Selling my home to my daughter

chewmylegoff

sexymax wrote: »

Hi everyone heres my situation. I currently have a endowment mortgage of £70,000 with no policy to match the final sum which matures Jan 2015. I`m also receiving pension credit ( which pays all the interest untill Jan 2015)
My future plan is this.
To get my 26 year old daughter( whos currently living in rented accommodation with her fiance) to buy the property for £70,000.
(current value £300,000.)To allow me to continue living there.
My thinking is that when she is ready to buy her own home this would be an asset for her. £300,000 - £70,000.= £200,000 equity?
Questions
1, Can I in fact do this?
2, Would the mortgage need to be "Buy To Let" being as she will not be living in the property?
3, how will the tax man view this?
4, Would pension credit then continue to help in any way with "my Rent"?
5, She is Self employed for about 3years but would that be such a negative considering the equity?
Thanks in advance for any advice.

Rather than giving your assets away which could cause all sorts of problems for you later as has already been pointed out, your first port of call could be to engage with your lender.

The FCA recently published guidance on what lenders should do with people in your position. It would no doubt help you to know what your lender's policy is for people in your position so you know what you are dealing with.

http://www.fca.org.uk/static/documents/finalised-guidance/fg13-07.pdf

sexymax

Thank you chewmylegoff for the fca link I read through it, although I`m not sure if there is a solution for me or not. I had written to my lender a year ago pointing out that the interest is currently being paid no matter what? My thinking that if the term was to be extended they could not loose. at my death they would get their £70k plus all the extra interest in between. At that time they declined, offering only a repayment method over a short period ( out of my reach) I wonder if the MMR due in April 2014 will make that an option.