A house as a gift....can a loan or mortgage

ReggieBlade

be obtained on it and how long would the length of time be in between?

The house is mortgage free and is my parents...has been up for sale for 2 years and not much interest.

Was looking at getting it transferred and getting a mortgage on it (say 50 per cent of its worth) at a later date...2/3 years?

Is this viable?

Cheers/

BitterAndTwisted

It's all doable once the relevant forms have been completed with the Land Registry and you are the registered owner.

Your question has elicited a number of subsequent question: one of which is why in God's name would a couple who have been unable to sell their mortgage-free house now be considering giving it away?

The usual reasons why a property won't sell are because it's not sensibly-priced, not being actively marketed properly or it's not being presented well. Or a combination of all three

Yorkie1

You also need to google 'deprivation of assets' in case this is an aspect of the proposed plan which you and your parents haven't yet considered.

If your parents need means-tested benefits or care in the future, the local authority has the power to decide that they deliberately gave away the house, and to assess their means as if they still owned it.

Also, if your parents die within 7 years there is a risk - in certain circumstances - that inheritance tax will be payable.

ReggieBlade

They're not giving it away....the plan is to get a loan/mortgage on the property and give them that.As it stands they have had no income for 2 years off it at least if i can get a mortgage/loan against it they get some money. I had my house for sale on the same road and that took 18 months to sell. Question is if all the relevant bases are touched...how long would/should it take to be elegible for a mortgage/loan?

CLAPTON

full facts are always helpful but why can't you get a mortgage on it now and buy it off your parents all above board?

kingstreet

Many lenders have a six month rule. This prevents them accepting an application for a mortgage on a property which has been owned less than six months by its current owner.

In addition, there are others who will not accept a "remortgage" application on an unencumbered property, one not currently mortgaged.

I suggest you consider purchasing the property from them instead. You can purchase it "at undervalue from a family member" using part of the value as a price reduction to use as a deposit, although you need to be aware that stamp duty will be charged on the full gross value which goes in the contract.

Worth bearing in mind they will not be able to continue to occupy it after you buy it from them.

If you set out the reasons and thinking behind what you are trying to do, we'd have a much better chance of guiding you correctly.

ReggieBlade

Because,having seperated and divorced i got behind in payments,etc. The equity release terms from most companies look a rip off so we are looking at this way. They do not live there,i am currently renting it,been there a year.

CLAPTON

there seems to be no benefits in transferring (giving ) the house to you now.

whether you can get a mortage or not depends upon what your credit files say and your income and outgoing.

casualwalks

ReggieBlade wrote: »

Because,having seperated and divorced i got behind in payments,etc. The equity release terms from most companies look a rip off so we are looking at this way. They do not live there,i am currently renting it,been there a year.

Why not continue with this arrangement? They get a rental income on the property, you get a home. Once your credit gets up to scratch, then you can buy it.

Annisele

If your parents need capital, is there any way they could raise a mortgage on the property as a buy to let? That way they'd still own the place (so no deprivation of assets issues), and it would give them a great deal more protection than just transferring it to you.

Mojisola

ReggieBlade wrote: »

They're not giving it away....the plan is to get a loan/mortgage on the property and give them that.

Legally, they would be giving it to you so, as someone mentioned before, they need to check out DOC.

If you went ahead with your plan and then something went wrong in your life - redundancy, long term health problems, divorce, early death - how would that be dealt with? Don't make the mistake of thinking that life is going to stay as it is now.