Handing Over a Mortgage... Can It Be Done?

jdw88rm

Hi there,


My parents are struggling with paying their mortgage and are looking into handing it over to me and my brother. We are going to speak to estate agents and the building society at the weekend but wanted to ask here also.
The house is worth between £300k - £350k, the outstanding amount owing on the mortgage is £173k and me and my brother (who both still currently live at home) earn a combined £41k pa.
In short, can this be done?


ANY help/advice would be greatly received. Many thanks,


Jonathan

kingstreet

No, you can't.

You can't have a mortgage on a property you don't own.

However, you may be able to join them on the mortgage and ownership using a transfer of equity.

Usual cost £450 to £600.

Mojisola

jdw88rm wrote: »

The house is worth between £300k - £350k, the outstanding amount owing on the mortgage is £173k and me and my brother (who both still currently live at home) earn a combined £41k pa.

If you and your brother are paying your way at home and your parents are still struggling, it would be worth having a complete overhaul on their finances.

There will be plenty of advice on the Debt-free Board (which is about staying out of debt as well as clearing debt) if they posted their 'statement of affairs'.

Thrugelmir

Consider suggesting to your parents they downsize to something affordable.

jdw88rm

Their intention is to sell the house to us for £173k. This will clear them of their debts and me and my brother will then have a mortgage of said amount. However neither of us have a deposit... is this still a no go or could it be taken out of the equity?
This is all completely new to us both and has come as a shock but we don't want to see our parents lose their home and us to lose the home we all grew up in.


Really appreciate the help.

Mojisola

jdw88rm wrote: »

Their intention is to sell the house to us for £173k. This will clear them of their debts and me and my brother will then have a mortgage of said amount.

If your parents are going to continue to live in the house, I think you'd struggle to get a mortgage.

amnblog

Yes JDW.

Provided you take over ownership, you should be able to do this, even if your parents stay in the property.

Thrugelmir

jdw88rm wrote: »

and us to lose the home we all grew up in.

Sentimentality shouldn't cloud your judgement.

amnblog

Thrugelmir wrote: »

Sentimentality shouldn't cloud your judgement.

Yet it will

Mojisola

jdw88rm wrote: »

Their intention is to sell the house to us for £173k.

In effect, they are giving you £350k - £173k = £177k.

Read up on deprivation of assets before you go ahead.

There are so many possible problems with your plan, have you considered all other options first?

Let_Us_See

Four adults living in the same property and still struggling to pay the mortgage? Are your parents charging you a realistic amount for board and lodging?