need some serrious home help on what to do

d4gl15h

hi there firstly i am relatively new to these forums so bare with me plz

OK here is my situation, in 2011 my great aunt died and her house became available to buy and i wanted to buy it for my self as i was yet to get on the ladder.
at the time i was on a temp contract at work and all though risky doing so as a temp the amount i was paying for house was only 50k as i had a 20k deposit all ready so if i had of got laid off then it just meant i would have struggled but i have now been made permanent.
any way my parents very kindly raised capital on there mortgage free property and bought my house in full so there is no mortgage on my house just a loan against my parents house but my house is in there name if that makes sense so technically i am renting of my parents.

last month i lost my mother to a 2 year battle with cancer so now my step dad owns my house and i trust him he is an honest bloke but my mam was always worried that he might meet some one else and then something happen to him and she then get everything, but in her will she states that her half of my house is mine through beneficial interest.

as far as i am concerned i have three options-
1) i leave things the way they are and carry on paying my mortgage money to my step dad each month and trust him in 12 years to sign the house over to me.

2) he puts the house in my name and he trusts us to carry on paying for the next 12 year.

3) we get the house in our name and then apply for a loan against the house or get a small mortgage as virgin money like to call it.

now with option 1 my worries are if he was to meet some one else anything could happen and i could potentially lose half my house.

option 2 seems like the logical option but my girlfriend who i do trust and love has paid nothing to the deposit or the renovation of the house and it cost around 32k in total inc deposit, now i want her to sign a deed of trust but cant see how it would work with this option.

option 3 is now sounding like the best option as i get to have my house in my name and hers which would make her happier and also
the deed of trust can be installed and i safeguard my families hard work saving and looking after the next generation of family ( i have 2 kids) the only bad side to this is that my parents have an excellent credit history and got a good rate of interest ect and i don't think i would get the same so i wouldn't really want to up my house payments and increase the term to pay it over.

i hope that's easy for you guys to understand i am just wondering what your advice would be ?

i am thinking if i got a small mortgage then obvious it gets me on the ladder officially but through the years my payments could vary.

were as if i got the house in my name and got a homeowner loan i would have set payments for the duration of the loan which is ideal for me as i like to know what i am going to be paying each month.

so any help would be greatly appreciated and i thank you in advance.

RAS

One of the absolute basics is that you need to know whether the house is registered as a joint tenancy or tenants in common?

The other thing is whether you are in Scotland or England etc?

gfplux

Did the house cost £70,000 and you paid £20,000 and the mortgage was raised for the other £50,000.

d4gl15h

RAS wrote: »

One of the absolute basics is that you need to know whether the house is registered as a joint tenancy or tenants in common?

The other thing is whether you are in Scotland or England etc?

i am not 100% but i am sure it is tenants in common as she has stated her share in my house is mine in her will she has left me the beneficial interest.

my step dad is happy to put the house in my name its just the bit with my gf as if it goes in our name then my we still need to pay the money to my step dad and if we were to ever split up she could claim half the house and not have to pay the remaining debt.

also i am in England

d4gl15h

gfplux wrote: »

Did the house cost £70,000 and you paid £20,000 and the mortgage was raised for the other £50,000.

yes we paid £20,000 cash the borrowed £50,000

gfplux

If you paid £20000 deposit then surely the original paperwork shows you own 28.5% of the house. With the mortgage representing 71.5%.
So it is the 71.5% of the house you want to change.

GDB2222

I see no issue. Buy the house from your step dad, so it is in your name. Raise a mortgage to do that, now you have a steady job. Alternatively, regularise the position that you have actually borrowed £50k from him, and pay your mortgage interest to him, so he can pass it on to his lenders.

If you put the house in your and your girlfriend's names jointly, you are effectively making a gift of half your equity, ie £10,000. Undoubtedly, this will make her very happy, However, if you had £20k in the bank, would she insist on you giving her half? So, why is it different with the house?

When you start a family or get married is the time to put the house in joint names.

d4gl15h

gfplux wrote: »

If you paid £20000 deposit then surely the original paperwork shows you own 28.5% of the house. With the mortgage representing 71.5%.
So it is the 71.5% of the house you want to change.

no there is no mortgage on my property at all it is technically bought out right.
we bought of family so the 20k just got divided between them and the 50k loan is a remortgage on my parents house.

d4gl15h

GDB2222 wrote: »

I see no issue. Buy the house from your step dad, so it is in your name. Raise a mortgage to do that, now you have a steady job. Alternatively, regularise the position that you have actually borrowed £50k from him, and pay your mortgage interest to him, so he can pass it on to his lenders.

If you put the house in your and your girlfriend's names jointly, you are effectively making a gift of half your equity, ie £10,000. Undoubtedly, this will make her very happy, However, if you had £20k in the bank, would she insist on you giving her half? So, why is it different with the house?

When you start a family or get married is the time to put the house in joint names.

we have children we just are not married yet, i want her to sign a deed of trust for £30,000 to cover my deposit and the £10,00-£12,000 spent on the full renovation.
there is roughly £44,000 left on the mortgage right now but the house is worth at the very least £90,000.

i am willing to share the equity if we were to split as its our house we bought together, i just want my deposit and renovation money back if we are to ever split.

BitterAndTwisted

The simplest way to go about this is to buy the percentage of the property you do not already own from your step-father by raising a joint mortgage with your partner. When buying you have a solicitor draw up a Deed of Trust to protect your deposit should you decide to split up in the future. BUT this all may come to naught when you have children who need to be housed until they are independent, so you could end up single and homeless with no savings you can get your hands on until those children are adults and are no longer dependent on you and the partner.

d4gl15h

BitterAndTwisted wrote: »

The simplest way to go about this is to buy the percentage of the property you do not already own from your step-father by raising a joint mortgage with your partner. When buying you have a solicitor draw up a Deed of Trust to protect your deposit should you decide to split up in the future. BUT this all may come to naught when you have children who need to be housed until they are independent, so you could end up single and homeless with no savings you can get your hands on until those children are adults and are no longer dependent on you and the partner.

wow i didn't no that, obviously the kids come first but if it was to ever happen it would be her walking away not me as i would never leave her, but i would see her ok and make sure the kids were fine and had what they needed.

i think i have over complicated this whole thread lol
so here goes again-
would it be better to get my name put on deeds which i can do no problem so i then own the house outright and then take out a loan against the property and pay my step dad the required amount.

or

apply for a mortgage for the required amount and then pay him off that way?

if i get a homeowner loan i wont have solicitor fees ect will i ? just the cost of transferring names on deeds and also the loan would be the same amount each month for the full term would it were as a mortgage fluctuates.