Family remortgage to buy my house

tillboy

Long story short am an ex NRAM customer now stuck with Heliodor with no way to remortage elsewhere currently.

Due to our financial situation am unable to remortgage and it seems there is no real guarantor option per se anymore even though i have a family member willing to do so.

Mortgage adviser has suggested asking the family member whether they would remortgage their property to pay off my mortgage instead (they are mortgage free) this has raised a lot of questions in my head around ownership etc. What would the implications be around tax, future CGT etc. effectively I would be paying the new (re-)mortgage (or an equivalent amount at the very least)

If this were to go ahead I would want to register the relatives interest with the land registry etc.

Any thoughts, wisdom, advice please?

davidmcn

No tax implications if all that is happening is (a) relative borrows money against their existing property and (b) gives or lends you the cash. Other than potentially Income Tax due by them if they're making a surplus from lending you the money.

foxy-stoat

If they will be buying your house off you and allow you to live there, they may need a regulated buy to let, if you will want to be on the deeds you will need to be named on the mortgage as well, could get complicated.

They would have to pay the additional SDLT on the purchase. They may have to pay CGT when you both sell in the future and maybe income tax on the interest that they will charge you.

They would be better off gifting you enough cash for you to remortgage with another lender to use as a deposit.