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A property for mum and dad
rolandka
Posts: 12 Forumite
Hello there guys,
First of all, many thanks for all the valuable information I could get in this forum.
I'd like to get an advice regading a property we would like to purchase. Let me share a few details just to make things clear.
Property Value (Newly built flat, leasehold): £200,000
Available deposit: £15,000 - £20,000
Mum's (age 47) Income: £22,000 - Owned a house before in Europe, but not anymore - worth less than £40k
Dad's (age 55) Income: £22,000 - Owned a house before in Europe, but not anymore - worth less than £40k
My Income: £30,000 - Never owned land nor property before anywhere
Sister's Income: £25,000 - Owned a tiny land before in Europe - worth less than £40k
Mum and Dad lives and works full time in the UK. They are currently renting but would like to buy a property so that the children can inherit something later in life. They feel it is pointless to pay someone else's property. Mum and Dad jointly can not get a good enough mortgage, however they will be able to pay the monthly mortgage fees for a long period. Neither my sister nor me live with mum and dad. Also, we have no kids.
I have few questions regading this situation:
1. I do qualify as a First-Time Buyer but do My Sis or Mum qualify (individually)?
2. Even if they don't qualify, are they still eligible for any kind of Stamp Duty Land Tax relief (no owned properties or land right now)?
3. There are a multiple combinations to get a mortgage such as My Sister and Me, My Sister and Mum, Mum and My Sister, which would be the most advantegous?
4. Am I right thinking that whatever combination we choose we would not qualify as a First-Time Buyer?
5. Both of us (My Sister and Me) would like to buy a property later on with our partners. We want to minimize the effect this mortgage has in our our ability to get mortgages for our own properties later on.
6. The deposit could be increased if necessary but again that might affect our ability to get our own mortgage in the future.
7. If we don't qualify as First-Time Buyers, would it be just easier to get a "Buy To Let" mortgage and rent the property out to our parents? The rates are higher in this case so I'm not sure if it's worth it. However, this could count as an "income" for us when calculating our next mortgage later on. (it might be an advantage)
8. Lets say I took the mortgage with my Mum. In two years time, we could pay back a lump sum and remortgage the property. At that point, could my parents "take over" the mortgage? This would effectlively "clean" my status. Would I have tax advantage to get my own property (and better mortgage deal) compared to if I had my parents property on my name?
Many thanks for you answers in advance. :beer:
First of all, many thanks for all the valuable information I could get in this forum.
I'd like to get an advice regading a property we would like to purchase. Let me share a few details just to make things clear.
Property Value (Newly built flat, leasehold): £200,000
Available deposit: £15,000 - £20,000
Mum's (age 47) Income: £22,000 - Owned a house before in Europe, but not anymore - worth less than £40k
Dad's (age 55) Income: £22,000 - Owned a house before in Europe, but not anymore - worth less than £40k
My Income: £30,000 - Never owned land nor property before anywhere
Sister's Income: £25,000 - Owned a tiny land before in Europe - worth less than £40k
Mum and Dad lives and works full time in the UK. They are currently renting but would like to buy a property so that the children can inherit something later in life. They feel it is pointless to pay someone else's property. Mum and Dad jointly can not get a good enough mortgage, however they will be able to pay the monthly mortgage fees for a long period. Neither my sister nor me live with mum and dad. Also, we have no kids.
I have few questions regading this situation:
1. I do qualify as a First-Time Buyer but do My Sis or Mum qualify (individually)?
2. Even if they don't qualify, are they still eligible for any kind of Stamp Duty Land Tax relief (no owned properties or land right now)?
3. There are a multiple combinations to get a mortgage such as My Sister and Me, My Sister and Mum, Mum and My Sister, which would be the most advantegous?
4. Am I right thinking that whatever combination we choose we would not qualify as a First-Time Buyer?
5. Both of us (My Sister and Me) would like to buy a property later on with our partners. We want to minimize the effect this mortgage has in our our ability to get mortgages for our own properties later on.
6. The deposit could be increased if necessary but again that might affect our ability to get our own mortgage in the future.
7. If we don't qualify as First-Time Buyers, would it be just easier to get a "Buy To Let" mortgage and rent the property out to our parents? The rates are higher in this case so I'm not sure if it's worth it. However, this could count as an "income" for us when calculating our next mortgage later on. (it might be an advantage)
8. Lets say I took the mortgage with my Mum. In two years time, we could pay back a lump sum and remortgage the property. At that point, could my parents "take over" the mortgage? This would effectlively "clean" my status. Would I have tax advantage to get my own property (and better mortgage deal) compared to if I had my parents property on my name?
Many thanks for you answers in advance. :beer:
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