Do I sell Or Rent The House Decisions :(

vickystokes

Hi Everyone,

I need some advice if anyone has been in the same position as me

Basically we currently live in my moms home, Deeds are still in her name as she hasn't signed the house over to us, as we declared bankruptcy in 2009 me and my husband, so she didn't want to put in our name just in case we have the house taken from us!

Basically we have three children in a three bedroom house, My moms house is lovely but its getting to crowded and we need something bigger, We cannot extended in the loft as the boards/ planks cannot hold the weight so all we have is a shed to put all our junk in and its becoming too much, we cannot move in our shed

There is no mortgage on the house at all as its all paid off, the only thing that's left to pay is a loan which has about £5,000 Left on it and that will be paid off in 2015. Its all brand new, new kitchen, floors, bathrooms, re wired, plastered etc etc!

Mom is more than happier for us to move, but she said if she sells she would want £60k from it and the rest we could have a deposit for the new house or rent for £600PCM - She has £300 and the other £300 we would have for our mortgage, my mom is retired and is 61 and my dad is 66, so a mortgage for them is out of the question, but what about us?

I don't really know how things work, can anyone help?

Guest101

vickystokes wrote: »

Hi Everyone,

I need some advice if anyone has been in the same position as me

Basically we currently live in my moms home, Deeds are still in her name as she hasn't signed the house over to us, as we declared bankruptcy in 2009 me and my husband, so she didn't want to put in our name just in case we have the house taken from us!

Basically we have three children in a three bedroom house, My moms house is lovely but its getting to crowded and we need something bigger, We cannot extended in the loft as the boards/ planks cannot hold the weight so all we have is a shed to put all our junk in and its becoming too much, we cannot move in our shed

There is no mortgage on the house at all as its all paid off, the only thing that's left to pay is a loan which has about £5,000 Left on it and that will be paid off in 2015. Its all brand new, new kitchen, floors, bathrooms, re wired, plastered etc etc!

Mom is more than happier for us to move, but she said if she sells she would want £60k from it and the rest we could have a deposit for the new house or rent for £600PCM - She has £300 and the other £300 we would have for our mortgage, my mom is retired and is 61 and my dad is 66, so a mortgage for them is out of the question, but what about us?

I don't really know how things work, can anyone help?

A few points - Your parent own the house and for tax reasons they get the money from the rent, they can only gift you so much - which otherwise you would be taxed on.

The mortgage company will not accept this income as security either.

If you sell, the same may apply for tax reasons - you need to ask a solicitor.

If you do rent, your parents need to know the responsibilities of being a landlord. Theres strict regulations.
Also you need toknow that people will live there and whilst you have a nice house now, in 5 years time it wont be.

I would not rent until you/they are prepared to run a business. Otherwise you'll be back here getting a blunt education about being a landlord.

RAS

I think you need to start by finding out whether any mortgage provider will accept you with the BR.

vickystokes

Yes we are aware that we would have to sit down and make a decision whether to rent the house out and would have to speak to a financial adviser about tax and renting properties out as we have no understanding about it at all.

I just wanted advice if anyone has been through something like this, can anyone point me in the right direction as regards to a provider who will help us!

Mojisola

Depending on how much money your parents have, they should be getting advice on IHT planning or deprivation of assets before giving money away.

Guest101

vickystokes wrote: »

Yes we are aware that we would have to sit down and make a decision whether to rent the house out and would have to speak to a financial adviser about tax and renting properties out as we have no understanding about it at all.

I just wanted advice if anyone has been through something like this, can anyone point me in the right direction as regards to a provider who will help us!

Your registered bankrupt - even if there was one, which i doubt, your rate would be extrotionate. Go to a broker and speak to them, but you must see yourselves that no lender will want to lend to you when you are bankrupt.

Why pay a financial advisor, im telling you now, you are not named on the property, you therefore cannot claim the rent, your parents do. Do they work? The rent is taxable, if the earn over £8k a year then they will pay 20% tax on the rent. Rent is not easy money, so if you go down that route research it, join a landlords association.

vickystokes

No my parents do not work they are retired, I understand that we would have to pay tax as its based as a business and we do need advice about this! I believe when the house was left to my mom, she had to go through probate and pay some outstanding figure on the tax!! As it was left to her! Its sounds more confusing to move, i think i might stay put as then as i'm never gonna get a mortgage, but makes me laugh as i can get catalogs on HP and also credit cards people wanna deal with me??

Its a crazy world we live in!

Guest101

vickystokes wrote: »

No my parents do not work they are retired, I understand that we would have to pay tax as its based as a business and we do need advice about this! I believe when the house was left to my mom, she had to go through probate and pay some outstanding figure on the tax!! As it was left to her! Its sounds more confusing to move, i think i might stay put as then as i'm never gonna get a mortgage, but makes me laugh as i can get catalogs on HP and also credit cards people wanna deal with me??

Its a crazy world we live in!

Not never, just whilst your bankruptcy is in place.

vickystokes

Guest101 wrote: »

Not never, just whilst your bankruptcy is in place.

I will have to wait until this is finished and the deeds are in my name before i can move, here's to the next 15 years