Parents want to do a "House Swap".

hollydays

Are you parents doing this as a house swap because they think you might split, to stop your wife getting any share in it.

Goldiegirl

merlot123 wrote: »

You have debts in the excess of 30k, has your credit score been affected, are you paying at least the minimum payment on all the debts, otherwise how do you think you will be able to get a mortgage unless you can port your existing one?

That's the point I wanted to address.

A mortgage is secured on a property. Sometimes it is possible to 'port' an interest rate to a new mortgage, but the mortgage itself can't be transferred.

If the current house was transferred to the parents, the mortgage would need to be repaid, and a new mortgage for £170k would need to be secured on the 1m house.

This new mortgage would be subject to the lenders current underwriting criteria.

So, you have already said your credit rating is shot to pieces ...... You would face a decline due to adverse credit information.

They may decide that £170k is not currently affordable, due to the £30k unsecured debt you have racked up.


There are probably issues around confirming your income. Do you have 3 years audited accounts to confirm your income? That's what they would look for for a self employed person.

TBA, the only way a mortgage would currently be considered would be an application in your wife's sole name....and she doesn't want the house anyway.

The plan is a no go in mortgage terms, I feel

Goldiegirl

AlexLK wrote: »

Thank you for all your input. I don't think it is relevant to bring up what my mother calls my wife's family. Frankly, there is "history" between the two set of parents.

So far as affordability goes: parents wouldn't be bothered about paying moving costs and would help with upkeep of the house as ultimately they wish it to be passed to my son and to his future first child. If I could sort my (and wife's) spending out then I think it is doable, although we would have to cut back and wife would certainly not like that. Admittedly, if anything happened between my wife and I, at least until I'd "got back on my feet", my parents would end up paying the essential bills for the house . They know I don't earn very much money.

Mrs. K. frankly doesn't have the first clue as to the benefits of this swap and sees our house as "really nice". I'm not still tied to my parents and am sorting my finances out myself.

Alex, I feel like I've strayed into an episode of Downton Abbey. You are already talking about passing the house to your eldest grand child, for heavens sake.

This is not an ancestral pile we are talking about here - it's just a house.

As discussed at length on this thread and your debt free thread, this house swop is a bad idea on so many levels and for a myriad of reasons. Mrs K is not the only one who hasn't the first clue about the benefits of this proposed swop - the only people who feel there is a benefit is you and your parents. Mrs K and the membership of MSE would appear to be on same page regarding this idea.

BitterAndTwisted

If this one million pound house is so very precious to your parents why don't they want to live in it any longer?

They buy your house from you for whatever it's worth to settle the mortgage and get yourselves debt-free, then you move into their house and pay them a notional amount in rent for it. They pay all the utility bills and maintenance as it sounds like they can well afford it. Would this make it a more attractive prospect to your wife?

AlexLK

In response:

Person one: I bet you would.

Tea lover: Thank you, I'm not sure what would happen re. the mortgage. To be honest I originally presumed the companies would not care about my credit problems due to the amount of equity that would be there.

Gigglepig: I don't suppose I'd thought that far into it if I'm honest.

Hunters: Your post seems rather rude and my wife isn't a scrounger, thank you very much.

Sazzybum: Oh, don't you all.

HapPea: I haven't told my parents about my debts and they would not be impressed if they found out as they've bailed me out of debt once before.

Lostinrates: Thank you for your post. I have tried to forget about the whole thing today and concentrate on my work, admitted. Your post gives me something to think about.

SavingPennies: I'm rolling my eyes as I type. Education is not all about future earnings, thank you very much.

Hpoirot: Thank you and currently my answer to your questions are that I am unsure. However, they are rather "big" questions.

Fbaby: Parents are not really aware, no. However, I will stress I won't be making any decisions myself until my wife and I sort things out one way or another as I (nor my parents) want her family getting within 500 yards of the house, never mind anything else. Whilst my wife is not a scrounger, certain members of that family are.

hollydays: My parents are not aware of problems within my marriage.

Goldiegirl: That would need to be looked into, thank you for the advice.

BitterandTwisted: The house is precious to my parents. However, they want to find a way to (understandably) avoid future inheritance tax. I would like the house so the two are mutually agreeable whether now or in the future.

Person_one

Why do they think they shouldn't have to pay inheritance tax?

You say your wife's family are the 'scummie' scroungers, but your parents want to cheat the taxpaying public out of around £300K or more.

AlexLK

Person_One: Tax AVOIDANCE is not "cheating". Evasion is.

Person_one

AlexLK wrote: »

Person_One: Tax AVOIDANCE is not "cheating". Evasion is.

Yeah, but it is though, isn't it? Morally, if not legally.

lostinrates

How does one define scrounger?

As well as the other points you suggest are philosophical musing Alex, perhaps this bears some consideration?

Hermia

tea_lover wrote: »

By your own admission, things aren't brilliant in your marriage. You could end up married to someone else who does want (more) children. Anyway, accidents can happen!

It's also a lot of responsibility for your son. What if he'd rather not live there? Will he be guilt-tripped into giving up his own life and putting his parents ahead of his partner?

I am concerned about that too. I remember telling my parents that I did not want the heirlooms they had saved for me (all enormous things that would have cost me a fortune to store) and it was a shock to them. Whilst inheriting is lovely being told that your family wants you to live in the house and then leave it to your child would be a burden I could do without. Bearing in mind he might also feel the burden of the grandparents paying for the education. My friend works in a private school and says some of the kids feel this enormous family burden on them when everyone has gone to the same school, but it's not actually right for them. Are your parents accepting of the fact that you may need to sell the house one day or that your son won't want it or will follow his own path? If the answer is not yes proceed with caution.