferring the mortgage into our name would not work as we would need to meet his lenders mortgage lending criteria and if we did we would just get a mortgage. From his lenders point of view it would be like a friend giving him money for his mortgage and then him giving the friend the property, as a gift.
My question is, would this work? And how do we protect our interests? We're just trying to find a way to keep our home.
My question is, would this work? And how do we protect our interests? We're just trying to find a way to keep our home.
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Comments
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How long's left to run on the mortgage?0
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This idea is a minefield!
If you can't raise the deposit for a mortgage, how will you finance £20K?
In whose name will the property be? Lender won't agree to it being in your name if mortgage in LL's name.
How will you pay the mortgage? Direct from your bank account will arouse suspicion with the lender. You pay LL and he pays his mortgage? What if he keeps the money and stops paying?If you are querying your Council Tax band would you please state whether you are in England, Scotland or Wales0 -
This sounds superficially great, but it is a terrible idea when you dig into the implementation. Even disregarding who owns how much when you move out partway through/he is forced to sell up, the whole tax situation would be a minefield.
Frankly I'd thank him for the kind offer, but it would be too complicated to be cost-effective.0
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