Some advice please

billybach

My situation is as follows: 

Married, 69, retired, wife 74, retired. 

Both drawing state pension and one other pension each.

I've a SIPP worth circa £160.000 that's yet to be moved to drawdown. £90,000 in drawdown already.

We own 2 houses, both with mortgages due to be repayed this year. Total £340.000

Plan was to sell one house, which would have paid off both mortgages and left cash for us. 

But plans change, and I need a different way forward.

I’ve looked at using my SIPP to pay the mortgage and also equity release, but they feel like expensive solutions in the long term. 

I'm now wondering if it might be possible for me to sell a part of one house to my son in order to raise the cash need for the mortgages. He would live there as well.

Is this doable, Wise or daft? 

All thoughts welcome

Many thanks

Linton

You can sell a part of the house to your son, but whether it is a good idea for either of you is another matter.  Does your son want to buy part of a house? Does he have the money?

What happens if your son wants to move elsewhere sometime in the future?  Your proposed  scheme does not appear to give him much benefit since he cant easily extract his money.  What if you need to sell but son doesn't want to move? Mixing families and money can give rise to major rows and breakdown in relationships.

Has you son owned property previously? If not buying part of a house would lose him first time buyer status for reduced stamp duty should he wish to buy his own home in the future.

You seem to be withholding key information about your circumstances. Your right of course but without further background it is difficult to make useful and relevent suggestions.

Brie

Would son be paying rent for the portion he doesn't own similar to a shared ownership scheme?  If not and you needed more money for care this might be come an issue - either with you or with the local authority if you need their help with care costs.

MX5huggy

Do you have any other children? Things are simpler when there is only one person expecting an inheritance. 

You can only get so much out of a pension tax efficiently each year. That limits your ability to get large sums. Have you done that for this tax year? 

You can’t get advice here only the random thoughts of the internet. But what is your aim to maximise income, get rid of the burden of rental properties. Help your son now rather than later.?