What are my options please?!

Warren1989

My income is not taxable so I cannot get my own mortgage and according to a lender I have no income (gambling income).

My parents have an unencumbered property and want to help me out.

I can afford mortgage repayments and could contribute a 50% deposit if needed.

Any chance of a mortgage without any income requirements that is paid/guarantored by my parents? Or could they be on the mortgage but not have their name on the deeds? Then I just pay the mortgage, or pay them, then they pay the mortgage?

Thrugelmir

Simple answer is no, total non starter.

SavingSteve

They could buy another property as a buy to let, charge you a market rate rent and use that rent to pay off the mortgage.

They'd incur higher interest rates associated with buy to let. Given they have an unencumbered property they could approach lenders to borrow against that, stating their purpose is to use the proceeds to buy an investment property / buy to let property. They would be assessed on their own earnings and affordability.

Once all paid off they could gift you the property (if they so choose). As long as they then don't pass away for a certain number of years (you'll have to check the number of years) the gift will be exempt from inheritance tax.

OR if their income is enough to afford the mortgage you could all buy the property (enter into a deed of assignment to determine the property shares). You'd all be equally in the hook for the mortgage payments. Once all paid off, again they can gift it to you as above.

csgohan4

OP, get a job that pays tax and ditch the gambling as Lenders do not like gambling your bank statements. Means you are unreliable and risky no matter how you earn

AnotherJoe

How about, you pay your parents the 50% price on the unecumbered property so they have sold half of it to you (so you are now both on the deeds 50/50 share) ) along with a loan for the other half that you pay them back at an agreed rate and with a legal agreement that states for each months payment your ownership percentage increases at an agreed rate?

SavingSteve

I think he wants to buy another property, not the unencumbered one?

Is it just me or are there a lot of one post wonders on this site recently?

AnotherJoe

SavingSteve wrote: »

I think he wants to buy another property, not the unencumbered one?

Is it just me or are there a lot of one post wonders on this site recently?

Sell the unencumbered one and buy a different one ?

I don't think any more than usual.

Warren1989

SavingSteve wrote: »

They could buy another property as a buy to let, charge you a market rate rent and use that rent to pay off the mortgage.

They'd incur higher interest rates associated with buy to let. Given they have an unencumbered property they could approach lenders to borrow against that, stating their purpose is to use the proceeds to buy an investment property / buy to let property. They would be assessed on their own earnings and affordability.

Once all paid off they could gift you the property (if they so choose). As long as they then don't pass away for a certain number of years (you'll have to check the number of years) the gift will be exempt from inheritance tax.

OR if their income is enough to afford the mortgage you could all buy the property (enter into a deed of assignment to determine the property shares). You'd all be equally in the hook for the mortgage payments. Once all paid off, again they can gift it to you as above.

Seems like this would have lots of costs with potential CGT and income tax for them. Plus I wouldn't own any of the property.

Warren1989

SavingSteve wrote: »

I think he wants to buy another property, not the unencumbered one?

Is it just me or are there a lot of one post wonders on this site recently?

Correct. They will remain in their property. I will buy a 2nd property of my own.

Warren1989

How about buying the property outright with combined funds, then in 1 year might I be able to take out a small mortgage on the property? Even with no proof of income, if I don't make the repayments there would be a lot of equity in the property for the lender to claim potentially?

How strict are lenders when it comes to remortgaging if it is for <50% of the property value?

SavingSteve

Warren1989 wrote: »

How about buying the property outright with combined funds, then in 1 year might I be able to take out a small mortgage on the property? Even with no proof of income, if I don't make the repayments there would be a lot of equity in the property for the lender to claim potentially?

How strict are lenders when it comes to remortgaging if it is for <50% of the property value?

Could you buy it with combined funds? Do your parents have enough cash to pay for the other 50%? Or would they need to take out a mortgage? If the latter they'll need to declare why, and not sure many lenders would be keen on a mortgage to gift money to their offspring (not sure though) and they'd need to pass affordability checks on that remortgage.

Regardless of LTV you will not get a mortgage on Gambling income. Just not going to happen.

If you can jointly buy it outright can you not just have a legally drawn up loan between you and your parents whereby you repay them instead of the bank? They'd of course need to pay tax on this income.

Also, there is no CGT to pay if you gift a property per my earlier suggestion, as they've made no money, its a give away for zero, thus no gain to tax.