Advice on my mum re-mortgaging home with me as Tenants in common

stevet123

Hi,

I currently live at home with my mum, she is 60 disabled and retired. There is no mortgage on the property and she owns it in full.

Since living with her i have invested quite alot in home improvements for myself and her including (Pod Point Homecharger, Downstairs Bathroom, Drive and garden improvements etc...)

As my mum is finding it harder and harder to walk up the stairs we are wanting to look at extended the property downstairs to add a bedroom for her. this is obviously an expensive job.

My question is: Can myself and my mum re-mortgage the house as Tenants in common to fund the extension?

The property is valued at 120k.
I am 27 years old fully employed and earn 37k per annum pre-tax

Thanks

Retired_Mortgage_Adviser

There are two steps what you want to do -

1. Change current ownership (sole by mother) to Tenants In Common (50:50 or another ratio).
and after that is done
2. Take out a mortgage against the property and use it to fund an extension, etc.

With an income of 37k and a 120k house, the mortgage should not be a problem.

However, step 1 involves (usually) your mum gifting you x% equity in the house. The conveyancing solicitor involved in the transfer of equity may require both parties to have had independent legal advice as there could be undue influence concerns.

There could be tax implications to the transaction as well.

You could start off with talking to a conveyancing solicitor about a transfer of equity, preferably one that charges a fixed fee.

stevet123 wrote: »

My question is: Can myself and my mum re-mortgage the house as Tenants in common to fund the extension?

stevet123

Thanks so much for the advice, i will seek out a conveyancing solicitor. i will keep updating this forum on progress