Buying Parents House

teddy3000

My sister and I are looking to buy my parents house.

It's been valued at 550k and they have 97k outstanding on their mortgage.

In theory, they'd like to take 200k out and for the mortgage to be paid, so we're looking at roughly a 350k mortgage. We've already been approved a mortgage in principle for up to 400k so that's no problem.

We're both also first time buyers.

The question is, are we able to do this and will we have to pay stamp duty? Will there be any unexpected fees?
Will the property have to be phyically 'purchased' by us or can we just change the name on the existing mortgage and add more to it?

Thanks for your help in advance.

Foxy-Stoat_3

teddy3000 wrote: »

The question is, are we able to do this and will we have to pay stamp duty? Yes, of course you will have to pay stamp duty.

Will there be any unexpected fees? Without knowing what fees have already been explained to you noone will be able to answer this.

Will the property have to be phyically 'purchased' by us or can we just change the name on the existing mortgage and add more to it? Yes it will have to be purchased, as you two are buying it....or am I missing something...assuming your parents are to vacate and you and your Sister move in.

I hope this helps .

kingstreet

£97k existing mortgage and they want £200k, so that doesn't make £350k it makes £297k.

This is a concessionary purchase and most lenders who offer this will want to see your parents move out, so I hope they aren't planning on continuing to live there?

SDLT will be based on the actual consideration, the £297k or £350k which changes hands, not the actual value.