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blake

Mortgage Advice Required

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Hi there

I know this board is more to do with house prices but was wondeting whether anyone could help me out with a bit of mortgage/legal advice so that i can help out my in-laws. Basically my father-in-law needs to retire early to look after his wife who has a long term illness but he doesn't qualify for his company pension for another 3 years.

They have asked if i would be willing to buy a share of their house as they are scared stiff of these equity release schemes (and rightly so in my opinion!). They are looking for around £50k.

I need to know how i go about this - can i just approach a lender and request a mortgage and add myself to their deeds through a solicitor? Do i need to have a joint mortgage with the in-laws? Do i need to draw up an agreement with them to protect myself? Will i have to pay stamp duty - the loan would be below the threshold but the house is well over the threshold. Would i be liable for any taxes - i.e. CGT.

Lots of questions and would really appreciate some advice.

Thanks

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Basically my father-in-law needs to retire early to look after his wife who has a long term illness but he doesn't qualify for his company pension for another 3 years.

They have asked if i would be willing to buy a share of their house as they are scared stiff of these equity release schemes (and rightly so in my opinion!). They are looking for around £50k.

I need to know how i go about this - can i just approach a lender and request a mortgage and add myself to their deeds through a solicitor? Do i need to have a joint mortgage with the in-laws? Do i need to draw up an agreement with them to protect myself? Will i have to pay stamp duty - the loan would be below the threshold but the house is well over the threshold. Would i be liable for any taxes - i.e. CGT.

Equity release should aways be a last resort except - as ever - in exceptional circumstances.

Also, they may be too young for it. If they aren't they could consider monthly drawdown equity release where their loan is paid to them in say monthly amounts until they don't need any more.

Also, most ER lenders have a no negative equity guarantee.

If they are young they shouldn't do it.

You can get a mortgage to buy a share of their house and they will be on the deeds. A solicitor need not be involved except for the conveyancer. You can bring one in to talk about estates anyhow.

No stamp duty I believe as the purchase is under the minimum.

CGT - yes as it will not be your principal private residence UNLESS you live there then no CGT. But there won't be CGT anyway as prices as you know will fall 40% over the next several years and it will be years after that before they get back to where they started + inflation. Don't go to a lender direct, go to a mortgage broker who has lots of qualifications. www.thepfs.org/findanadviser

hth

fp

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Hi there

I know this board is more to do with house prices but was wondeting whether anyone could help me out with a bit of mortgage/legal advice so that i can help out my in-laws. Basically my father-in-law needs to retire early to look after his wife who has a long term illness but he doesn't qualify for his company pension for another 3 years.

They have asked if i would be willing to buy a share of their house as they are scared stiff of these equity release schemes (and rightly so in my opinion!). They are looking for around £50k.

I need to know how i go about this - can i just approach a lender and request a mortgage and add myself to their deeds through a solicitor? Do i need to have a joint mortgage with the in-laws? Do i need to draw up an agreement with them to protect myself? Will i have to pay stamp duty - the loan would be below the threshold but the house is well over the threshold. Would i be liable for any taxes - i.e. CGT.

Lots of questions and would really appreciate some advice.

Thanks

I switched my house into joint name with my girlfriend (ie gifted half the house) a while ago. In our case we took out a new joint mortgage, and obviously went though the solicitors to handle the land registry stuff etc. You specify in the documents the nature of the split of ownership, ie is it a specific percentage or a more vague joint arrangement (your solicitor is the one to explain this and the implications when you come to sell). We also made sure that our wills were in good order at the same time. If you're actually buying part of the property I would imagine that there are no tax implications up front, but if it's not your main residence I think you might get stung for tax on any profit on any future sale if prices go up. Again, speak to your solicitor to confirm this, rather than listening to idiots like me on message boards!

Hope that helps a little

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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