Mortgage Payment

gerri2011

A few years ago we took out a mortgage solely to build an extension on our house for my father to live. The mortgage will be paid by my father when he sells a property. My question is can he make the payment into our mortgage account when it is due?

csgohan4

He can pay it into your personal account, the mortgage account has nothing to do with him assuming he is not on the mortgage deeds. 
I assume he will paying you the money when he does sell? Some people think of putting charges on property to protect their assets. You never know what can happen in the future. 

davidmcn

gerri2011 said:

A few years ago we took out a mortgage solely to build an extension on our house for my father to live. The mortgage will be paid by my father when he sells a property. My question is can he make the payment into our mortgage account when it is due?

Yes, that will be possible. Not sure why it matters at this point though. When you repay a mortgage in full you usually ask for a redemption statement which gives you the exact amount due for a particular day of repayment, and the funds can be transferred from any account (it would usually be from a solicitor on a sale or remortgage).

gerri2011

Thanks for the replies. Just was unsure if I may be liable to pay tax on it as it is not a gift, it is to pay the mortgage we took out to build his annexe which is his home.

davidmcn

gerri2011 said:

Just was unsure if I may be liable to pay tax on it as it is not a gift, it is to pay the mortgage we took out to build his annexe which is his home.

You don't pay tax on gifts anyway (though they can potentially form part of the estate for Inheritance Tax purposes if the donor dies within 7 years) - it doesn't make a difference whether the payment goes directly into your mortgage account or via another one.