HELP ON- Taking On My Dads Mortgage

Fortune_500

kazwookie wrote: »

1. I don't think you will get a mortgage on the information given.
2. Is your dad able to take a mortgage hoilday instead?
3. Is you dad able to get another job / agency work.

What's a mortgage holiday?

Kynthia wrote: »

Not many lenders allow the previous owners to remain in the property so you may struggle. Plus I'm assuming you have no deposit so you'll need a lender that will allow equity to be tge deposit.

You will own your parent's home. So they will be totally dependant for the rest of their lives on you not kicking them out ever, getting into financial difficulty and becoming bankrupt, getting married and then divorcing (as the property would be a marital asset), dying and leaving the property to someone else (eg a spouse), etc. A lot can happen in 20 or 30 years. Are you prepared to live with your parents for the rest if their lives, or would you move out and then possibly become a landlord with the responsibility and possible tax implications?

Why should your parents give away that much equity to you? It's crazy for them to do so and leaves them without options in the future. Never able to move elsewhere (either because they fancy a change or a more appropriate property), downsize or use equity release/lifetime mortgage to release money for things (travel, private medical treatment if something isn't covered on tge NHS, a new car, to fund a better than basic care home, etc). There could be inheritance tax due if they die within 7 years and it could cause issues or resentment with your sister due to uneven gift/inheritance from your parents with them possibly feeling bad too.

I don't think this is the best thing for your parents at such a young age. If you are thinking of them you will look into other solutions rather than do this or at least ensure they get proper legal advice so they can make an informed decision. You could go on a mortgage with them and have a deed of trust specifying what your share of the ownership is, they could look at ways of affording the mortgage until your dad finds work, they could downsize and be mortgage free, thry could see an independent broker for mortgage options, or see if any pensions are due to pay a lump sum soon that will go towards reducing the outstanding mortgage, etc.

If I needed some money for a deposit (though I'd prefer he not have to offer me more money) then that could be done. My parents would be dependent on me for the 7-10yrs it'd take me to pay off the mortgage. I want them to live here and wouldn't have it any other way. Because I have aspergers I'm very family orientated and want things to stay as they are (although it's unlikely my youngest sister will live here forever). My dad chose to do this because he knows I want ownership of the house and because he knows I would never kick them out (they'd probably stop being my parents if I did that). Aspergers is it's own explanation for why I won't be getting married. My mum was never going to want to move because she too is quite attached to the home, loves the area and has all her friends here and I think my dad's just happy to keep the roof over our head and doesn't want the stress of a mortgage in his name that he may not be able to keep the payments for. I'm never looking to move house, I couldn't handle it.There wouldn't be a problem with my sisters because it they know that for me it's not about the money, it's about having a home in which they're welcome any time in and of which will never be sold.

Going on the mortgage with them and having joint ownership certinly seems like one to consider, but I'd rather such a thing be a fallback position and would that require a re-mortgage? We're looking to reduce the monthly rate my extending the payment period. Getting mortgage advice (if just to do anything to improve my position) that seems wise.

At the end of the day money is all that matters to money lenders and I have a good credit history and a wage that could afford a new repayment term under the remortgage, so why wouldn't this be all they'd consider, anything else is totally moot and purely a trivial domestic issue by their wreckoning.

AnotherJoe wrote: »

Because they are people who might have a right to live in the house and would be difficult to evict, should you get into financial difficulties and they need to repossess the house.

Re the percent of your parents mortgage when the current period ends it's quite likely they could move to a lower fixed rate without any paperwork or needing to prove income etc.

How would my now unemployed dad be able to move to a lower fixed rate?

Mojisola wrote: »

They aren't reasons why a lender won't lend - they are reasons why your parents shouldn't hand over heaps of money to one of their children when they have many years of life ahead of them.

Other people on here seem to be trying to suggest that it is. That a previous owner can't occupy the same house as the new owner.

kazwookie

Google mortgage holiday and see which bank is the currently mortgage with google them and mortgage holiday.

AnotherJoe

Fortune_500 wrote: »

How would my now unemployed dad be able to move to a lower fixed rate?

]

When the current term ends the mortgage company will offer a variety of "retention options" in addition to moving onto the SVR. Might be something like a 2 year fixed rate of 1.9 % or 5 years at 2.5% for example. . In most cases there is no financial check for a retention product. So as long as you've been helping your parents pay the mortgage so there is no record of issues with payments they will likely be able to move seamlessly snd his unemployment won't be an issue as it won't arise.

p.s. Something to think about it. Your dad may have wishes for how to handle this situation but that doesn't mean it's the best plan. You could help him overpay now so the outstanding loan is lower when the time comes to renewal, which will give more options. He may have another job lower paid then but be able to afford it then, or you may be better able to get a mortgage yourself, or a retention deal may be the best plan.

Instead of rushing into a panic change now, by helping your parents out with the payments for a few years you will have more options when the time comes to renew.

Caz3121

how would your sibling(s) benefit from this. From what you have posted they are going to give over £360k to you and they get nothing
How many years self employed accounts do you have?
Has your dad enquired if SMI (Support for Mortgage Interest) is available to them?

tlc678910

Hi, I appreciate the extra information you have given. Your condition explains why you feel so certain that you will not want to move. However I don't believe your sister/s should get no inheritance because you have Aspergers. Particularly as you are very capable of earning a good living.

I think you, your sister and your mum could pay the mortgage together or as someone has suggested you go on a mortgage with your mum with a clear agreement of what % you will own.

Then you should save up so when the time comes you can afford to buy/mortgage your siblings share of the property.
Tlc

Fortune_500

tlc678910 wrote: »

Hi, I appreciate the extra information you have given. Your condition explains why you feel so certain that you will not want to move. However I don't believe your sister/s should get no inheritance because you have Aspergers.

I think you, your sister and your mum could pay the mortgage together or as someone has suggested you go on a mortgage with your mum with a clear agreement of what % you will own.

Tlc

Aspergers was used simply to defend against why I'd not turf anyone out (I'm too attached to them) and why the whole me getting married thing is invalidated. It justifies nothing else.
My sister doesn't really earn as she's a uni student due to start this september. A joint mortgage with a 50?50 share would be fine, but I think they know they can trust me implicitly.

Caz3121 wrote: »

How many years self employed accounts do you have?

I have been doing self employed work every month since April last year and the employed work since July last year.

Pixie5740

The 7 year rule for IHT wouldn't apply in this case because this would be a gift with reservation. The reservation being that the parents continue living in the property.

Your parents should seek professional advice before giving anything away so that they fully understand the implications of what they're doing (deprivation of assets etc, impact on your siblings, etc.)

nkkingston

I just want to throw out here I know several people with aspergers who are married. When love strikes, it doesn't care what syndromes you have!

Fortune_500

nkkingston wrote: »

I just want to throw out here I know several people with aspergers who are married. When love strikes, it doesn't care what syndromes you have!

Well (despite the risk of being shot for going off topic here) chances are those are probably women with aspegers a.k.a aspergirls (whom are more likely to) and not guys a.k.a asperguys (whom are unlikely ever to).:D

Thrugelmir

Fortune_500 wrote: »

Seriously, these are the reasons for a lender not giving the money, they're as weak as paper.

Doesn't matter what you think. Lenders have no need to take undue risk with mortgage lending.