Transfer ownership to parents

ahfh1

Hi,

My parents have seen a property that they would like to retire in but they cannot afford to buy it until they have sold their property. They can't take out a mortgage due to their old age and they don't earn an income as they have retired.

I can buy the property that they like on a buy to let mortgage and rent it out for 6 months, which will give them enough time to sell their property, and then use the funds to pay off the buy to let mortgage.

I will have already have paid stamp duty on the property, but how would my parents avoid paying stamp duty on the property when it gets transferred into their name?

Could I name them as the registered property owners (rather than myself) on form TR1 at the moment I take out the buy to let mortgage? So essentially, the buy to let mortgage will be in my name, but the property will be in my parent's names.

Thanks

Thrugelmir

Lender will require you to put the property in your name. Without this they have no ability to secure the debt.

The fact that it will be family renting the property. Will mean that you will require a lender offering regulated products.

xylophone

The fact that it will be family renting the property.

I thought the idea was for the OP to take out a buy to let mortgage and let the house to a third party for six months while his parents arranged to sell their house? They would then buy the property outright from the OP, enabling him to repay the mortgage?

However, they would have to pay SDLT.

Is there any reason why the parents should not put in an offer for the property while selling their own in the normal way, rather than going through the rigmarole of the son's buying it first?

TrickyDicky101

xylophone wrote: »

Is there any reason why the parents should not put in an offer for the property while selling their own in the normal way, rather than going through the rigmarole of the son's buying it first?

Presumably because until they have a firm offer they are not proceedable so the prospective vendor is unlikely to take the property the parents want off the market.

May not hurt to indicate an interest though.

ahfh1

TrickyDicky101 wrote: »

Presumably because until they have a firm offer they are not proceedable so the prospective vendor is unlikely to take the property the parents want off the market.

May not hurt to indicate an interest though.

That's correct. Also means that my parents aren't in a chain because they aren't relying on their own house to be sold first/at the same time, and would therefore be a more attractive proposition.