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Parent gifting house & remotgage!
Comments
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swanslegend wrote: »Equity release is a really expensive way of lending as you probably will know. So we are looking at alternative options
He wont pay a penny, as I 'well know'.
Seems to me this is not about FIL at all.0 -
Tax evasion, fraud, you know you can go to jail for that.swanslegend wrote: »Is there any mileage in transferring the current property to my name and putting the new property into my partners name, changing her address to my FIL address and claiming its her PPR?0 -
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Is it possible her father just add your OH name on deed to make it joint owner? In return, you paying a sum of money to her father every month for next 25 years (may be £350? + inflation every year)
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Good point.
Afterall the OP says in their opening post they are on comfortable salaries and were looking to pay off own mortgage faster, so they have the money spare.
From the OP - "We are both on comfortable salaries bringing home gross £65k between us. Our mortgage is for 33 years but we intend on bringing that down to 20 years"0 -
The easiest way is going to be to raise the remortgage based on your own house and give him the cash. That way there are no problems with him remaining in a property.
Another way to achieve your goal would be to pay him a monthly allowance in exchange for being left the property in his will. That way there are no CGT or IHT problems and if he needs the house to be sold for care costs it is still his to sell to fund them. Also it is safe from you having problems - divorce, bankruptcy, accident, death etc as mentioned above.
Or you could consider a mix of the two - a monthly cash sum now and lump sums when you've saved enough or your own house has increased in value enough to raise the funds on it.0 -
He wont pay a penny, as I 'well know'.
Seems to me this is not about FIL at all.
To me it doesn't make sense for him to do an equity release for £25k and after 11-13years that debt will raise to approx. £50k. That is why we are looking at alternative options.
Like I said in my original post, my partner and I are looking at it as though my FIL gets the money and we get an investment. So why let an equity release company have the equity in interest over the next few years?0 -
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Good point.
Afterall the OP says in their opening post they are on comfortable salaries and were looking to pay off own mortgage faster, so they have the money spare.
From the OP - "We are both on comfortable salaries bringing home gross £65k between us. Our mortgage is for 33 years but we intend on bringing that down to 20 years"
Yes this is something we have though about doing. We thought instead of gifting it, when we re-mortgage our property we take extra £10k out and pay monthly. This is an option we are also thinking about0 -
Mattygroves2 wrote: »The easiest way is going to be to raise the remortgage based on your own house and give him the cash. That way there are no problems with him remaining in a property.
Another way to achieve your goal would be to pay him a monthly allowance in exchange for being left the property in his will. That way there are no CGT or IHT problems and if he needs the house to be sold for care costs it is still his to sell to fund them. Also it is safe from you having problems - divorce, bankruptcy, accident, death etc as mentioned above.
Or you could consider a mix of the two - a monthly cash sum now and lump sums when you've saved enough or your own house has increased in value enough to raise the funds on it.
Thanks matt very helpful. What if we pay lump sums and monthly, then he needs the house for care fees as we wont have any title over the property. He will be required to sell the property to fund his care fees and we will be entitled to nothing? or if my OH gets put on the deeds of the property, is there exclusion that the house cannot be sold to fund his care fees as its jointly owned?0 -
Why aren't you suggesting he does a nice simple equity release loan so he can enjoy his money this way? Why do you want to be the owner and lend to him?
My thoughts exactly. Even though I believe that these schemes should only be used if there is no sensible alternative - but should most certainly be considered before any alternative that has conflicting interests. Such as OP's which contains big risks for FIL.
The focus seems to be on how to turn a profit here and not, as OP keeps saying, to ensure a better quality of life for FIL. That could easily be dealt with by family members gifting an income to FIL or an equity release scheme.
FIL needs independent legal advice. If OP's motives are altruistic then OP would be making sure FIL receives such independent advice.0 -
swanslegend wrote: »Equity release is a really expensive way of lending as you probably will know. So we are looking at alternative options
Yes, it is - but it has far less risk in it for your FIL. And it wouldn't cost him a penny.0
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