Part selling/ part gifting property to our daughter.

ladysummerisle

Houses in your area may have been hard to sell in the past but the property market has gone crazy at the moment. Contact estate agents and try and get the ball rolling.. 

getmore4less

I don't thing you understand you can live there if you pay rent.

There is no such rule.

What will you be living off 
Gift/sale of the house won't raise enough to be paying rent for very long.

If it is a slow sell looks more like you are offloading a liability to your daughter not helping her.

Cheese1990

Where does your daughter live at the moment? As if she lives at home could she not support with bills etc to the tune of a mortgage and you gift her some of the equity in the property? That's if she is happy to take on the liability and lose the perks of being a ftb 

Thrugelmir

If you have concerns over your personal finances. You could ask your mortgage lender if you could switch onto an interest only  basis for a temporary period. Would provide you with a breathing space while you weigh up your options. 

Mutabilisrose

getmore4less said:

I don't thing you understand you can live there if you pay rent.

There is no such rule.

What will you be living off 
Gift/sale of the house won't raise enough to be paying rent for very long.

If it is a slow sell looks more like you are offloading a liability to your daughter not helping her.

I am not sure I understand the first bit. I have read on various sites that you can live in a property you have gifted.
"You should also consider where you are going to live after you have gifted the property. You may continue to live in your home once you have transferred it, but to avoid tax implications, you must pay rent to the person you have transferred it to at the market rate. If a tenancy agreement or similar arrangement is not in place, you will not retain any legal right to remain present in the property."

I have a pension of £980 a month and I am used to managing on a small amount. I home cook etc. The vast majority of our outgoings was the mortgage. I also still have a £30000 lump sum. And I am hoping that we will get work as well, but I can’t rely on that. Obviously it still may be a no goer but I was just on here to find out if anyone had done it and had any advice.

"Offloading a Liability" well I don’t see it that way and neither does she. It would depend on what we are advised. I think we probably need to see a solicitor/ property advisor next and then we can make some decisions.

Mutabilisrose

Cheese1990 said:

Where does your daughter live at the moment? As if she lives at home could she not support with bills etc to the tune of a mortgage and you gift her some of the equity in the property? That's if she is happy to take on the liability and lose the perks of being a ftb 

Do you mean we could add her to the mortgage? I think it has 7 years left. The only problem is I don’t think she will earn enough, unless we can remortgage with her on it. Not sure if you can do that. 

Mutabilisrose

Mutabilisrose said:

Cheese1990 said:

Where does your daughter live at the moment? As if she lives at home could she not support with bills etc to the tune of a mortgage and you gift her some of the equity in the property? That's if she is happy to take on the liability and lose the perks of being a ftb 

Do you mean we could add her to the mortgage? I think it has 7 years left. The only problem is I don’t think she will earn enough, unless we can remortgage with her on it. Not sure if you can do that. 

She is still at home

Mutabilisrose

Thrugelmir said:

If you have concerns over your personal finances. You could ask your mortgage lender if you could switch onto an interest only  basis for a temporary period. Would provide you with a breathing space while you weigh up your options. 

I will look at that. We are with Landmark though (being former Northern Rock customers) I am not sure if there is much flexibility with them.

getmore4less

Mutabilisrose said:

getmore4less said:

I don't thing you understand you can live there if you pay rent.

There is no such rule.

What will you be living off 
Gift/sale of the house won't raise enough to be paying rent for very long.

If it is a slow sell looks more like you are offloading a liability to your daughter not helping her.

I am not sure I understand the first bit. I have read on various sites that you can live in a property you have gifted.
"You should also consider where you are going to live after you have gifted the property. You may continue to live in your home once you have transferred it, but to avoid tax implications, you must pay rent to the person you have transferred it to at the market rate. If a tenancy agreement or similar arrangement is not in place, you will not retain any legal right to remain present in the property."
......

As I thought you don't understand what you have been reading about the tax implications

if all you have is a house  ~£280k equity and £30k in cash  between the two of you then there are no tax implications.

The gift could be a gift with reservation(GWR, rather than drop of as a PET in 7 years) it just remains in your estate for IHT.
As there is no IHT on your estate(it is too small) with one set of nil rate bands and you have two giving  up to £1m IHT free

As she would be buying £150k,  £350k gift some of that would not count as GWR as she is living in the places as well 

getmore4less

Mutabilisrose said:

Cheese1990 said:

Where does your daughter live at the moment? As if she lives at home could she not support with bills etc to the tune of a mortgage and you gift her some of the equity in the property? That's if she is happy to take on the liability and lose the perks of being a ftb 

Do you mean we could add her to the mortgage? I think it has 7 years left. The only problem is I don’t think she will earn enough, unless we can remortgage with her on it. Not sure if you can do that. 

Are you sure that is 7 years left,  for £110k  that would be over £1,300pm on repayment probably closer to £1,400

What rate and what are you paying.

if the plan is you sell/gift the house  and you both live there for a while but at some point you move on and she remains.
Where are you planning to live?
£70k(if any left) is that enough to buy a place,
Mortgage unlikely
Social housing unlikely as you gave away most your assets 
That leaves rentals.