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Swapping homes with family member with existing mortgage?
Michaela1996
Posts: 1 Newbie
My mother has offered to swap homes with me, with her home being worth at least £180,000, and mine being worth £125,000. However, I have a mortgage on my property of around £70,000.
Therefore, my mum has proposed that I can own her house, as long as she can move into mine, and I continue paying the mortgage until it has been paid off.
Is this legal and possible?
Therefore, my mum has proposed that I can own her house, as long as she can move into mine, and I continue paying the mortgage until it has been paid off.
Is this legal and possible?
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Comments
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If you want to change legal ownership, no it isn't.
You'd need to go through the formal sale/purchase process and apply for a mortgage for the new property.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
I think it might be better just to swap, continue with mortgage and then do the legal stuff to change ownership once mortage is paid. There may be some hoops to jump through with mortage co and insurers etc.0
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Things to consider,
The age of your mother,whilst a house swap may seem a good idea in principle what would happen if she were to need care in the future,
By having an informal house swap where you continue to pay your mortgage but live in her house what impact would it have on you if your mothers house were sold.
Mabe if it is a case of your mum wanting something smaller she perhaps should look at selling her property and downsizing with hopefully a small lump sum left to enjoy retirement.in S 38 T 2 F 50
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What are you trying to achieve? It sounds as if you will move to a smaller house and your mother to a larger one where you would still be paying the mortgage.
It looks like a good deal for your mother but not for you.
Edit: Disregard this, I misread the OP. I'll leave the original otherwise Bertie's comment won't make sense.0 -
Well, yes, because it's almost certainly a breach of the mortgage conditions for the borrower to move out and allow somebody else to occupy the property (even if it is a family member), and insurance is also probably on the basis that it's occupied as the policyholder's main address. The lenders may well say no.AnotherJoe wrote: »I think it might be better just to swap, continue with mortgage and then do the legal stuff to change ownership once mortage is paid. There may be some hoops to jump through with mortage co and insurers etc.0 -
Well, yes, because it's almost certainly a breach of the mortgage conditions for the borrower to move out and allow somebody else to occupy the property (even if it is a family member), and insurance is also probably on the basis that it's occupied as the policyholder's main address. The lenders may well say no.
[FONT=Verdana, sans-serif]And there may be capital gains tax to pay by both parties as neither would be living in the house they owned.[/FONT]0 -
What are you trying to achieve? It sounds as if you will move to a smaller house and your mother to a larger one where you would still be paying the mortgage.
It looks like a good deal for your mother but not for you.
How do you work that out?Michaela1996 wrote: »My mother has offered to swap homes with me, with her home being worth at least £180,000, and mine being worth £125,000. However, I have a mortgage on my property of around £70,000.
Therefore, my mum has proposed that I can own her house, as long as she can move into mine, and I continue paying the mortgage until it has been paid off.
Can't she sell you her house for £125000 and port your mortgage?0 -
Not very well - I misread the OP and will add something to my post.bertiewhite wrote: »How do you work that out?0
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