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  • FIRST POST
    • E10NMA
    • By E10NMA 12th May 18, 3:54 PM
    • 3Posts
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    E10NMA
    Building own home with remortgage
    • #1
    • 12th May 18, 3:54 PM
    Building own home with remortgage 12th May 18 at 3:54 PM
    Ok so myself and wife are self employed doing well enough are finding it difficult to get a self build mortgage on land that was gifted to us by my father and mother. Planning passed etc. Just they wont lend against our income even though we are doing well.
    Looking at possible options:
    - Parents remortgage their house, build ours then sell it to us at a later stage for cost of build not market value
    - Buy my parents house from them (for the cost to build my house) they then build me my home with that money and we in the future transfer new house to myself and parents house back to them
    Does this sound crazy as Ive exausted every avenue to get a self build or bridging loan at this point
    Cheers
Page 1
    • Old Git
    • By Old Git 12th May 18, 5:30 PM
    • 4,315 Posts
    • 3,749 Thanks
    Old Git
    • #2
    • 12th May 18, 5:30 PM
    • #2
    • 12th May 18, 5:30 PM
    get your parents to lend you the money .The new build will be in your name .Then mortage the new build to pay back parents.
    "Do not regret growing older, it's a privilege denied to many"
    • E10NMA
    • By E10NMA 12th May 18, 5:57 PM
    • 3 Posts
    • 0 Thanks
    E10NMA
    • #3
    • 12th May 18, 5:57 PM
    • #3
    • 12th May 18, 5:57 PM
    Id love to only they wouldnt have that kind of money maybe them remortgaging is best option then buy it off them with mortgage, any possible tax issues you could see?
    • saverbuyer
    • By saverbuyer 12th May 18, 7:10 PM
    • 2,485 Posts
    • 1,425 Thanks
    saverbuyer
    • #4
    • 12th May 18, 7:10 PM
    • #4
    • 12th May 18, 7:10 PM
    Id love to only they wouldnt have that kind of money maybe them remortgaging is best option then buy it off them with mortgage, any possible tax issues you could see?
    Originally posted by E10NMA
    Couple of potential problems. Parents age limiting the remortgage term length. Parents income not meeting MMR requirements. Banks not lending based on the remortgage reason. How many year's accounts do you have? Have you talking to a good broker?
    • E10NMA
    • By E10NMA 12th May 18, 8:03 PM
    • 3 Posts
    • 0 Thanks
    E10NMA
    • #5
    • 12th May 18, 8:03 PM
    • #5
    • 12th May 18, 8:03 PM
    Thanks for your help yes all thought of which is why the potential of me buying my parents house and freeing up the money that way and 'technically' my parents build my house. I have a broker but in NI there are only a few lenders and they seem very iffy about self build mortgages for some reason possibly because its on our farmland along with the fact that we are self employed!
    • saverbuyer
    • By saverbuyer 12th May 18, 9:28 PM
    • 2,485 Posts
    • 1,425 Thanks
    saverbuyer
    • #6
    • 12th May 18, 9:28 PM
    • #6
    • 12th May 18, 9:28 PM
    Thanks for your help yes all thought of which is why the potential of me buying my parents house and freeing up the money that way and 'technically' my parents build my house. I have a broker but in NI there are only a few lenders and they seem very iffy about self build mortgages for some reason possibly because its on our farmland along with the fact that we are self employed!
    Originally posted by E10NMA
    How many years accounts? Depending on your parents age buying their house throws up potential problems.
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