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2nd home - help to buy
Yates78
Posts: 23 Forumite
Hi - I currently have help to buy mortgage (equity loan) on a new build. My parents are considering signing over their house to my name in the near future.
They have no mortgage on the house or debts attached to it. Can we do this with me having an HTB mortgage?
They have no mortgage on the house or debts attached to it. Can we do this with me having an HTB mortgage?
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Comments
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You already have the property with the HTB loan.
If your parents want to gift you there home they can do BUT!!!
What happens if they need care or die within seven years?
Where are they going to live?0 -
The rules say..
'Help to Buy is designed to assist you move up the housing ladder, and must be your only residence.'
'The property purchased must be your only residence. Help to buy is not available to assist buy-to-let investors or those who will own any property other than their Help to Buy property after completing their purchase.'
Clearly the definition is there. How they expect the situation to be handled if you inherit a property after the event is open to question.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Post-sales issues dealt with by Housing Options Plus;-
http://www.myfirsthome.org.uk/content/1/122/help-to-buy.htmlI am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Hi - I currently have help to buy mortgage (equity loan) on a new build. My parents are considering signing over their house to my name in the near future.
They have no mortgage on the house or debts attached to it. Can we do this with me having an HTB mortgage?
For what reason do they wish to do this? What is the value of the property and the residual estate once the property has been removed?
If this is to attempt to minimise IHT then it needs to be considered very carefully as it is easy to get it wrong and end up with greater tax liabilities than would be the case if the transfer did not happen.0 -
If they carry on living in it after "donating" it, it falls foul of the GWR provisions, so the value never leaves the estate for IHT purposes.
OP - read about "Gifts With Reservation and "Pre-Owned Assets" as they relate to taxation and "Deprivation Of Assets" as it relates to care funding costs.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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