Jump to content

Possibly starting with £350k but need HELP!


Guest

Recommended Posts

Hello there,

 

I almost feel stuck and not to sure what to do but I will try and be as clear as possible. 

We are currently waiting for council to buy our property in london as they are currently renovating the local area (hoping to get about £350-£370k). When i say we that is my parents and i.

The property we currently live in is under both my parents name and at this present time they do not earn any money and i am covering all outgoings. They have approx 29000 left to pay on a mortgage. I am at the age of 24 and a mortgage shouldn't be a problem in regards to age but possibly a problem with my parents.

A little while back we went to the bank and just queried about remortgaging and the fact that my parents were of a certain age and not earning, it could effect the amount of money we can borrow and length of time. I had asked how much would it be if it was just me on the mortgage and the amount had increased quite a bit. With my parents and i we could get about £150k but just me alone could get around £190k and obviously the latter being the best case scenario (I assume).

 

(Took out a £55k Mortgage around 2003 i think)

 

What i would like to do in the ideal world is to borrow as much money as possible from a lender and buy a flat for around £400K or less to live in as i live in london and can not relocate to far from here, so with that i would try and use about £200k - £250k towards the home and mortgage the rest so i will still have money to pay for a deposit for 2 or 3 buy to lets? (Outside of london of course).

 

Now what i need help with is:

 

Can i get my parents to give me the money that they achieve from the current property without tax implications? If so how?

Can my parents gift me the money just like that?

Should i try and get a mortgage with my parents?

Could getting a mortgage with my parents effect me later on for what ever reason?

If i was to be able to get all the money for my own mortgage, would i still be able to pay no stamp duty up to 300k as i would be a first time buyer?

 

I have so many more questions that i just cant think of at this present time which is so annoying. Im sorry for the long winded message but i have created many many scenarios in my head and i am sure that i could be getting ahead of myself and just need some real guidance because i really dont have a clue about what steps i should take next.

 

Thank you for taking the time to read this and will greatly appreciate any advice.

 

Zeeno

 

 

 

 

 

 

 

 

Link to post

Hi there,

 

I think you'll just need to clarify who owns the house that you currently live in.  You won't be able to get a mortgage on it if you don't own it.  So are you suggesting that your parents either gift you the house or gift you the money?

If they gift you the house, that's fine.  If they gift you the money from their mortgage, they'll have to pay back the mortgage.  If you pay it back, that's tax evasion!

 

So not quite clear on the specifics.

Link to post
On 07/12/2017 at 12:09 PM, kieron garlic said:

Hi there,

 

I think you'll just need to clarify who owns the house that you currently live in.  You won't be able to get a mortgage on it if you don't own it.  So are you suggesting that your parents either gift you the house or gift you the money?

If they gift you the house, that's fine.  If they gift you the money from their mortgage, they'll have to pay back the mortgage.  If you pay it back, that's tax evasion!

 

So not quite clear on the specifics.

Hi Kieron, 

 

Thanks for replying,

 

Sorry to not make everything clear on the get go but our home is under both my parents name and i am not a owner of this property alongside them i am just simply covering the outgoings to keep a roof over our heads. In regards to the gifting, that is what i am not too sure about and what i mean by that is council will be buying back my parents home for lets say 350k. The current mortgage that is left is around 29k so if they were to clear the mortgage they will be left with 320k. So in order to be able to use this money to the best of our abilities by using some of the money pay down for a residential property and btl's, but as i had mentioned they do not work and i am the only person currently earning so does that mean i would have to get a mortgage with them which effects the amount of money we could borrow for a residential mortgage which would leave us with more capital to play with. Or is there a way that we can make use of this money if it came all to me somehow without breaking any laws or complications due to the fact, as far as i know i could borrow more money from a lender by myself.

Link to post

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...