Gifted deposit mortgage advice desperately needed please!

superchickadee

Hello,
My parents bought a house that we wanted and we live in it and pay the mortgage and insurance etc. We are now in a position (we hope) to buy the house from them. We got it rather cheap so are hoping that a gifted deposit will give us a good ltv and more chance of getting the mortgage in the first place.
My questions are:
Would my parents have to pay capital gains on the gifted deposit amount?
We were considering just getting a 10% gifted deposit and using the extra profit to pay off some credit card debt, obviously my parents would have to pay ctg on that which we would give them but I dont know whats better - do that now or get a better ltv and remortgage down the line to pay off the credit card debt?
The debt is in my name so I was thinking of just getting the mortgage in my husbands name as he has a good credit rating (I have a great rating but we shifted all the debt into my name for mortgage purposes) will they let us get a mortgage in just his name?

Sorry for the essay, I just really want to buy it back form my parents as they have done so much for us and I don't want it to drag on any longer.

Thanks in advance 😀

kingstreet

CGT is payable on the market value regardless of what you actually pay for the property.

Conversely, stamp duty is based on the actual consideration paid.

Presumably they are gifting you equity, not cash so your deposit will be the difference between the true value and the amount you are being asked to pay?

I don't understand how you intend to repay card debt?

superchickadee

Thanks, I thought if we got a lager mortgage, paid my parents what they paid, then the difference would be profit? Profit my parents would then give back to us. Its just some random thoughts bubbling around my mind...I thoughy they only paid ctg on the profit they make from the sale?
Think I need professional help (in more ways than one hahaha)

Keep_pedalling

Do you have anyy idea of what sort of gain we are talking about?

amnblog

This is not a gifted deposit issue. It's a concessionary purchase one.

Big difference mortgage-wise.

Engage a broker.

getmore4less

superchickadee wrote: »

Hello,
My parents bought a house that we wanted and we live in it and pay the mortgage and insurance etc. We are now in a position (we hope) to buy the house from them. We got it rather cheap so are hoping that a gifted deposit will give us a good ltv and more chance of getting the mortgage in the first place.
My questions are:
Would my parents have to pay capital gains on the gifted deposit amount?
We were considering just getting a 10% gifted deposit and using the extra profit to pay off some credit card debt, obviously my parents would have to pay ctg on that which we would give them but I dont know whats better - do that now or get a better ltv and remortgage down the line to pay off the credit card debt?
The debt is in my name so I was thinking of just getting the mortgage in my husbands name as he has a good credit rating (I have a great rating but we shifted all the debt into my name for mortgage purposes) will they let us get a mortgage in just his name?

Sorry for the essay, I just really want to buy it back form my parents as they have done so much for us and I don't want it to drag on any longer.

Thanks in advance ��

How cheap?
Whats it worth no

Did they use cash or a mortgage?

You seem to have been taking action like moving debt without understanding the implications.

kingstreet

superchickadee wrote: »

I thoughy they only paid ctg on the profit they make from the sale?

Yes, market value minus price paid.

Not concessionary price they use to sell to you minus price paid.

superchickadee

Thanks for the responses. I have just had the house valued. Its worth 145-150k My parents used a mortgage to buy this house for 106k. I understand its a concessionary purchase now, so my issues are ctg, I need to find a mortgage broker with experience of all this , my main concern is paying my parents back and covering any ctg and other costs that the sale will incur.

foxy-stoat

Depends how much they paid for it, am sure they can come up with enough "evidence" that the actual gain will be quite small - am sure you or your partents spent money on the property, new bathroom, new kitchen, carpets etc, if not now would be the perfect time to upgrade, to save on the CGT...the costs of the sale are tax deductable as well.

cahillg81

Are you currently living in the property and have your parents ever lived in the property?

There will be ways getting it through a lender but you are going to be restricted.


Where it may fall down is on the plausibility.

superchickadee

Hi
Yes we live in it and my parents have never lived in it - they paid 106k, however to be even more annoying and complicated- they took out 112k mortgage on their own house because I needed the extra to damp proof my old house and rewire etc ready to rent it out (it won't sell).

Yes, the house has had considerable improvements made....every room done, brand new kitchen, boiler etc so that could help with the tax? Thanks so much.

Its rather complicated this malarkey!!

I really appreciate all of your advice, thank you x