Building own home with remortgage

E10NMA

Ok so myself and wife are self employed doing well enough are finding it difficult to get a self build mortgage on land that was gifted to us by my father and mother. Planning passed etc. Just they wont lend against our income even though we are doing well.
Looking at possible options:
- Parents remortgage their house, build ours then sell it to us at a later stage for cost of build not market value
- Buy my parents house from them (for the cost to build my house) they then build me my home with that money and we in the future transfer new house to myself and parents house back to them
Does this sound crazy as Ive exausted every avenue to get a self build or bridging loan at this point
Cheers

Old_Git

get your parents to lend you the money .The new build will be in your name .Then mortage the new build to pay back parents.

E10NMA

Id love to only they wouldnt have that kind of money maybe them remortgaging is best option then buy it off them with mortgage, any possible tax issues you could see?

saverbuyer

E10NMA wrote: »

Id love to only they wouldnt have that kind of money maybe them remortgaging is best option then buy it off them with mortgage, any possible tax issues you could see?

Couple of potential problems. Parents age limiting the remortgage term length. Parents income not meeting MMR requirements. Banks not lending based on the remortgage reason. How many year's accounts do you have? Have you talking to a good broker?

E10NMA

Thanks for your help yes all thought of which is why the potential of me buying my parents house and freeing up the money that way and 'technically' my parents build my house. I have a broker but in NI there are only a few lenders and they seem very iffy about self build mortgages for some reason possibly because its on our farmland along with the fact that we are self employed!

saverbuyer

E10NMA wrote: »

Thanks for your help yes all thought of which is why the potential of me buying my parents house and freeing up the money that way and 'technically' my parents build my house. I have a broker but in NI there are only a few lenders and they seem very iffy about self build mortgages for some reason possibly because its on our farmland along with the fact that we are self employed!

How many years accounts? Depending on your parents age buying their house throws up potential problems.