Advice - Selling My First House and Buying my Mothers!!

NathRSW

Hi Everyone

I’m after a bit of advice but I have no idea where to start looking for it, so if this isnt the right place please point me in the right direction.

Here’s some basic information.

I brought my first house back in November 2003. I brought it in my own name but all the time my girlfriend has lived there with me. During this time she has been at Uni so I have had to make all of the mortgage and living costs. We have always agreed that when we move whatever value is left from the proceeds (Sale of House – Mortgage Value & Fees) would be used for a deposit on a new house. We also agreed that seeing as it has been my self that has made all the payments that whatever the value of the deposit is that it somehow should be noted that that if one day we decided to split up (I hope we don’t) that the money I paid for the deposit would be mine.

First Question – Is this possible? And Is it as simple as saying, OK the new house costs £200,000, I have £50,000 Deposit from the proceeds of selling my first house. So we note down on some kind of document that if we ever split up I’m entitled to 50k extra on the proceeds of the new house, or would it better as a %, so for example 50k of 200k is 25%??? I have no idea if this is possible any info would be greatly appreciated.

OK to make things more complicated, Well it is for me anyway

My Mum is moving abroad sometime in 2008. She has told me that she will sell her house to me & my girlfriend for 10k less than whatever the current valuation is when she decides to sell up and move away. Me and my girlfriend obviously like this idea as it’s a nice house in a nice area and seeing as my girlfriends has recently graduated it has a nice timing aspect to it as well.

Second Question – OK example: Mums house is say valued at £200,000, she agrees to take £10,000 of the valuation, So House price is now £190,000. I have £50,000 Deposit taking the mortgage value down to £140,000. Does this kind of transaction have any kind of Tax issues for my mother, or is she entitled to sell her house to me for under the price that is valued at?

Many thanks in Advance
Nathan

NathRSW

I have another idea actually but I have not thought it through properly.

I have what I would call a small balance left on my mortgage. I have actually recently thought instead of selling my first house I could rent it out instead. Would this be classed as buy to let?? Or could I keep my current mortage and use the rent payments to pay off my old mortage and some of my new mortgage?

I doubt it very much though seems to easy

Can someone give me an idea of a website or search words i can use on google so i can read a little a bit about it. For example what would i have to do if i wanted to rent it out instead of selling and what kind of costs would be involved

Many thanks Again