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Advice Please

davejjt
davejjt Posts: 22 Forumite
in Mortgages & endowments
To cut a long story short we need to move out off our back to back house and into a bigger house and my wife's parents are moving in here . We have £15,000 left on the mortgage so my in laws are going to pay this off meaning they won't pay no rent. Are we better adding the £15,000 onto our new mortgage and get my in law's to pay rent?. This means we will still owe the back to back.

Would we get a better mortgage if we use the back to back as equity?.

Comments

  • GMS
    GMS Posts: 5,388 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    You can't use the property as a deposit for another purchase. You would need to raise the cash.

    Do you have a deposit in place for the new purchase without the current property being sold?
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Yorkie1
    Yorkie1 Posts: 12,285 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    I believe that if your inlaws move in and pay your mortgage for you, it would indirectly be rent and you'd therefore have all the rights and responsibilities of a LL.
  • davejjt
    davejjt Posts: 22 Forumite
    GMS wrote: »
    You can't use the property as a deposit for another purchase. You would need to raise the cash.

    Do you have a deposit in place for the new purchase without the current property being sold?

    Hoping to save £20000 in 18 months. Looking to get a house worth 90-100,00 grand.
  • davejjt
    davejjt Posts: 22 Forumite
    Yorkie1 wrote: »
    I believe that if your inlaws move in and pay your mortgage for you, it would indirectly be rent and you'd therefore have all the rights and responsibilities of a LL.

    I was thinking this. Before we move we are putting in a new boiler and getting central heating fitted.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    davejjt wrote: »
    Are we better adding the £15,000 onto our new mortgage and get my in law's to pay rent?.

    Tax will be be payable on the profit made from renting the property out.
This discussion has been closed.
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