Better to pay of first mortgage to get another one or have two?

Pauldoc666

Here's the situation:

My parents want to move house but can't afford it. I have said to sell their house and let me use that money.

Parents house should sell for about £75,000

My mortgage has about £68,000 left to pay and my house is worth about £205,000

The house my parents would like is £95,000

Should I use their money to pay off my mortgage then remortgage my house to buy the second property.

Or should I use the £75,000 as a deposit on the second property and get a second mortgage on that property.

Or should I use the £75,000 then add £20,000 to my current mortgage and buy the second house outright.

I know there will be legal fees involved as well so cutting down on these would also be helpful.

My parents are happy for me to have the money from their house sale and I've agreed they will live in the second property rent free for as long as required. I am investing in the second property as a 'pension' for my future. I will be seeking legal advice to see if all this is above board.

Any guidance is greatly received and appreciated.

GMS

Using parents money for a house they will live in but not be party to the mortgage for will cause issues as they will have an interest in the property due to their funds being the deposit.

Clearing your mortgage then attempting to remortgage so quickly could also cause issues.

Easiest way is to use a further advance on your own property and buy with the cash. That way you can set up ownership any way you choose as there is no lender to dictate who can and cant be party to the ownership.