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Taking over lending into retirement mortgage?
geraldine79
Posts: 5 Forumite
My mum was mis sold her mortgage in the 80s and when her mortgage ended she still owed 22k. Halifax let her have a lending into retirement mortgage for the remaining amount. I currently rent with my 2 kids and earn 30k a year and she's offered me to buy her house from her for 40k so she can clear her mortgage and live abroad with her sister. Can anyone advise if this is possible? Her house is worth. 95k, would I need a first time buyer mortgage or would the Halifax let her transfer the house to me? I'm so unsure about the whole process!
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Comments
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In effect a gifted deposit?
http://www.express.co.uk/finance/personalfinance/178630/Can-our-son-buy-the-family-home-at-a-knock-down-price
Discuss with the Halifax and with your solicitors.
Your mother wishes to live abroad with her sister- you might wish to consider the implications in the event that she fell ill and wanted to return to the UK, especially if she should require residential care - there is the possibility that she would be considered to have deprived herself of assets.
With this in mind, your salary/savings should just about cover you for the full market value - would it be better to buy from your mother for much less of a gifted deposit/discount?0 -
You can buy the house from her for 40k in the same way as you buy any other house and will both need to appoint solicitors. If the house is worth double then you can get a mortgage at around 50% LTV meaning you will get a good rate.
You will need to speak to the solicitors to find out if there are any tax implications with your mum selling it to you for less than value etc as well.
On your salary you should have no issue getting a mortgage for 40k and the repayments should be pretty low.0 -
The main concern is what xylophone outlines below regarding deprivation of assets in the event she needs to fund care.
The main tax to worry about is inheritance tax. Capital gains don't apply as it's her principal residence.
Otherwise, it's not too hard.0 -
Thanks for the response guys, she is moving to southern Ireland to a family home her and her siblings bought outright years ago so that isn't an issue. I will speak with Halifax and solicitor to get all the details.0
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