Below Market Value with a Limited Company Mortgage to pay off equity release

[CJS]

Ok so not a straight forward one so apologies in advance! I have the option to purchase my parents house at below market value if I can pay off their equity release. I was looking to do something with my daughters (their grand daughters) and we were thinking of setting up a limited co and getting a ltd co mortgage -Would this be possible?

[Lilla D]

Technically do-able, but a lot will depend on the details - as usual... I'd say speak to a broker, who will go through the details with you.

There will likely be an early repayment charge to pay for settling your parents' mortgage and assuming that your parents will move out and you/your children won't move in, you could possibly get a BTL mortgage in the name of a Ltd company.

If the above assumptions are incorrect, i.e. either your parents wouldn't move out or you/your children would like to move in, then scrap everything I said above, a residential mortgage won't be possible in the name of a limited company.

Back to square one: please speak to a broker.