We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
Buying fathers house
katie1234
Posts: 130 Forumite
Hi All!
We have lived with my father for 4 years now unintentially at the start. It's worked out so well that we've decided to stay put.
He owns his house outright but the house needs a lot of work done. The work has been estimated and we would need a mortgage ideally to raise the funds.
He is 70 and retired so would be unable to obtain a mortgage. He's happy to sell us the house and use the funds for the work but also needs some security if we were to own the house.
We have had conflicting advice from mortgage advisors and 2 different solicitors as to how to do this.
My question is this, could we all go on the deeds (my dad,husband and myself) and myself and husband alone obtain a mortgage?
Or is there another way to do this?
The house would go to me and me alone if anything were to happen my dad as it is. We basically just need to raise some money on the property to be able to all live in it comfortably.
Katie
We have lived with my father for 4 years now unintentially at the start. It's worked out so well that we've decided to stay put.
He owns his house outright but the house needs a lot of work done. The work has been estimated and we would need a mortgage ideally to raise the funds.
He is 70 and retired so would be unable to obtain a mortgage. He's happy to sell us the house and use the funds for the work but also needs some security if we were to own the house.
We have had conflicting advice from mortgage advisors and 2 different solicitors as to how to do this.
My question is this, could we all go on the deeds (my dad,husband and myself) and myself and husband alone obtain a mortgage?
Or is there another way to do this?
The house would go to me and me alone if anything were to happen my dad as it is. We basically just need to raise some money on the property to be able to all live in it comfortably.
Katie
0
Comments
-
If you bought the house from your father it could be done on a gifted deposit basis, this used to be common before the financial crisis of 2007/8, I'm not sure how common it is now however I do know that there is one lender planning on offering mortgage products for family members to buy off other family members. I don't think the lender I'm thinking of is quite there with it yet, but its a high street lender with good rates.
If your brokers know their stuff they will be able to advise you on this, its quite a recent development (as in last week) so if you took advice before then the broker wouldn't have known of it.I am a Mortgage Adviser
You should note that this site doesn't check my status as a mortgage adviser, 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 -
Yes, you can do this subject to using the correct lender and meeting other criteria.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 -
Are you and your father aware this may give rise to a capital gains tax bill for your father?0
-
POPPYOSCAR wrote: »Are you and your father aware this may give rise to a capital gains tax bill for your father?
Out of ignorance, why would that be the case? Isn't he selling part of his principle residence? Isn't that tax free?0 -
Our poster did indicate 'may'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 -
Which implies a reason. I can't think of one. Doesn't mean there isn't one but then OP should state it so that it can be avoided if possible. or they would understand if the "may" applied in their case.0
-
AnotherJoe wrote: »Which implies a reason. I can't think of one. ...
There is nothing in the OP that implies a reason. The OP has only told us that the father owns the house outright. He lives in it. Thus PRR applies.0 -
katie1234, food for thought? http://www.dailymail.co.uk/money/mortgageshome/article-3456295/Keep-family-three-key-ways-lenders-allowing-family-friends-help-time-buyers.htmlI am a Mortgage Adviser
You should note that this site doesn't check my status as a mortgage adviser, 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 -
Not sure where this Daily Mail article fits in?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 -
"It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"
G_M/ Bowlhead99 RIP0
This discussion has been closed.
Categories
- All Categories
- 347.2K Banking & Borrowing
- 251.6K Reduce Debt & Boost Income
- 451.8K Spending & Discounts
- 239.4K Work, Benefits & Business
- 615.3K Mortgages, Homes & Bills
- 175.1K Life & Family
- 252.7K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 15.1K Coronavirus Support Boards