Removing parents from joint mortgage help 15 February at 1:18PM in Mortgages & endowments 2 replies 154 views

feebie1979

I’ve been a business partner with my parents since 2001.
During that time we took a joint mortgage, bought land, built them a house and then built an annexe for me on it. 

We’ve changed businesses a couple of times. 5 years ago was the last business change - at this point my parents retired and I became a sole trader. 

All business assets and liabilities are now in my name and we want to put the house completely in my name to avoid masses of inheritance tax in the future.

my current mortgage company won’t take them off the mortgage unless they are moving out of the house (which they’re not) 

can I remortgage just in my mane with another company? (Any advice who?) 
or do we have to look at them gifting their shares to me? 

Annisele

If your parents are going to remain in the house, then I don't see how putting it in your name will avoid "masses of inheritance tax in the future". If they gift you the house but stay in it, that would sound on the face of it like a "gift with reservation". It's possible that your strategy would increase your capital gains tax bill without doing anything to reduce your inheritance tax bill.

But do answer your question, I don't know of any mortgage lenders who will be happy to lend on a gifted property where the donors are remaining in the house.

I suspect you already have an accountant, given your various business changes - can you put this question to them? Even if it's not something they deal with themselves, they should be able to refer you to somebody who does.

MWT

feebie1979 said:

All business assets and liabilities are now in my name and we want to put the house completely in my name to avoid masses of inheritance tax in the future.

my current mortgage company won’t take them off the mortgage unless they are moving out of the house (which they’re not)

As above, this feels more like a question for your accountant...

The mortgage is less of a problem than dealing with the actual beneficial ownership of the property.

Did the land purchase and building result in ownership of the property in one of the businesses, or was it all always registered in the names of you and your parents?