Desperate Mortgage Advice Needed

Dan-Dan

You dont have to pay back your Dad when he clears your 13k debts?

Irratus_Rusticus

Haydn_26 wrote: »

This is exactly what has been proposed to the FA, he says its dooable and we are meeting him next week. Glad you've been able to summarise it in a way I couldn't. I believe the banks call this a concessionary purchase unless I'm mistaken .

Fascinated by this topic and found this...

http://www.trinityfinancialgroup.co.uk/article/600000-concessionary-sale-for-purchase-of-parents-home

Quote: "As the purchase was a family transaction and a deposit did not need to change hands, we approached a specific lender happy with this type of transaction. They did not have any issues with the parent's continuing to live in the property."

Mind you, at risk of setting hare running again, not clear how if/how parents' interests were protected, or if they just became lodgers to their kids, reversing the family roles, but you seem to have had that clarified so I'll head for the door now. Good luck.

Haydn_26

Yes, interest free. Without the debts I can borrow 115-120k. My dad would raise the purchase price to 113k to cover my debt repayment if that makes sense.

Pixie5740

Irratus_Rusticus wrote: »

Fascinated by this topic and found this...

http://www.trinityfinancialgroup.co.uk/article/600000-concessionary-sale-for-purchase-of-parents-home

Quote: "As the purchase was a family transaction and a deposit did not need to change hands, we approached a specific lender happy with this type of transaction. They did not have any issues with the parent's continuing to live in the property."

Mind you, at risk of setting hare running again, not clear how if/how parents' interests were protected, or if they just became lodgers to their kids, reversing the family roles, but you seem to have had that clarified so I'll head for the door now. Good luck.

1) That article is from 2013, before the tighter mortgage lending regulations were introduced in April 2014.

2) Yes it's possible for parents to gift deposits in the form of equity. The issue is that should the OP's mother have a 2nd charge on the property then that money is not being gifted to the OP so in actual fact that actual amount of equity being gifted to the OP wouldn't be as much as originally was indicated in the OP (but still better than a poke in the eye with a sharp stick). The article you have linked to doesn't mention anything about the parents having a 2nd charge on the property so it's not really comparing apples with apples.

3) If the OP's mother does have a 2nd charge on the property this doesn't mean to say she gets to live there. Only that she would get the money if the property was sold or repossessed, and the 2nd charge could make it more difficult for the OP if/when they come to remortgage further down the line. In what circumstances could the OP's mother demand the 2nd charge to be repaid? (That's rhetorical and something that the OP and his mum would need to work out).

Pixie5740

That all said, the OP is taking independent (and I hope it is independent) financial advice so if the adviser has all the facts i.e. that not all the equity will be gifted, that the mother will want a second charge, etc and thinks it is doable then take the advice of the professional rather than some internet strangers.

hign10pines

Your mum is being screwed over

DaftyDuck

Where does this go in ten - fifteen, or even twenty - years time? Your mother is still alive, aged, infirm. You have now been married (divorced and remarried) for many years, have three darling little sprogs and...

Really, where does this lead you. your mother, or your family?

Haydn_26

DaftyDuck wrote: »

Where does this go in ten - fifteen, or even twenty - years time? Your mother is still alive, aged, infirm. You have now been married (divorced and remarried) for many years, have three darling little sprogs and...

Really, where does this lead you. your mother, or your family?

You're absolutely right , ill consult our independent fa to ensure this is looked at.

fairy_lights

What if your mother decides to remarry at some point?

RAS

Haydn_26 wrote: »

You're absolutely right , ill consult our independent fa to ensure this is looked at.

What you need to do is talk to mum. Insist that she goes and see a good divorce lawyer.

And then keep out of the way.

At the moment dad is using you to screw over mum.

Keep out of it, as she will come to hate you some time in the future.