Parents are getting me a mortgage

leebates81

Hello,

So after finding a property and finding out i cant get a btl mortgage my folks have done a joint application and successfully got a mortgage we are now just waiting for the solicitors to do their bit.

Is their anyway of then getting this in my name? maybe in about five years?

I'm going to be paying each month along with the tenant?

any help would be great think I need to talk to solicitor!

AnotherJoe

What's happening in 5 years ?

Thrugelmir

leebates81 wrote: »

any help would be great think I need to talk to solicitor!

Perhaps an accountant as well.

leebates81

remortgage

Mr.Generous

both will incur 3% stamp duty - your parents now if they own more than 1 property and you when you transfer it over if you are also buying by then. Better buying in your name now and get them to act as guarantors if you can.

ViolaLass

Why will you be paying along with the tenant? Is the rent not enough to cover the mortgage?

leebates81

it covers it but i want a lump sum there after five years to either pay some of the remaining balance off or pay my folks some back as they're helping me with deposit etc

leebates81

this is the only way people and it's happening

Richey_

Lee it's your life, crack on.
Why come here seeking approval?
People give opinions, upto you what you make of it

Thrugelmir

leebates81 wrote: »

this is the only way people and it's happening

Clearly you haven't thought things through in your attempt to circumnavigate the rules. That's all people are saying.

ACG

So your parents (assuming they own their own property now) will have to pay a higher rate of stamp duty. If they "sell" it within 3 years they can claim that back. You will also have to pay stamp duty (subject to the purchase price) when you buy it and your parents may have to pay capital gains tax. Thats before you count in parents legal fees for buying + parents legal fees for selling + your fees for buying + 2 x valuation fees - likely to be well in to the thousands of pounds.

It could be a very costly way of doing things assuming you did not get professional advise from an accountant and mortgage broker.

Assuming your income and credit report stacks up at the time you can purchase the property from your parents. If its not too late it might be worth speaking to a broker to see if it can be done in your name. One lender saying no is not the same as every lender saying no.