Is this a mortgage solution?

Petsephone

This is this the situation :
128,00 left on mortgage
Repaid in 15 years when i will be 75 so not repaid before I retire
Eldesr child a pupil barrister wirh good prospects
Possible solution :
Get daughter involved in paying mortgage
Issues :
She would be liable for it but i would pay it . Repayments obviously very low if it was over 25 years
Is this possible ?
Also can I put it in a revocable trust at hecsamw time .
Any thoughts about the possibility of doing this and the pitfalls would be appreciated. I could go to a lawyer I know but don't want to put daughter in conflict of intetest (anyway she is criminal law) and don't want to pay for property lawyer if someone has already tried this and it's a dead duck .

Petsephone

This is this the situation :
128,00 left on mortgage
Repaid in 15 years when i will be 75 so not repaid before I retire
Eldest child a pupil barrister wirh good prospects
Possible solution :
Get daughter involved in paying mortgage
Issues :
She would be liable for it but I would pay it . Repayments obviously very low if it was over 25 years
Is this possible ?
Also can I put it in a revocable trust at hecsamw time .
Any thoughts about the possibility of doing this and the pitfalls would be appreciated. I could go to a lawyer I know but don't want to put daughter in conflict of intetest (anyway she is criminal law) and don't want to pay for property lawyer if someone has already tried this and it's a dead duck .

Westminster

I’ve merged your two threads

YHM

Confused.

Why do you need to add your daughter? Are you struggling with the current repayments?

Petsephone

Well . I want to be able to pay it off in less time so if it had a low repayment each month the difference could be saved and paid off in lump sums . If i don't pay it off i will have to move when i retire and down size . This way i would acrue more capial , I think . I would have at least one dependent when I retired

National_Debtline

Hi Petsephone,


From your post (if I have understood it correctly) your concern is that when you retire in around 5 years time, you won't be able to afford the mortgage payments so want to look at possible solutions now.


If your daughter was to pay the mortgage on your behalf (as the mortgage stands at the moment) then that would be her choice. Any third party can pay anyone else's debts. She would not be named on the house so not liable for the payments from the banks perspective, but you would need legal advice about how this would affect her 'interest' in the property.


However, if you were to re-mortgage the house jointly with your daughter or sell it to her, but continue to live in the house and effectively pay her rent, you would again need legal advice about the implications of this. If none of this is possible, but you know the house would be unaffordable when you stop working, you could look at equity release with an independent financial advisor, or, possibly, look to sell.


Laura
@natdebtline

clairebeth

I'm so sorry, I can't quite understand your situation. Will you have the means to make the mortgage payments until you are 75? If you want to pay it off sooner, what is stopping you from overpaying?

AnotherJoe

Petsephone wrote: »

Well . I want to be able to pay it off in less time so if it had a low repayment each month the difference could be saved and paid off in lump sums . If i don't pay it off i will have to move when i retire and down size . This way i would acrue more capial , I think . I would have at least one dependent when I retired

Then overpay !!!!!

Your maths is faulty, because if you extend the mortgage the total interest paid will be more and it certainly makes no sense at all to save the lump sums from a smaller mortgage payment and then overpay, thats just equivalent to paying a shorter mortgage except in lumps !!

Anyway this is likely a non starter as it will impose all sorts of costs on your daughter and most likely will make it impossible for her to buy a house for herself as well as making her liable to increased tax on any home she could buy.

I suggest you Move / Downsize if you cant afford your current mortgage or wont be able to later or just overpay now if you can.