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Selling house to mum mortgage options
Options
d_cross
Posts: 11 Forumite
morning,
A bit of background to a slightly complicated situation...
- we are currently own a property (value ~£200k) in the north which we are renting out. The mortgage is on a BTL and at a high LTV (~90%). Current rental income doesn't cover mortgage and we are set elsewhere so are looking to sell on.
- mum has offered to buy the house, she has offered and we would accept £190k which would pay off the remaining mortgage plus fees etc.
- mum can give me £100k now and £90k (hopefully) when she sells her property
- due to a work move we have bought a property in the south west which we are looking at doing some work on (value ~£315k, mortgage ~£225k)
What are our options, generally, with the BTL?
What are the thoughts on whether I put the £100k into it then remortgage to another BTL or normal mortgage?
Could we just remortgage back onto a "normal" mortgage in the interim as we wouldn't be deriving an income?
If we had a normal mortgage could mum pay it off on our behalf? she can't get a mortgage due to her age.
If we went normal mortgage and with the LTV being at 45%, could we go for an interest only, if/when mum dies/moves out we would sell the property anyway so the value would pay off the equity.
Lots of questions for a Sunday morning... 😉
Thanks in advance,
Dave
A bit of background to a slightly complicated situation...
- we are currently own a property (value ~£200k) in the north which we are renting out. The mortgage is on a BTL and at a high LTV (~90%). Current rental income doesn't cover mortgage and we are set elsewhere so are looking to sell on.
- mum has offered to buy the house, she has offered and we would accept £190k which would pay off the remaining mortgage plus fees etc.
- mum can give me £100k now and £90k (hopefully) when she sells her property
- due to a work move we have bought a property in the south west which we are looking at doing some work on (value ~£315k, mortgage ~£225k)
What are our options, generally, with the BTL?
What are the thoughts on whether I put the £100k into it then remortgage to another BTL or normal mortgage?
Could we just remortgage back onto a "normal" mortgage in the interim as we wouldn't be deriving an income?
If we had a normal mortgage could mum pay it off on our behalf? she can't get a mortgage due to her age.
If we went normal mortgage and with the LTV being at 45%, could we go for an interest only, if/when mum dies/moves out we would sell the property anyway so the value would pay off the equity.
Lots of questions for a Sunday morning... 😉
Thanks in advance,
Dave
0
Comments
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Is mum buying it to rent it, or live in it Dave?I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Thanks for the response.
The ideal from my perspective would be that she buys it outright. There maybe an option where the mortgage is in my name but she pays the monthly payment.
D0 -
Is she buying it to live in it, or buying it to let it out?I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
She would be living in The house.0
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This is a complex case.
Not one to be discussed on here as there are numerous complications and considerations. Have a whole of market mortgage broker assist you.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
No worries, but thank you for the posts.0
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