Buying for parents while they sell

MikeyPGT

Could you not buy their property so that they can buy the bungalow?  Gets round the issue of 'buy to let' ...

SWChezza

MeteredOut said:

user1977 said:

Sorry, I was assuming the borrowing was against the OP's existing property - is this going to be secured against the property being purchased instead?

Yes, that's what was stated. I'd assumed the OP's own property didn't have enough equity to release the funds via a remortgage there, hence a second mortgage on the new property.

OP, could you do a remortgage of your own property?

Possibly but still have some outstanding on existing mortgage. If try to remortgage is it same sort of terms and amount can borrow as if it was a new purchase? Or is it a certain % of the equity only?

MeteredOut

SWChezza said:

MeteredOut said:

user1977 said:

Sorry, I was assuming the borrowing was against the OP's existing property - is this going to be secured against the property being purchased instead?

Yes, that's what was stated. I'd assumed the OP's own property didn't have enough equity to release the funds via a remortgage there, hence a second mortgage on the new property.

OP, could you do a remortgage of your own property?

Possibly but still have some outstanding on existing mortgage. If try to remortgage is it same sort of terms and amount can borrow as if it was a new purchase? Or is it a certain % of the equity only?

It'll be based on affordability and LTV. The fact that you're asking what are pretty basic questions further makes me think you should not be going ahead with this - there's a lot of stuff to consider. I've raised a few (council tax, CGT, death & inheritance, stamp duty) but there are bound to be other complexities.

You said you have confirmed you can get another mortgage. Who was that with and on what basis? Do you therefore have an AIP in place?

Have the sellers of the house your parents are looking to buy downright refused to accept the offer and wait for their house to sell, particularly as you are so sure it will sell quickly. I assume it is on the market and accepting viewings?

SWChezza

MeteredOut said:

SWChezza said:

MeteredOut said:

user1977 said:

Sorry, I was assuming the borrowing was against the OP's existing property - is this going to be secured against the property being purchased instead?

Yes, that's what was stated. I'd assumed the OP's own property didn't have enough equity to release the funds via a remortgage there, hence a second mortgage on the new property.

OP, could you do a remortgage of your own property?

Possibly but still have some outstanding on existing mortgage. If try to remortgage is it same sort of terms and amount can borrow as if it was a new purchase? Or is it a certain % of the equity only?

It'll be based on affordability and LTV. The fact that you're asking what are pretty basic questions further makes me think you should not be going ahead with this - there's a lot of stuff to consider. I've raised a few (council tax, CGT, death & inheritance, stamp duty) but there are bound to be other complexities.

You said you have confirmed you can get another mortgage. Who was that with and on what basis? Do you therefore have an AIP in place?

Have the sellers of the house your parents are looking to buy downright refused to accept the offer and wait for their house to sell, particularly as you are so sure it will sell quickly. I assume it is on the market and accepting viewings?

Appreciate your concerns but am asking some of these things for confirmation that my thinking is right and to see if there are alternatives people might know of that we haven't thought about. Also know it's risky and might end up costly but parents need to move for health reasons and options are limited to get done quickly.