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  • FIRST POST
    • rscozzy
    • By rscozzy 6th Aug 18, 9:01 PM
    • 4Posts
    • 0Thanks
    rscozzy
    Buying parents house
    • #1
    • 6th Aug 18, 9:01 PM
    Buying parents house 6th Aug 18 at 9:01 PM
    My parents owe £50000 on there mortgage house is worth about £90000 they have 1mth to pay remaining amount but donít have funds question is can I get a mortgage for the £50000 they owe and will I have to pay any inheritance tax
Page 1
    • middleclassbutpoor
    • By middleclassbutpoor 6th Aug 18, 9:16 PM
    • 202 Posts
    • 181 Thanks
    middleclassbutpoor
    • #2
    • 6th Aug 18, 9:16 PM
    • #2
    • 6th Aug 18, 9:16 PM
    Why do they need to find £50k in one month? Would possibly get better answers if we knew whether this was becasue of Interest Only term running out or whether its repossession etc.

    Inheritance tax is very unlikely to be an issue as the property value falls within the residential nil rate band. Again without understanding the wealth of the overall estate, its difficult to say 100%

    Would suggest you seek the help of a broker because there is so much that needs to be considered with this.
    • rscozzy
    • By rscozzy 6th Aug 18, 9:42 PM
    • 4 Posts
    • 0 Thanks
    rscozzy
    • #3
    • 6th Aug 18, 9:42 PM
    • #3
    • 6th Aug 18, 9:42 PM
    My dad has phoned bank of Ireland who he has his mortgage with and they are going to start court action at the end of September if they don!!!8217;t have the money to pay the debt the mortgage loan term ended in July and he still owed £50000
    • middleclassbutpoor
    • By middleclassbutpoor 6th Aug 18, 9:53 PM
    • 202 Posts
    • 181 Thanks
    middleclassbutpoor
    • #4
    • 6th Aug 18, 9:53 PM
    • #4
    • 6th Aug 18, 9:53 PM
    As I understood it, lenders were reluctant to repossess in these circumstances, albeit it is within their powers.

    The options are as follows;

    - Try and negotiate an extension
    - Try and remortgage
    - Try and buy yourself (albeit this may have wider consequences on your ability to borrow going forward)
    - Look at things like lifetime mortgages etc.

    Im sure a few of the brokers on here will have far greater experience of this situation and may be able to offer some further clarity to what you should be doing.

    if you are exploring other options with other lenders then it is probably important that BOI are updated which may delay legal proceedings. At the end of the day, if they want their money its better this way than repossession.
    • rscozzy
    • By rscozzy 6th Aug 18, 9:58 PM
    • 4 Posts
    • 0 Thanks
    rscozzy
    • #5
    • 6th Aug 18, 9:58 PM
    • #5
    • 6th Aug 18, 9:58 PM
    Thanks for help cheers
    • enthusiasticsaver
    • By enthusiasticsaver 6th Aug 18, 10:10 PM
    • 6,882 Posts
    • 14,817 Thanks
    enthusiasticsaver
    • #6
    • 6th Aug 18, 10:10 PM
    • #6
    • 6th Aug 18, 10:10 PM
    Do you already have a mortgage on another property?

    It would be complicated for you to borrow £50k as obviously you would need some security and the property is in your parents name presumably. They also would not be able to transfer the property into your name so you could raise a mortgage unless the mortgage was paid off.

    I would suggest you and your parents ring the Bank of Ireland and ask first of all for an extension as that is the cheapest and easiest option. Whether they agree to it depends on your parents ages and their financial circumstances.

    If they wont ask if the mortgage can be transferred into your name but you will need to see a solicitor to organise transferring the house over. It may also pose a problem if the house is worth much more than £50k as effectively you will be receiving a discount. If you own another property it is made even more complicated by way of the fact it would be a 2nd property and you may be liable to stamp duty.

    Another option is you raise £50k on your own property if you have enough equity and repay the mortgage using that. Again a solicitor would be needed to sort out the transfer over of the property into your name if that is what is to happen.
    Debt free and mortgage free and early retiree. Living the dream

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • rscozzy
    • By rscozzy 6th Aug 18, 10:22 PM
    • 4 Posts
    • 0 Thanks
    rscozzy
    • #7
    • 6th Aug 18, 10:22 PM
    • #7
    • 6th Aug 18, 10:22 PM
    I don!!!8217;t own any property ....just trying to find best options so parents don!!!8217;t loose there home
    Mum doesn!!!8217;t work and dad retires in September
    • tlc678910
    • By tlc678910 7th Aug 18, 2:55 AM
    • 628 Posts
    • 1,043 Thanks
    tlc678910
    • #8
    • 7th Aug 18, 2:55 AM
    • #8
    • 7th Aug 18, 2:55 AM
    If both your mum and dad won't be working in September will they be able to help you pay the mortgage? Do they have decent pensions? If they are on a low income they would get help from housing benefit if they were renting (when their savings/equity from the house is under the threshold) but they won't get help paying a mortgage.

    Are you happy to take on this mortgage, live at home and pay for this house? It will make it very tough for you to get a home of your own.

    Your parents could get in touch with the council and local housing associations to see if they can go on their waiting lists for a property. They might be able to afford a shared ownership property with the equity if they sell their house e.g. Buy 25% and pay rent on the rest. There is a special scheme shared ownership for older people they could look into. If their house is repossessed they will likely get less money than selling privately as there will be fees and charges added.

    Hope you can work something out.

    Tlc
    • Smellyonion
    • By Smellyonion 7th Aug 18, 5:42 AM
    • 102 Posts
    • 59 Thanks
    Smellyonion
    • #9
    • 7th Aug 18, 5:42 AM
    • #9
    • 7th Aug 18, 5:42 AM
    It's quite a small amount for a mortgage
    All they would have to do is sell it to you and transfer the ownership. You pay them 90k from your deposit and mortgage (I hope you have at least 5k for a 5% deposit and income of at least 22k), they pay off their mortgage. They live there and pay you rent.
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