Helping Out Parents - Need advice

stringer_bell

Hey guys,
This has been in pipeline for a bit and is a year off, but would like some advice. I'm 28 and live with my parents ( they are both late 40s, good health ) They own a house here, which I will buy off them when they move to Scotland ( which they will use money I give them to put on a house in Scotland ) I have a few questions, the best way to go about this?

1/ 8k left on mortgage here but the house is in their name.. move the house into my name ( if thats possible? ) and I pay off the mortgage then give them a large cash sum to buy the house ( circa 40k ). They have a loan secured against the house in past so not sure if its possible to just transfer the house to me for nothing?

2/ I pay off mortgage here and then I get a mortgage in Scotland for them and use the lump sum to pay down most of it, then the house will be in my name

what would you do? I'm 28 self employed, currently doing well so time to help out parents

G_M

Not sure I fully understand but

* you cannot transfer the Title of the house 'here' without paying off the mortgage. So either you, or they, will need to pay off the outstanding £8K before the Totle is transferred.

* you cannot get a mortgage on a property (in Scotland) in your name, unless the property is also in your name. Ypu would (probobly) then
a) become a landlord with all the issues around that and
b) the property would be subject to Capital Gains Tax as it would not be your primary residence

Can they not get a mortgage in their own names?

stringer_bell

G_M wrote: »

Not sure I fully understand but

* you cannot transfer the Title of the house 'here' without paying off the mortgage. So either you, or they, will need to pay off the outstanding £8K before the Totle is transferred.

* you cannot get a mortgage on a property (in Scotland) in your name, unless the property is also in your name. Ypu would (probobly) then
a) become a landlord with all the issues around that and
b) the property would be subject to Capital Gains Tax as it would not be your primary residence

Can they not get a mortgage in their own names?

I can give them the 8k to pay off the mortgage, and then they transfer house to me, I will live in this house and then be a home owner..

Yes they can get a house in Scotland, I just thought it might of been more useful if I owned it

pleasedelete

In what way are you helping them? They have just an 8k mortgage which you want to pay off And thn take their entire house?

Sounds like defrauding them them not helping them

stringer_bell

pleasedelete wrote: »

In what way are you helping them? They have just an 8k mortgage which you want to pay off And thn take their entire house?

Sounds like defrauding them them not helping them

I missed out part of the story, I apologize. The house cost 25k, It was purchased 10 years ago.. it is in a very rundown estate in Manchester but its home to me.. apparently it's worth 40-50k now. I have paid off a lot of the mortgage in bits and bobs over the years.. so me paying off the mortgage and giving them 40k towards a house in Scotland is a lot better than defrauding them I hope

JQ.

You seem to be making a very simple thing very complicated for no apparent reason.

You buy their house off them for Market Value using a mortgage in your name. They then go and buy a house in Scotland with the cash you have just given them. You own the house you live in, and they own the house they live in - everyone's happy. :beer:

stringer_bell

JQ. wrote: »

You seem to be making a very simple thing very complicated for no apparent reason.

You buy their house off them for Market Value using a mortgage in your name. They then go and buy a house in Scotland with the cash you have just given them. You own the house you live in, and they own the house they live in - everyone's happy. :beer:

Gotcha - I just wanted to make sure it is the right way to go about things, especially with the loan they had secured on the house

jackomdj

Not really any different to most house sales/purchases!