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One Mum, Two Adults, one House with Annex
felixns
Posts: 22 Forumite
Hi Everyone!
I'm in the early stages of buying a property with an Annex with my Mum and lovely girlfriend.
My mum is selling her place and it should raise around £565,000.
I own a flat worth around £168,000 = I owns around £40k of the place,
My Girlfriend owns a flat (which she rents out) worth around £175,000 = Owns around £40k of the place,
I have recently become self employed and am not earning huge amounts, but my GF has a well paid job.
So....
We are trying to weigh up the best option to move forward here are our options as I see them do we;
Inheritance; when my mum passes, my sister will want a cut 50% of the property we buy.
A,
Mum buys a House outright.
We pay her back, over time.
I have to sell my place as I cannot get a buy to let mortgage currently.
My GF carries on renting out her place.
B,
Mum buys a House outright.
We pay her back, over time.
I have to sell my place as I cannot get a buy to let mortgage currently. (I give the 40k to my mum)
My GF sells her place too.
She then uses the 40K for a buy to let mortgage on a place where she can make a decent profit each month, this goes towards paying back my mum.
C,
Mum sells here house & "gifts" 560k to my GF. My GF then gets another mortgage so that we can buy a house worth 650k, (she can afford to do this)
We pay Mum back the difference, over time.
I have to sell my place as I cannot get a buy to let mortgage currently. (I give the 40k to my mum)
D,
Mum buys a House outright.
We pay her back, over time.
I sell my place to my GF somehow so I can rent it out.
My GF carries on renting out her place.
There's probably a load more options I hadn't thought of yet!
Help!
Felix
I'm in the early stages of buying a property with an Annex with my Mum and lovely girlfriend.
My mum is selling her place and it should raise around £565,000.
I own a flat worth around £168,000 = I owns around £40k of the place,
My Girlfriend owns a flat (which she rents out) worth around £175,000 = Owns around £40k of the place,
I have recently become self employed and am not earning huge amounts, but my GF has a well paid job.
So....
We are trying to weigh up the best option to move forward here are our options as I see them do we;
Inheritance; when my mum passes, my sister will want a cut 50% of the property we buy.
A,
Mum buys a House outright.
We pay her back, over time.
I have to sell my place as I cannot get a buy to let mortgage currently.
My GF carries on renting out her place.
B,
Mum buys a House outright.
We pay her back, over time.
I have to sell my place as I cannot get a buy to let mortgage currently. (I give the 40k to my mum)
My GF sells her place too.
She then uses the 40K for a buy to let mortgage on a place where she can make a decent profit each month, this goes towards paying back my mum.
C,
Mum sells here house & "gifts" 560k to my GF. My GF then gets another mortgage so that we can buy a house worth 650k, (she can afford to do this)
We pay Mum back the difference, over time.
I have to sell my place as I cannot get a buy to let mortgage currently. (I give the 40k to my mum)
D,
Mum buys a House outright.
We pay her back, over time.
I sell my place to my GF somehow so I can rent it out.
My GF carries on renting out her place.
There's probably a load more options I hadn't thought of yet!
Help!
Felix
0
Comments
-
Why can't you get a BTL?0
-
What does your GF think?1
-
In option C, what's to stop your GF receiving the £560k, buying the £650k house in her name & then splitting up with you?7
-
I'm not sure, no idea how that could work, or my mum gives us both £325 each, and we both put down the deposit seprately. I guess there are taxes involved in gifting these amounts of money too?gettingtheresometime said:In option C, what's to stop your GF receiving the £560k, buying the £650k house in her name & then splitting up with you?0 -
How long have you been with your gf? Presumably long enough to know it's long term & trust her with your,/your mum's money?
Your mum "gifting" your gf sounds like a recipe for disaster.
4 -
Assuming that this really is the best long-term set-up for your living situation...
Why don't the three of you just buy the property in shares equal to your contribution? And sell all the other property you own. Do you not have enough money? It would seem you do. Why so obsessed with keeping another BTL?
Then, when your mother passes, you presumably inherit 50% of her estate, your sister inherits 50%, and you can buy your sister out with the money that you have saved over time, plus perhaps raising a mortgage at that stage.
It's this 'we pay her back over time' line you keep including that confuses me. It implies your mother is lending you money, but your various intentions around this critical point are not very well explained at all. Is that kind of the point of all this, from your perspective?1 -
How long has OP been with OP's GF?felixns said:
I'm not sure, no idea how that could work, or my mum gives us both £325 each, and we both put down the deposit seprately. I guess there are taxes involved in gifting these amounts of money too?gettingtheresometime said:In option C, what's to stop your GF receiving the £560k, buying the £650k house in her name & then splitting up with you?
What is in it for OP's Mum to give £300k or £600k to OP's GF?1
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