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Need advice on if this is possible - joint ownership of house with parents

(9 Posts)
MonsterMunchMe Sun 26-Jan-14 13:30:11

I currently live in a house owned by my parents.

They own it outright, no debts against it, no mortgage etc they have the deeds.

Can we go to a solicitor and put my name on the deeds?

And after we do, could I take out a small mortgage, less than 50% of the house price, for home improvements/extension? Could I do this alone or will we all have to be on the mortgage? Will I/we need a deposit for this mortgage? The amount of money is too large for a personal loan so will need a mortgage.

TIA

mumblechum1 Sun 26-Jan-14 14:17:23

Your parents will need to be separately represented, as there's a potential conflict of interest but yes, if they are going into this with their eyes open and with separate representation the property can be put into joint names.

The mortgage will also be in joint names. I don't think you'd need a deposit, if there's no mortgage at present.

Your parents will be warned about the dangers, ie what happens if the mortgage isn't paid, the problems of selling the property in the future if you aren't in agreement to mention just two.

What is the reason for doing it this way, why can't your parents take a mortgage out themselves (or even do equity withdrawal) - that way there's no need to complicate it by having you on the deeds.

Are they concerned about nursing home fees and doing it for that reason? If so it may not work, I'm afraid.

Damnautocorrect Sun 26-Jan-14 14:21:49

There's a time limit on the nursing fees so if that's the reason I believe (although happy to be corrected) it ALL needs to be signed to you a number of years before the need for a care home is required. As I believe they can put a charge on it otherwise

MonsterMunchMe Sun 26-Jan-14 14:40:51

They are in there early 50s so not worried about nursing fees. They are quite well off and have insurances, and savings etc for that kind of thing.

They are going to do it as a sort of favour to me I suppose, to help me get on the housing ladder.

mumblechum1 Sun 26-Jan-14 15:10:25

Sorry, I'm confused. Would you continue to live with your parents, or would they be remortgaging to do the house up, then sell it and split the proceeds with you?

MonsterMunchMe Sun 26-Jan-14 15:21:15

Sorry.

My parents own house A and house B.

They live in house A with a mortgage that's roughly 1/5 of the house price.

I live in house B, it has no mortgage they own it outright and have the deeds.

I will continue to live in house B

glammanana Spain Sun 26-Jan-14 15:43:53

If I where in the position your parents are in I would just remortgage house B in my own name and have you pay rent to cover the mortgage repayments as you never know what the position will be in say 20/30 yrs time,also if you went down the route of having your name added what would happen if your partner (if you have one at this time or in future) wanted their name on the deeds it could cause problems later on,there will be no need for a deposit but a survey & valuation fee will apply.

MonsterMunchMe Sun 26-Jan-14 16:53:48

Thanks glam that does seem like the simplist option!

babybarrister Colombia Sun 26-Jan-14 21:37:17

Lots of neg tax implications with glam proposal - you need to take some good advice

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