Taking Over Parents Mortgage

katie_78

Hi

To help me get a foot on the property ladder, my parents have recently suggested that I consider taking over the remainder of their mortgage (which is an amount I could borrow). The amount I would pay would mean I would own a third of the property. They have another property which they would live in and I'd live in the property I part-own. This would leave my parents mortgage free and me on the property ladder.

Is this do-able and what would the implcations be?

Thank you

Magentasue

I don't see why not. I knew someone in the 80s who could only afford half a flat and so their parents bought the other half. They did have an agreement drawn up covering under what circumstances it would be sold, who was responsible for x, y and z etc. They ended up with negative equity but waited and then sold with couple and parents taking half each.

poppy10_2

Yes, it's doable. Essentially they are gifting you 2/3 of the the value of the house, so they are being very generous. Count yourself lucky.

There will be inheritance tax issues if they both die in the next 7 years, but this si unlikely.

seven-day-weekend

Yes, I think this is a good way to get a foothold, and helps your parents too.

Go for it!