Adding daughter to mortgage or Selling property to daughter

GSWM

I’m a 60 something year old widowed retired nurse who stopped working three years ago due medical problems. For the first two and a half years after I stopped working my daughter was making the monthly payments for the mortgage of my house and paying for my upkeep (food, utility bills etc), as well as paying her own mortgage for her flat.

I was advised to apply for housing benefit about six months ago to take the strain off my daughter as she had just gotten married (to self-employed partner), is pregnant and living on an average income (£30k). I applied and the DSS currently pay my interest only mortgage.

The house is a large 3 bed that requires a lot of maintenance that I am not physically able to do. I also feel that it would be a great starter family house for my daughter and her husband when their baby arrives instead of the poky 1 bed flat that they live in.
I currently have about £190k left to pay off on the mortgage (property is valued at £280k) and was seeking some advice on the best way to transfer the property and mortgage to my daughter in the next few months so I can go and rent a one bed flat in a retirement building.

As she doesn’t earn enough money to get a £190k mortgage and her credit rating is only fair and not excellent, would the best decision be to:

A. Transfer equity/ ownership: We’ll find a broker who will approach my mortgage lenders (Birmingham Midshire) to add her name to the mortgage in the first instance and then a few months after she returns to work from her maternity leave she can approach another mortgage lender to buy the property outright. I’m not sure how this process works or if it’s at all possible and what the Stamp duty implications might be, if there will be a revaluation etc.

B. Selling property only: As she cannot afford £280k. I wondered if I could make a non-cash gifted deposit of £90k, then she will need to find a way to get a mortgage with her husband for £190k. Only problem is that he (the husband) was made redundant in 2012 and as he hasn’t been able to find a job has been freelancing but doesn’t make much money or have adequate proof of income.

Sorry that this is a long write up, but wanted to give you a full picture of the situation. I would really appreciate any advice on this before approaching a mortgage broker, conveyancer or solicitor.

angelsmomma

If you are going to be renting a retirement flat how will you pay the rent? if you are intending to claim housing benefits you should look at how they assess notional assets. Google deprivation of assets too in case you ever need residential care.

holly_hobby

For several reasons this won't currenlty work ....

• Your receipt of Support for Mortgage Interest - which will cease when you move out, and will prevent the addition of daughter to mge
• Current lack of income from your Daughter/Hubby to support any mge even if you sell completely to them - at under value or not
• Deprivation of asset issues if you sell at under value, knowing you may later seek a long term care assistance claim
• SDLT if the consideration (pch price) exceeds 125k

Sorry .... wait until Daughter/Son In Law have sufficient income and acceptable status, and then re-think an outright sale to them.

Hope this helps

Holly