Which Main Stream Lenders will give me a mortgage over 55 when my home is paid for

smallzoo2

Thanks

Can you explain what you mean by Stamp duty implications, capital gains tax implications, income tax

by income tax I presume you mean on any rental income ?..I dont see how it would affect our personal tax

by capital gains you mean on any sale of the house ?

by Stamp duty I presume you mean the £8k on purchase

poseidon1

smallzoo2 said:

Sorry for get crashing this thread

I am 67 earning the standard state pension plus I earn £31k as a part time job. My wife earns approx £22k

We own our 5 bed house outright and our monthly outgoing are around £1k a month

We have seen a house in our village for £160k. We are wondering realistically would I or we be able to get a mortgage to buy the house to rent out for a year and then my daughter would take over the mortgage in about a year 18months

If any of that makes sense would any lender look at us at all ?

cheers

It's potentially doable, whether realistic another thing.

Two options  - 

* Buy to let mortgage of 75% of purchase price assuming lender happy with combination of your income and potential rents.

* Remortgage or equity release of your own home.

However disadvantage compared to daughter buying herself with perhaps you gifting a deposit,  is stamp duty. On a purchase by you, stamp on £160k would be £8700.  If purchased by daughter (who presumeably owns no other property) she would pay only £700, so a big difference in overall outlay.

ACG

With it being a rental, you would likely have to pay the 3% surcharge on stamp duty. 
With the income tax, it might take you over the higher rate threshold? 
Capital gains tax when you come to sell. 

I cant advise on tax, im just suggesting you look into them.Better to know about them upfront. 

smallzoo2

Thanks all