Buying house from parent

Marie-Louise

Hi,

I am hoping for some advice regarding buying my Mum’s house. She can no longer afford to live there, it has a small annexe attached where my grandmother lived until she died recently. Our plan is that my husband and I sell our house and buy hers and move there with our children and she live in the annexe.

We have come up against some issues, we planned to port our mortgage over to avoid early repayment fees or £4000. Our mortgage company said this was possible but Mum would not be able to remain in the property. They also said that we would find it very difficult to get a mortgage from anyone who would allow her to stay.

My questions are:
1. Has anyone ever done something similar successfully and can share their experience?
2. Does anyone know of alternatives? We had thought about her transferring the mortgage to our names or adding one of us on but unsure if this is even possible.

Hope someone can offer some advice.

getmore4less

What mortgage is on mum's house.

You could just take the hit on yours sell up and move in with mum paying that mortgage.

You can structure it as a debt.

If you have enough equity to pay off mum's mortgage you can do what you like.

Marie-Louise

Thank you, my concern is then when the mortgage is paid off it’s still in Mum’s name, if she transfers to us there seems to be a requirement that she does not remain living in the property which is not possible.

amnblog

Yes, you can this.

Yes, she can stay (we do these cases all the time)

But, not without changing lenders when you buy from Mum, and paying the ERP with your current Lender.

All you need is the right advice and the right Lender.

getmore4less

Only if you have your current mortgage that she is not on.

There are ways around the ownership issue.

Full picture of what you have would help see what options there are.
You have stumbled because you have only considered one so far you buying the house.

If I was mum I would be wanting security so you can't kick me out.

Marie-Louise

Thank you, she is currently paying an interest only mortgage, it has £110,000 left to repay and 10 years left on the term. Our original plan was to port our own mortgage, or if not possible pay the early repayment charge and buy her house so hopefully that seems it will still be possible although our current mortgage company have suggested otherwise. She has spoken with a solicitor who advised that we should draw up a legal agreement to protect her which we will of course do.

amnblog

Your mortgage provider does not understand the wider market.

They are incorrectly assuming their view is universal.

getmore4less

How much equity in your place?

With 10 years to run on the mortgage you could just move in and pay that one between you about £1kpm