OMG my father in law gave us an amazing offer today

[RosieLeaLovesTea]

OMG my father in law gave us an amazing offer today. He lives part time in HK and has made some property investments and sold some. Today we had a video call and he is offering to pay off our mortgage! Wow! What an amazing offer.

Our mortgage is not that high because we bought a doer upper 10 years ago and have been doing it up. It’s risen in value so we have a good amount of equity.

My DH have been talking about moving to a more expensive house in an area with better schools.

If we did this we could probably afford to rent our house out and make some decent money on it because the mortgage is low.

What he would give us would be approx 50% of new house value and we would she a bigger mortgage than now.

I am struggling a bit with the choice cause being mortgage free at 43 feels so freeing!

What would you do?

How old is your father in law? If he’s likely to die in the next 7 years I would think carefully about inheritance tax before I spent it all.

So I would probably take off the amount I would have to pay in IHT just Incase and use the rest to pay off as much of the mortgage as I could. I would always go mortgage free rather than moving to a bigger more expensive house.

@thisplaceisweird

Probably not show off about it on a site where many of the users are struggling to get through the next hour.

Don't be ridiculous. It doesn't have to all bedroom and gloom in case you "offend" someone.

@thisplaceisweird

Probably not show off about it on a site where many of the users are struggling to get through the next hour.

Agreed.

@thisplaceisweird

Probably not show off about it on a site where many of the users are struggling to get through the next hour.

Ooh what a lovely offer!.
If you've been looking at moving anyway i would sell your current home and move to the house and area you want.
Personally I wouldnt want to be a landlord!

What sort of man is your FIL? Is your DH an only child? Is this gift likely to come with emotional strings attached, or lead to family upset?

Has he offered to give you money or has he offered to pay off your mortgage? If the latter, it might be that he wants to know you're mortgage free?

So you’d have two properties for the price of one, of which one is being paid for via rent.

A safely net incase you decided to split.

Can’t go wrong really.

I'm a little bit confused. He's offered to pay off your mortgage (yay). But would he be ok with you not being mortgage free & using his money on a house where your mortgage will be higher than it is now? Because to me, they are very different things.

(& of course you can post here!)

Nice!

Probably not show off about it on a site where many of the users are struggling to get through the next hour.
Fucking hell, Negative Nancy - I think we can spare a little joy for someone else's good fortune...!

@GeodesicDome

What sort of man is your FIL? Is your DH an only child? Is this gift likely to come with emotional strings attached, or lead to family upset?

Jeeze. There's always one miseryguts, looking for a black cloud in a sunny blue sky.

@thisplaceisweird

Probably not show off about it on a site where many of the users are struggling to get through the next hour.

👏👏👏

I think that's a great thing for him to do OP.
I would much rather read about your FIL than the 100s of "my FIL is horrible" threads that are always on here.

Congrats OP. Enjoy your moment

Nice to read about something positive tbh. A lucky windfall! Ash him about your dulemma and get a feel if he is ok with that. I'd say it is a good idea for an investment

@thisplaceisweird

Probably not show off about it on a site where many of the users are struggling to get through the next hour.

Jealousy is such an ugly emotion.

I’d choose mortgage free op. It really is the best feeling in the world, you’ll never have to worry about it again.

This makes no sense, so you’ve a low mortgage as you bought a doer upper and he’s offering to pay it off, but that low amount would be fifty percent of th value of a new house? Plus he’s offering to pay your mortgage off and give you the money to do with as you please?

Thanks to those that have replied. Yes I would definitely need to check with him that he would be happy with either option either to pay off the mortgage or for us to move. I think he genuinely wants to see his son financially secure. Also help his grandchildren. We have 2 DCs.

...also yes, if you haven't already, you should talk to him about your options. He might be doing this so that he can free you of your debt. So taking on more might negate that kind thought.

So you'd need to be tactful about the gift and mention that this might well not be your forever house. so how would he feel if you moved.

ah, cross-posted

@thisplaceisweird

Probably not show off about it on a site where many of the users are struggling to get through the next hour.

I am one of those people, I can still find it within myself to be happy that someone else has had an amazing offer. I don't want to come on here and only ready about doom and gloom anyway.

I'm happy for you op, what an amazing offer.

I am poor as a door mouse but I don’t begrudge you posting here! What a fantastic offer from your FIL - but as per PP check if he is wanting you to pay off your mortgage or happy with your other plan. Often monetary gifts come with conditions (mine do from my father hence why I am still poor!)

Second hone ownership comes with all kinds of tax implications plus you'll have to pay full stamp duty. Worth looking into the sums.