1st Mortage - Investment Property?

LiamBond1990

Hi There,


I am lucky enough to be in a financial situation where I am ready to buy a property - however due to other things (not being settled in one location) I am in a living situation where it doesn't make much sense.


Is it possible for me to gift the deposit money to someone else (father), cover the stamp on him buying another property and have that money earning equity on a student flat for example - where the rent would be double my mortgage costs, allowing me to overpay a little, rather than have that money sit there earning dismal interest rates? This is with the aim for him to transfer the mortgage to me after I have my own home on a helptobuy basis (separate funds).


Thanks!

ACG

Yes, but I would check the sums as you (your dad) would end up pay stamp duty + the surcharge on the purchase, possibly liable for CGT when transferring it to you + stamp duty and the surcharge when you take ownership of it.

Would 2 lots of stamp duty and the surcharges be more or less than the HTB bonus you might get (assuming it is still running in a few years).

ACG

Also, you would probably need a will/life insurance/both - if your dad passes away, who is the beneficiary from his estate? Is it mum/siblings/a new wife?

Would there be any inheritance tax due?