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Advice Needed - Buying off Mother in Law
ose
Posts: 4 Newbie
Two years ago the opportunity came up to buy the house we rented from our Landlord... As I am self employed, I didnt have sufficient income in my books to get a mortgage, but i didnt want to miss the opportunity to get the house at a great price...170k
To solve the problem my mother in law purchased the house on a buy to let mortgage (135k). For the deposit, I used my money (10k) for part of it, and the rest came from a remortgage (25k) on her property... Very Kind of her I know.....!
Still, every penny has been paid by me, all fees, all mortgage payments and also her remortgage payments.....
The plan was that as my business grew I would have more books and profit to look at, and move towards getting a mortgage of my own with my wife (her daughter)... Business is going great, earning good money, but that is not always reflected in my net profit as I always try to reinvest in the business....
What is the best way forward to try and get the house in my name.... She wants me to do this as soon as I can - shes a bit of a panicker and stresses over things like this....
Now is it best for me to try and join her mortgage and eventually remove her? is this possible? This would mean that the loaned amount (135k) on the buy to let is at a higher rate than a regular mortgage - so not ever so keen on this....
Or could I try to secure a mortgage for the 135k and her simply sell the house to me at this price? i would obviously just continue to pay her remortgage loan, until I could pay it off at a later date....
Is she allowed to sell the property to me at whatever price she likes? and how does a mortgage company view this?
Would I need a deposit like any other mortgage, or would they see that there is lots of equity in the house (the neighbours just sold for 215k - and ours is much better)
My annual earnings on paper are approx 25k - yet my drawings are more like 40k - its just that I am always buying new machinery and vehicles for my business....
It is a complex situation, and therefore any relevant advice or views would be appreciated....
Many Thanks
To solve the problem my mother in law purchased the house on a buy to let mortgage (135k). For the deposit, I used my money (10k) for part of it, and the rest came from a remortgage (25k) on her property... Very Kind of her I know.....!
Still, every penny has been paid by me, all fees, all mortgage payments and also her remortgage payments.....
The plan was that as my business grew I would have more books and profit to look at, and move towards getting a mortgage of my own with my wife (her daughter)... Business is going great, earning good money, but that is not always reflected in my net profit as I always try to reinvest in the business....
What is the best way forward to try and get the house in my name.... She wants me to do this as soon as I can - shes a bit of a panicker and stresses over things like this....
Now is it best for me to try and join her mortgage and eventually remove her? is this possible? This would mean that the loaned amount (135k) on the buy to let is at a higher rate than a regular mortgage - so not ever so keen on this....
Or could I try to secure a mortgage for the 135k and her simply sell the house to me at this price? i would obviously just continue to pay her remortgage loan, until I could pay it off at a later date....
Is she allowed to sell the property to me at whatever price she likes? and how does a mortgage company view this?
Would I need a deposit like any other mortgage, or would they see that there is lots of equity in the house (the neighbours just sold for 215k - and ours is much better)
My annual earnings on paper are approx 25k - yet my drawings are more like 40k - its just that I am always buying new machinery and vehicles for my business....
It is a complex situation, and therefore any relevant advice or views would be appreciated....
Many Thanks
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