We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Kids buying part of my house
Options

stanmore_2
Posts: 1 Newbie
I would like to help my kids to get on the property ladder by selling two thirds of my house to them whilst retaining my one third share of the property.
We all live together anyway, so the 'rent' that they pay me currently would effectively pay their share of a new mortgage. The new mortgage would enable me to pay off my current mortgage and it would leave me debt-free.
If and when we all decide to go our own separate ways we would divvy up the proceeds of the sale after paying off their mortgage.
If this happened within say a 3 year period they would at worst have lived on reduced cost basis. After a longer period they could even see a profit and we would have the increase on our original equity, plus the original stake.
Having run this idea passed a mortgage broker, we've been told that it isn't possible because mortgage lenders would not like the idea of 'sitting tenants' who have equity in the house.
Any thoughts?
We all live together anyway, so the 'rent' that they pay me currently would effectively pay their share of a new mortgage. The new mortgage would enable me to pay off my current mortgage and it would leave me debt-free.
If and when we all decide to go our own separate ways we would divvy up the proceeds of the sale after paying off their mortgage.
If this happened within say a 3 year period they would at worst have lived on reduced cost basis. After a longer period they could even see a profit and we would have the increase on our original equity, plus the original stake.
Having run this idea passed a mortgage broker, we've been told that it isn't possible because mortgage lenders would not like the idea of 'sitting tenants' who have equity in the house.
Any thoughts?

0
Comments
-
No advice I'm afraid but what a shame it doesn't seem possible. It looks like such a good idea!0
-
Sitting tenants with equity in the house = joint owners in plain english.
It wouldn't be a straight forward remortgage as the ownership changes, but I don't see why it should be a problem. Three owners, three names on the mortgage - sounds logical.
There are inheritance tax implications, if you didn't survive for 7 years and there could be problems if you needed residential care in the near future but these problems could be sorted with appropriate insurance.
Either the broker didn't understand or you need a second opinion.
I am assuming that the children are over 18 to be able to hold the property in their own names.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 351K Banking & Borrowing
- 253.1K Reduce Debt & Boost Income
- 453.6K Spending & Discounts
- 244K Work, Benefits & Business
- 598.9K Mortgages, Homes & Bills
- 176.9K Life & Family
- 257.3K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards