What's the best way to pay off my mortgage?

Dave_Haydon

Hi, I find myself in a position where a) the good news is that my mortgage of £46,000 can be paid off in one lump sum and b) the bad news is that my mother-in-law will pay if off when she comes to live with us! Now that you have all stopped laughing at my predicament, she is coming to stay and the mortgage is going. However, I'm not entirely happy about the simplicity in her just handing over £46k without incurring some sort of penalty, whether it be CGT or something else. So my question is... is there a simple way to deal with this? Thanks very much and I look forward to your comments. Dave

Cardinal-Red

You'd have to consult your mortgage agreement - there's likely to be some sort of 'exit fee' from what I understand.

Not sure why you think you need to worry about CGT - is there some other relevant info?

The only tax implication I can think of would possibly be Inhertiance Tax - but that would all depend on when the sad day comes, and the size of the mother in law's estate?

Paul_Herring

If she's giving you the £46k, the only potential tax liability is inheritance tax.

maninthestreet

Dave_Haydon wrote: »

So my question is... is there a simple way to deal with this? Thanks very much and I look forward to your comments. Dave

Get divorced??

worcester1

Use part of the £46K to extend the shed to a luxury living quarters and stick her in there. That way everyone is a winner, married saved and your mortgage nearly paid off.

Good Luck - cause you are going to need it Son.:rotfl: :rotfl: :rotfl:

Dave_Haydon

Thanks for the responses, even though one or two of them were a little unhelpful :rotfl: Having said that, the garage isn't a bad idea! In total, my Mothers estate will come to around £210k made up of £160k from the sale of the house and £50k from savings and bonds. Can I safely say that I won't have any problem in paying off the mortgage and that I still fall below any threshold for tax later on, or will somebody want something along the way? I'll probably be on here again very soon with another thread asking what you all think I should do with £3000 per month disposable income? I'm sorry for labouring on the tax issue but I've spent a lifetime dealing in IT and don't have a clue when it comes to this sort of thing, so once again, thanks for your help. If you have any ideas on the £3k p.m. I'd be glad to hear them. Dave