Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • foxlycett
    • By foxlycett 11th Jan 19, 2:12 PM
    • 8Posts
    • 0Thanks
    foxlycett
    Complex In-Family House Purchase/ Transfer of Ownership (Scotland)
    • #1
    • 11th Jan 19, 2:12 PM
    Complex In-Family House Purchase/ Transfer of Ownership (Scotland) 11th Jan 19 at 2:12 PM
    Hello, I'm looking for advice from anyone who can help me make sense of this situation:

    - My dad and his (soon to be ex) wife are divorcing and selling their house, it's on the market for a fixed price.
    - My partner and I want to buy the house to AirB&B the main part of it, my Dad wants to remain on the property but living in a small cottage adjacent that belongs to the property.
    - We would be buying it using some of our own savings alongside my dad's 50% share - he wants his money/estate to be put under my name. We would therefore be seeking a mortgage in myself and my partner's name to cover the remaining cost of the property.

    What is the best plan of action for us to take to buy my dad's ex-wife out of the property, and transfer the ownership into our names + set up a mortgage? This is in Scotland, I know we have different property laws.

    TIA
Page 1
    • Pixie5740
    • By Pixie5740 11th Jan 19, 2:19 PM
    • 13,751 Posts
    • 19,863 Thanks
    Pixie5740
    • #2
    • 11th Jan 19, 2:19 PM
    • #2
    • 11th Jan 19, 2:19 PM
    Hello, I'm looking for advice from anyone who can help me make sense of this situation:

    - My dad and his (soon to be ex) wife are divorcing and selling their house, it's on the market for a fixed price.
    - My partner and I want to buy the house to AirB&B the main part of it, my Dad wants to remain on the property but living in a small cottage adjacent that belongs to the property.
    - We would be buying it using some of our own savings alongside my dad's 50% share - he wants his money/estate to be put under my name. We would therefore be seeking a mortgage in myself and my partner's name to cover the remaining cost of the property.

    What is the best plan of action for us to take to buy my dad's ex-wife out of the property, and transfer the ownership into our names + set up a mortgage? This is in Scotland, I know we have different property laws.

    TIA
    Originally posted by foxlycett
    Firstly I strongly suspect you will need commercial lending since your intention is to operate the main part of the building as an Air BnB business. Have you approached any mortgage brokers to find out if it's even possible?
    • foxlycett
    • By foxlycett 11th Jan 19, 2:27 PM
    • 8 Posts
    • 0 Thanks
    foxlycett
    • #3
    • 11th Jan 19, 2:27 PM
    • #3
    • 11th Jan 19, 2:27 PM
    We will also live in it for some of the year, does commercial lending still apply in that case?

    Essentially, would we need the ownership of it to be transferred from my dad and his ex-wife's names into our own names and then we re-mortgage it to buy his ex-wife out? I'm unsure as to what the correct process of completing a task like this would be.
    • davidmcn
    • By davidmcn 11th Jan 19, 4:37 PM
    • 10,433 Posts
    • 11,408 Thanks
    davidmcn
    • #4
    • 11th Jan 19, 4:37 PM
    • #4
    • 11th Jan 19, 4:37 PM
    We will also live in it for some of the year, does commercial lending still apply in that case?
    Originally posted by foxlycett
    I expect that would still be a complication, yes.

    As is the property including an annexe.

    As is some of the funds coming from a non-borrowing resident.

    One to ask a broker I think.
    • sheramber
    • By sheramber 11th Jan 19, 4:43 PM
    • 5,952 Posts
    • 4,499 Thanks
    sheramber
    • #5
    • 11th Jan 19, 4:43 PM
    • #5
    • 11th Jan 19, 4:43 PM
    Is there currently a mortgage on the property?
    • foxlycett
    • By foxlycett 12th Jan 19, 11:00 AM
    • 8 Posts
    • 0 Thanks
    foxlycett
    • #6
    • 12th Jan 19, 11:00 AM
    • #6
    • 12th Jan 19, 11:00 AM
    They have paid off the mortgage on the property.

    I will ask a broker, thank you. Mortgages aside, in terms of how we would process this task, would the best route be to complete a transfer of ownership from their names to ours, and then we mortgage the property in order to buy his ex-wife out?
    • Pixie5740
    • By Pixie5740 12th Jan 19, 11:10 AM
    • 13,751 Posts
    • 19,863 Thanks
    Pixie5740
    • #7
    • 12th Jan 19, 11:10 AM
    • #7
    • 12th Jan 19, 11:10 AM
    They have paid off the mortgage on the property.

    I will ask a broker, thank you. Mortgages aside, in terms of how we would process this task, would the best route be to complete a transfer of ownership from their names to ours, and then we mortgage the property in order to buy his ex-wife out?
    Originally posted by foxlycett
    No, you'd apply for a mortgage and buy it from them the same as if you were buying any other property.
    • foxlycett
    • By foxlycett 12th Jan 19, 11:16 AM
    • 8 Posts
    • 0 Thanks
    foxlycett
    • #8
    • 12th Jan 19, 11:16 AM
    • #8
    • 12th Jan 19, 11:16 AM
    Thanks for getting back to me. Problem is I would need to take out the mortgage using some of my dad's capital from the 50% share of the property. Does that make sense? The deposit we would put down on the property would be using his capital and our own combined. That's where it becomes confusing.
    • Pixie5740
    • By Pixie5740 12th Jan 19, 11:25 AM
    • 13,751 Posts
    • 19,863 Thanks
    Pixie5740
    • #9
    • 12th Jan 19, 11:25 AM
    • #9
    • 12th Jan 19, 11:25 AM
    Thanks for getting back to me. Problem is I would need to take out the mortgage using some of my dad's capital from the 50% share of the property. Does that make sense? The deposit we would put down on the property would be using his capital and our own combined. That's where it becomes confusing.
    Originally posted by foxlycett
    I know you want to use your dad's equity as a deposit. As an example, if the property was worth 100k you would apply for a 50k mortgage.
    • sheramber
    • By sheramber 12th Jan 19, 3:08 PM
    • 5,952 Posts
    • 4,499 Thanks
    sheramber
    Will your dad's ex wife be prepared to sign over the house to you with only a promise of money at a later date?
    • davidmcn
    • By davidmcn 12th Jan 19, 3:49 PM
    • 10,433 Posts
    • 11,408 Thanks
    davidmcn
    Will your dad's ex wife be prepared to sign over the house to you with only a promise of money at a later date?
    Originally posted by sheramber
    I don't think that's what's proposed. It's a purchase like any other, she'll only be signing it over in exchange for however much she's meant to be getting.
    • Pixie5740
    • By Pixie5740 12th Jan 19, 4:59 PM
    • 13,751 Posts
    • 19,863 Thanks
    Pixie5740
    I don't think that's what's proposed. It's a purchase like any other, she'll only be signing it over in exchange for however much she's meant to be getting.
    Originally posted by davidmcn
    I'm reading it that the OP thinks the way to proceed is to transfer the property into their and their partner's names before any money changes hand and then raise a mortgage to pay the dad's ex wife.
    • martindow
    • By martindow 13th Jan 19, 11:45 AM
    • 8,053 Posts
    • 4,658 Thanks
    martindow
    There are moves in Scotland to tighten up rules for short term letting. This article is from October


    https://www.heraldscotland.com/news/17004640.msps-back-tougher-rules-on-airbnb-landlords/


    The OP perhaps should be cautious about their plans until they know about any new requirements.
    • foxlycett
    • By foxlycett 19th Jan 19, 2:13 PM
    • 8 Posts
    • 0 Thanks
    foxlycett
    Yes I think that is the way to proceed, but I want to know if I'm right in thinking that or if there are alternative ways of doing things? (Sorry for delay, I can't seem to log in to the forums on my phone and have only just got back on my laptop)
    • Keep pedalling
    • By Keep pedalling 19th Jan 19, 2:40 PM
    • 6,102 Posts
    • 7,042 Thanks
    Keep pedalling
    Sorry if I read this wrong, but why does your father want to give his entire wealth away?
    • foxlycett
    • By foxlycett 19th Jan 19, 4:38 PM
    • 8 Posts
    • 0 Thanks
    foxlycett
    He is too old to mortgage the property but desperately wants to remain there for personal reasons. The deposit that is his will still be his, even if it is not officially. He has wanted this part of his wealth to be signed into his children's names in order to protect it if anything happened to him. And finally, he trusts me.
    • Pixie5740
    • By Pixie5740 19th Jan 19, 7:38 PM
    • 13,751 Posts
    • 19,863 Thanks
    Pixie5740
    He is too old to mortgage the property but desperately wants to remain there for personal reasons. The deposit that is his will still be his, even if it is not officially. He has wanted this part of his wealth to be signed into his children's names in order to protect it if anything happened to him. And finally, he trusts me.
    Originally posted by foxlycett
    Protect it from what?
    • diggingdude
    • By diggingdude 19th Jan 19, 7:42 PM
    • 673 Posts
    • 834 Thanks
    diggingdude
    Care home fees???
    Free TV Fund - February 973
    • Keep pedalling
    • By Keep pedalling 20th Jan 19, 12:14 PM
    • 6,102 Posts
    • 7,042 Thanks
    Keep pedalling
    He is too old to mortgage the property but desperately wants to remain there for personal reasons. The deposit that is his will still be his, even if it is not officially. He has wanted this part of his wealth to be signed into his children's names in order to protect it if anything happened to him. And finally, he trusts me.
    Originally posted by foxlycett
    Use that trust to reassure him that he does not need to give all his wealth away to achieve this. There is no logical reason to give it away other than the fear of care fees, but that would be treated as deprivation of assets so in all likelyhood would fail. Giving your wealth away adds risks to his security he would not otherwise have. What happens if you run into financial difficulty yourself through job loss, divorce or illness? What happens if you pre decease him?
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

14Posts Today

3,269Users online

Martin's Twitter