Part selling/ part gifting property to our daughter.

[Deleted User]

Mutabilisrose said:

Deleted_User said:

Daughter could do a concessionary purchase where you gift the equity abd she takes a mortgage for the rest. 
Cant see her being able to raise enough on just her income to make it work though.  At a guess she'd get a maximum of around £90k ish on her own with no current debts.  Obviously this wouldn't give you enough to clear your mortgage so wouldn't be possible 

Do they not count that she has £250,000 of equity in the property and we are paying rent?

Nope.  Cant pay the mortgage with equity and you can stop paying rent altogether at any point.  You would only be lodgers after all so little formality.

There is a lender who allow you to live in the property after a concessionary purchase but they only take basic salary plus either 100% of monthly bonuses of evidenced over 6 monthe, or 50% of only 3 month evidence 

Mutabilisrose

Deleted_User said:

Mutabilisrose said:

Deleted_User said:

Daughter could do a concessionary purchase where you gift the equity abd she takes a mortgage for the rest. 
Cant see her being able to raise enough on just her income to make it work though.  At a guess she'd get a maximum of around £90k ish on her own with no current debts.  Obviously this wouldn't give you enough to clear your mortgage so wouldn't be possible 

Do they not count that she has £250,000 of equity in the property and we are paying rent?

Nope.  Cant pay the mortgage with equity and you can stop paying rent altogether at any point.  You would only be lodgers after all so little formality.

There is a lender who allow you to live in the property after a concessionary purchase but they only take basic salary plus either 100% of monthly bonuses of evidenced over 6 monthe, or 50% of only 3 month evidence 

I didn’t know that. Seems a bit strange. But she could manage to get a £90000 mortgage? Maybe I could work around that somehow. 

MWT

Mutabilisrose said:

MWT said:

Unless there is significant missing information, this is not only very unlikely to be possible, but extremely ill-advised as well.

On the numbers you've given, you really can't afford to be giving away the majority of the only significant asset you appear to own.

So unless your daughter has a large amount of cash in the bank this is a non-starter.

However there is plenty of help available on this and other sections of the site that can help you work out a sustainable way forwards given your current situation, but that isn't likely to include giving away a large percentage of your house...

Where could I ask about other options please? The only other things I saw were using one of the firms that but your home and you pay rent to live in it and losing our home when my money runs out. 

I would start in this group: https://forums.moneysavingexpert.com/categories/debt-free-wannabe

Also give strong consideration to down-sizing.

I get that you want to preserve value in your estate and provide for your daughter, but at the ages you are at, you still have some work to do to provide for your own future before you can start to worry about passing things on to the next generation.

Once your husband is 55+ you do have the option to consider equity release, but I would seriously look at down-sizing first, and you may need to be hard on yourselves when looking at just how far you need to downsize to make sure you can clear the mortgage and the loan as well as free up some cash.

Similarly, you mention that your husband is looking for work, unless of course there are personal reasons why it is not possible, you both may need to be looking for ways to generate income ...

Also consider when downsizing if you need to move to a different area with better work prospects perhaps...

[Deleted User]

There is a lender who takes established lodger income to boost affordability but they wouldn't allow you to remain in the property. 

Not sure about 90k, she'll need to plug her numbers in to lenders calculator and see what comes out.  90k is an educated guess

Mutabilisrose

Deleted_User said:

There is a lender who takes established lodger income to boost affordability but they wouldn't allow you to remain in the property. 

Not sure about 90k, she'll need to plug her numbers in to lenders calculator and see what comes out.  90k is an educated guess

So I am guessing that only applies if you own the whole property and gift it. You can’t live with them in it unless you pay rent. The rules must be different if you only part own it. 

You are correct just done a quick estimate online and it came back as up to £98000. 

Mutabilisrose

MWT said:

Mutabilisrose said:

MWT said:

Unless there is significant missing information, this is not only very unlikely to be possible, but extremely ill-advised as well.

On the numbers you've given, you really can't afford to be giving away the majority of the only significant asset you appear to own.

So unless your daughter has a large amount of cash in the bank this is a non-starter.

However there is plenty of help available on this and other sections of the site that can help you work out a sustainable way forwards given your current situation, but that isn't likely to include giving away a large percentage of your house...

Where could I ask about other options please? The only other things I saw were using one of the firms that but your home and you pay rent to live in it and losing our home when my money runs out. 

I would start in this group: https://forums.moneysavingexpert.com/categories/debt-free-wannabe

Also give strong consideration to down-sizing.

I get that you want to preserve value in your estate and provide for your daughter, but at the ages you are at, you still have some work to do to provide for your own future before you can start to worry about passing things on to the next generation.

Once your husband is 55+ you do have the option to consider equity release, but I would seriously look at down-sizing first, and you may need to be hard on yourselves when looking at just how far you need to downsize to make sure you can clear the mortgage and the loan as well as free up some cash.

Similarly, you mention that your husband is looking for work, unless of course there are personal reasons why it is not possible, you both may need to be looking for ways to generate income ...

Also consider when downsizing if you need to move to a different area with better work prospects perhaps...

Thanks for the links. 

I have looked at equity release and think of it as a bit of a last resort. I could downsize but the main problem is selling it. Not so easy in the north west. 

We are looking but as with so many people have not had any luck. 

Mojisola

Mutabilisrose said:

I am not bothered about us being "better off" my aim is to help my daughter and not lose what we wanted her to inherit, if I can.

And your daughter is happy to be given a huge sum while you spend the rest of your lives (maybe 40 years!) watching every penny?

Mutabilisrose

Mojisola said:

Mutabilisrose said:

I am not bothered about us being "better off" my aim is to help my daughter and not lose what we wanted her to inherit, if I can.

And your daughter is happy to be given a huge sum while you spend the rest of your lives (maybe 40 years!) watching every penny?

We, that is my husband and I are happy to do it. I realise many parents don’t think this way, but we do. We are used to watching every penny as we did this to afford it in the first place. My daughter knows how we feel about this. Of course she will be happy to have a good start, who wouldn’t but equally she would never expect it either. It was our choice. 

MWT

Mutabilisrose said:

Mojisola said:

Mutabilisrose said:

I am not bothered about us being "better off" my aim is to help my daughter and not lose what we wanted her to inherit, if I can.

And your daughter is happy to be given a huge sum while you spend the rest of your lives (maybe 40 years!) watching every penny?

We, that is my husband and I are happy to do it. I realise many parents don’t think this way, but we do. We are used to watching every penny as we did this to afford it in the first place. My daughter knows how we feel about this. Of course she will be happy to have a good start, who wouldn’t but equally she would never expect it either. It was our choice. 

Entirely up to you of course and not intended as a criticism of your ambitions, but I would strongly suggest that you secure your own income first so you can at least see your route to making it to state pension age, before you do anything with respect to the 'gift'.

The problem you have is that should you need some form of income support, you may rule yourselves out by engaging in what will be seen as a significant deprivation of assets.

Mutabilisrose

MWT said:

Mutabilisrose said:

Mojisola said:

Mutabilisrose said:

I am not bothered about us being "better off" my aim is to help my daughter and not lose what we wanted her to inherit, if I can.

And your daughter is happy to be given a huge sum while you spend the rest of your lives (maybe 40 years!) watching every penny?

We, that is my husband and I are happy to do it. I realise many parents don’t think this way, but we do. We are used to watching every penny as we did this to afford it in the first place. My daughter knows how we feel about this. Of course she will be happy to have a good start, who wouldn’t but equally she would never expect it either. It was our choice. 

Entirely up to you of course and not intended as a criticism of your ambitions, but I would strongly suggest that you secure your own income first so you can at least see your route to making it to state pension age, before you do anything with respect to the 'gift'.

The problem you have is that should you need some form of income support, you may rule yourselves out by engaging in what will be seen as a significant deprivation of assets.

Thanks for trying to help. I have a feeling we would never qualify as even with my pension of £980 a month as far as I know that rules us out. Hubby will also have a work pension eventually.  I was mainly looking at gifting it now because of the situation. Houses are hard to sell where I am and my pension pot will only last 12 months topping up my monthly pension to pay mortgage and bills. Maybe I will see if we can sell the house.