My son got a mortgage for our family home

Takmon

Jillro said:

12 years ago my son took out a mortgage for our family home , we were trying to get one but due to new job roles and bad credit rating we were really struggling to secure one . My son got it in his name but we have been responsible for the mortgage payments and all the utilities and building maintenance etc . The long term plan was that when my son was ready he would use the property as a deposit  for when he wanted to buy a home. This didnt really go to plan and the mortgage started to impact on him and his financial plans with his now young family , we put the house on the market and sold  . We are now concerned about how my son is able to transfer the money over to us once the house sale is finalized so that we can move on with a new home . I have read that he can’t transfer the money to us and there may be implications with tax etc , it will be around 42k , we don’t want this to impact on him and his financial situation any longer and just want to move on . At the time it felt like a great solution to secure our family home ( where my son still lived) however , I am full of quilt that we rode on his credit rating to secure the house. The house was initially my  in laws and we lived there for 3 years paying rent until one day they said we needed to move because they wanted to sell . My son is currently in full time employment with the Royal Navy but in a few months he will be leaving the Navy to start a business with his wife . Any advice ? 

Personally i don't see why you should get the money, you son did you a massive favour by getting a mortgage in his name for you and losing any first time buyer benefits when he buys his own property. So just let him keep the money and think of it as rent that was paid just like you did in the first 3 years. 
If you paid a deposit then it might be fair that you get that back but certainly no more. 

lookstraightahead

So the house is his but you are selling it? I'm really struggling to follow this one. Isn't it his money if he owns the house? 

AdrianC

lookstraightahead said:

So the house is his but you are selling it? I'm really struggling to follow this one. Isn't it his money if he owns the house? 

Yes.

He may wish to gift it to his parents, once he sells his house, of course.

HampshireH

Confused also.

You say he was going to use any equity as a deposit. But now you are keeping his equity? (The equity you seem to have originally gifted if I have read it right) 

This is lacking info but in its absence sounds like a family falling out as that's a large chunk to forgo if the original plan was to gift him the money for an onward purchase.

Speedbird676

So, just to clarify the facts:

1. Your son bought a house that you then lived in
2. Technically, you paid him rent equivalent to the value of the mortgage repayments
   
3. Your son lived in the house at the time and subsequently moved out
4. That house has now been sold
5. Your son has some equity from the sale of the house after paying off the mortgage
6. Some or all of that equity (£42k) is going to be transferred to you

And a couple questions, to help people advise you correctly:

1. How many of the twelve years did your son live in the property?
2. You said your son is in the navy. Did he join the navy before moving out and has he been continuously in the navy until the sale?