Buying property for family member

benkil

Hi,

I am in the process of separating from my partner and dealing with the property we own. Unfortunately I am unable to get a mortgage in my sole name on our house due to its value but my auntie has offered to buy the house outright for cash for me and pay my ex-partner off at the same time.

My auntie already owns her own property outright so this would be classed as a 2nd home.

My auntie has said that she would expect the money back when I decide to move out of the house in around 4 years time. 

I am aware that she would need to pay 3% SDLT as it is a 2nd property. Is there’s a better way of her buying the house to avoid the SDLT and reduce the tax implications? Would gifting me the money be a better way of doing this?

MovingForwards

She could do a private mortgage, if she has the cash in the bank, that way you pay auntie each month and repay in full on sale or remortgage.

It's the same as a normal mortgage as it's registered on the title deeds, the terms of the mortgage are agreed between the two of you.

All handled by a solicitor, all legal and above board, have a search on the forum for "private mortgage" and you can read about them.

benkil

I’ve never heard of that. Thanks for your help