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Mortgage transferring HELP PLEASE!

(5 Posts)
ilikebaking Sun 10-May-15 13:12:24

Bit of a random question, hoping this is the right board and that someone can help me.
My parents bought a lovely house in my home town - it was meant to be a holiday home for them but they are now going abroad full time.
The house has 56k left on it's mortgage and is valued at around 110k.
Dad has mentioned to me that I could 'take over' the mortgage, to save selling it and keep it in the family etc.
The monthly payment is rather small and there are only 11 years left on the term.
Now this is somewhere I could happily live and can afford the bills etc and it appears cheap in terms of other bills.
How would this work? How would they sell it to me for the amount left on the mortgage?

tracyreader Tue 12-May-15 11:04:43

Do you know if your parents are planning to sell it to you, or are they thinking of you renting it, with the level of the rent being set by the mortgage payment?

Anyway, if they want to sell it to you for the amount left on the mortgage, they can, but I think there might be tax implications possibly as it could well count as a gift to you. Also, if you have siblings, or nieces/nephews could be family fall-out over inheritances. I'd consult a solicitor, assuming that your parents do want to sell the house to you.

Collaborate Tue 12-May-15 12:01:24

You'd have to take out a new mortgage.

There would be potential inheritance tax if either of them dies in the next 7 years (depends on the value of the remainder of their estate) and there would be an immediate charge to capital gains tax (HMRC would calculate is by assuming they sold it to you for the full £110k), so if the gain isn't swallowed by their annual exemptions, they'd have to find some money from somewhere.

ilikebaking Tue 12-May-15 16:35:53

I am an only child and Dad has offered to sell it at what is left on the mortgage. He has emailed today and said he would sell for 56k to me.
Their house is worth about 285k and they have a lot of savings.
What are annual exemptions from capital gains and things?

Collaborate Tue 12-May-15 23:04:16

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