Strange predicament

imdeadbroke

Hi everyone,
I've just found myself in a strange predicament re. my mortgage and house. Im a homeowner with 101k mortgage balance fixed for 5 years, one year or so into the fixed rate term and 17 years left to pay. House is valued at 300-325k. We want to move house to another house which we can hopefully get at the same price at 325k.
Here's the predicament. My father has offered to buy the house cash so that we can do it up and stay in ours and then sell ours once all moved in. Here's the crux. We obviously have to pay him back. How on earth can this work?

mrginge

You sell your current house and give him the equity
Then you raise the rest by getting a mortgage on the new house.

Or am I missing something blindingly obvious?

PlymouthMaid

I think you have missed the fact that they they want to own both houses for a while and so cannot sell the first to buy the second.

flashg67

Guess the OP's father would own the 2nd house and have to wait for his money until the 1st house is sold and a mortgage raised on the 2nd one once he sells it to them. Or can the current mortgage be transferred - many are portable.

imdeadbroke

So if im correct. My father buys the house and owns it. We then sell ours and receive the equity. We give him the equity and then get a new mortgage for the balance. The bank sends him the money and we pay the bank back as a mortgage. So I guess this would mean we have to pay redemption on the 5 year fixed which isn't soo bad just hope we can get as good a deal as the current mortgage He's only doing it to help us as the new house can be done up and altered and as we have a big family we can stay in our current house until the work is done and then move in.

dimbo61

If your dad buys the new property and you then spend say 12 months doing up the property could you then move in and rent out your old home for say 3 years until the fixed rate deal ends?
Then sell your old home ( repay the mortgage and any Capital gains tax) buy new property off Dad who might even sell to you at the same price he paid.

TrickyDicky101

Dad buying now for you to purchase off of him in the future = unnecessary SDLT charge for you to pay.

Dad loans you money for you to purchase house = no second lot of SDLT to pay.

imdeadbroke

Thanks everyone. Think the plan will be for my father to transfer the money to me and we buy. In the meantime we will market our house ourselves also as don't think we shall need to use an estate agent as demand fro property is so high in our area and there's not many houses available. Might have to pay two. lots of mortgage for a bit but should be worth it.