Property ownership transfer and mortgaging

dreamdim

Hi, my step father has a property with an outstanding mortgage of 20% of its value. My salary is around 20% house's value. We want to transfer the house ownership in my name and I will get a new mortgage in my name. I want to release 40% equity on top of 20% outstanding mortgage, so LTV will be around 60%. I currently have my own mortgage with around 60% LTV.

The question is where do I start..
Who do I go to to arrange the property to be transferred into my name?
Will I have to get BTL mortgage?
Do you need to have a good credit score? I remember reading that BTL mortgages do not require very good credit score i guess because of a min 25% cash deposits.

Thanks in advance!

Caz3121

does your step father currently live in the property?
where will he live when you purchase the property?

dreamdim

Caz3121 wrote: »

does your step father currently live in the property?
where will he live when you purchase the property?

He lives in the property currently and he will be living here after the purchase. Thanks

Caz3121

Figures may help...are we talking about £50k properties or £500k properties...would your income support both mortgages? does your step-father claim any benefits or may require care in next few years?
step-father will be 'giving away' 80% of the property value so will likely be assessed for any means tested benefits as if he had the ££££s
there will be no housing benefit payable and I assume you would not be expecting someone that gave you 80% of the value of their property to pay rent
Future care costs will likely consider the house value
similar post here https://forums.moneysavingexpert.com/discussion/5687635/can-i-buy-my-parents-house
You say "we want to transfer it" into your name...I can see what is in it for you but why would your step-father want to do this?...It would be far simpler to will it to you on his death. Could you take the equity out of your own property for whatever you needed the extra 40% for?

dreamdim

Thanks Caz. I think the link to a similar post is what I needed. As I understand I would have to get a second home mortgage as my parents would be in it as tenants in common.

Unfortunately, here is not "enough equity" to release in my own property. My own house outstanding mortgage is 2 x my salary. My parents house's new mortgage will be 3 x my salary including the released equity. He does not receive any benefits. He is still working and will be for next 5-7 years.

I want my parents to enjoy the life, so I decided to take over the mortgage payments and with some of the extra money going to get a camper van. Some money can be used for a start up business. Killing 2 birds with one stone. If anything happens to me I have a life insurance which covers both mortgages.