We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Helping mum to buy a better house - confused!
ixwood
Posts: 2,550 Forumite
Why would your elerdy mum want a presumeably bigger place? With the extra costs and maintanence at the time in her life when she needs least spacex?
Seems like madness to me. Especially now, with interest rates on the up.
Seems like madness to me. Especially now, with interest rates on the up.
0
Comments
-
The ownership needs to reflect the mortgage. So if you and your sister are taking out the mortgage your name needs to be on the deeds (with your Mum's as well if required).
If you and your sister own the house then your Mum has effectively gifted you the deposit by selling her own home and using that money. Tax minefield, if she didn't live 7 years that deposit would still be part of her estate, maybe even longer as she is living rent free and enjoying the benefit of the money.
Best way may be to put the new house in 3 names and have a legal document drawn up specifying the shares that each hold. You could have a CGT liaibility for the increase in your share between purchase and sale but you would get certain reliefs depending on the length of ownership.
The home would be at risk if you didn't meet the payments - leaving your Mum homeless. Don't know what would happen if your Mum needed care as she may not be expected to sell a part share in a home.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
I agree with Ixwood. But, if you must go ahead, then i suggeste that you go see a solicitor - most offer the first half hour free - buying a house in this complex fashion could cost you thousands further down the line if you get it wrong now.0
-
Thanks for your advice Silvercar!
Do you have an opinion on whether it would be possible/a good idea for my sister and I to be guarantors on a mortgage in mum's name, so she remains sole owner of the house? In effect we would still be paying the mortage, through her.
If it is possible, it seems that this would solve the CGT issue, but would it create other problems that outweigh that?0 -
Thanks Ixwood.
I see why it might sound strange...but it isn't for a bigger house, it's to move her to a nicer area, near to my sister.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.5K Banking & Borrowing
- 254.4K Reduce Debt & Boost Income
- 455.4K Spending & Discounts
- 247.4K Work, Benefits & Business
- 604.2K Mortgages, Homes & Bills
- 178.5K Life & Family
- 261.7K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards