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Original poster

OMG my father in law gave us an amazing offer today

132 replies

RosieLeaLovesTea · 28/11/2021 17:46

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?

OP posts:
Flamingolingo · 28/11/2021 18:05

I think you just need to be honest and open with him. You can’t really lose - in one scenario you would be mortgage free, in the other you would have two properties. If he’s had a portfolio himself he might be open to either option. Also - does he know how big your mortgage is already? As in, has he already decided on the size of the gift, or is he just thinking that would he a nice idea?

I think if you present it so that he has some kind of input you can’t really go wrong, but at the same time, a person offering to pay off someone else’s mortgage shouldn’t be ignoring the idea that they might then move further down the line.

buckeejit · 28/11/2021 18:05

That's a lovely offer!

I think you should tell him how grateful you are & say what you'd like to do & ask if he would be ok with that or have any other advice, (since he's done well with property), as effectively it wouldn't make you mortgage free but would give a lot more potential security for dc

WayneKorr · 28/11/2021 18:07

@thisplaceisweird

Probably not show off about it on a site where many of the users are struggling to get through the next hour.
She's not showing off, she is excited, the same as we'd all be I think that's a really lovely generous thing for him to do

Interested in this thread?

Then you might like threads about this subject:

General money
yourestandingonmyneck · 28/11/2021 18:09

@RosieLeaLovesTea

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.
Well as a property investor himself I can't see him having a problem with you doing that.

Hard to say without knowing the actual figures but id be inclined to keep your property to rent out if you can.

Ana27 · 28/11/2021 18:09

@PotteringAlong

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.

It sounds as if the tax situation might be quite complex given the international nature but even if it is uk only this shouldn’t be a worry. The tax on a gift in the last 7 years before death would be payable by the estate not the recipient of the gift.
3teens2cats · 28/11/2021 18:11

I think you need to be open and honest with him about your potential plans. He clearly wants to help you all and has the good fortune to be able to do so. If you explain that actually you were looking to move in the next couple of years he might offer to help with that instead of paying off the existing mortgage.

papayaorange · 28/11/2021 18:11

@thisplaceisweird

Probably not show off about it on a site where many of the users are struggling to get through the next hour.
Biscuit
Maryann1975 · 28/11/2021 18:16

@thisplaceisweird

Probably not show off about it on a site where many of the users are struggling to get through the next hour.
We fall in to this category, but I can still be happy for those who are mortgage free. Should they ever fall in To our situation (which I could never have predicted) being mortgage free will really help. But I really dislike the idea of having a second/third etc home that are rented out for massive profits, meaning that others are priced out of ever buying their own homes (I’ve seen it happen with friends who are renting and will never be able to save for deposits because they are paying so much out in rent).
Nanalisa60 · 28/11/2021 18:16

That’s so nice of your father!! So pleased for you.

Switch82 · 28/11/2021 18:19

Hey OP I think as follows - use it to pay off your mortgage then look for another doer upper in a better area where prices will continue to go up and up.

If you buy a second property there is various CGt/Stamp duty issues to take into account.

LoveGoldberg · 28/11/2021 18:19

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

Our house is going up for sale this week because we can’t afford the mortgage, we’re going from a 4 bed with the kids having a room each to renting a 2 bed where the sc will have our room on a weekend and school holidays and us sleep downstairs

CovidMakesThingsHard · 28/11/2021 18:20

@thisplaceisweird

Probably not show off about it on a site where many of the users are struggling to get through the next hour.
You should probably head over to the home improvement page and post on every thread about people building an extension. Also the buying/sell support threads for all those buying. Checkout Christmas too for all those ask for present advice and let them know too. I have shit aspects in health, facing cancer/terminal illnesses but I don’t piss on other people for having better health. I know some bits are shit some are good, everyone has problems.

OP what an amazing offer.

SequinnedShawl · 28/11/2021 18:24

@thisplaceisweird

Probably not show off about it on a site where many of the users are struggling to get through the next hour.
What keeps you so cheerful? Hmm
WakeUpLockie · 28/11/2021 18:24

FIL gave us a substantial amount (of his own father in law's money, so from DH's grandad on his death) and years later uses it to try and get us to do what he wants and bully us. Obviously we don't give in. But just beware that it does happen.

Campfirewood · 28/11/2021 18:24

Wow, what a great offer! I have no financial advice for you, but just wanted to wish you well. I once read a quote that stayed with me... "Your light doesn't dim when you ignite someone else's flame. It just makes the world shine that much brighter". Basically, I try and be happy for other people, regardless of my own circumstances, and it's a nice way to live, rather than living with jealously/resentment/stress and so on! Good for you Op!

Progress2019 · 28/11/2021 18:28

I’m delighted for you! A little bit green with envy, but not downright jealous like some posters.

Of course you can post here.It might be harder to tell real life friends, or maybe you’d rather not.

Congratulations 😀😀😀

Progress2019 · 28/11/2021 18:28

@Campfirewood

Wow, what a great offer! I have no financial advice for you, but just wanted to wish you well. I once read a quote that stayed with me... "Your light doesn't dim when you ignite someone else's flame. It just makes the world shine that much brighter". Basically, I try and be happy for other people, regardless of my own circumstances, and it's a nice way to live, rather than living with jealously/resentment/stress and so on! Good for you Op!
You couldn’t have put it better. Love that
IncompleteSenten · 28/11/2021 18:28

What a fantastic offer.

I would sell up and buy the new house
Being a landlord can be hard, stressful and expensive.

IncompleteSenten · 28/11/2021 18:29

@Campfirewood

Wow, what a great offer! I have no financial advice for you, but just wanted to wish you well. I once read a quote that stayed with me... "Your light doesn't dim when you ignite someone else's flame. It just makes the world shine that much brighter". Basically, I try and be happy for other people, regardless of my own circumstances, and it's a nice way to live, rather than living with jealously/resentment/stress and so on! Good for you Op!
I love that
girlmom21 · 28/11/2021 18:31

I'd take it with a massive pinch of salt. What kind of man is he normally like?

BabyLove22 · 28/11/2021 18:31

@thisplaceisweird

Probably not show off about it on a site where many of the users are struggling to get through the next hour.
🙌🏽
FreeBritnee · 28/11/2021 18:32

@thisplaceisweird

Probably not show off about it on a site where many of the users are struggling to get through the next hour.
🤭🤭
Nsky · 28/11/2021 18:33

You need a good agent to act for second home, mine is great, husband sorts maintence, her clients
I too ( early retirement, pushed into leaving job at 59), I own my own home, and another , rent peanuts🙁, part inheritance, have great agent.
Forms part of my now much needed income , and I ‘m sadly single.
Do what is right for you

DontBeCatty · 28/11/2021 18:34

@thisplaceisweird

Probably not show off about it on a site where many of the users are struggling to get through the next hour.
What an unpleasant comment. You sound bitter? I like hearing about other people’s good news. The OP wasn’t showing off she was asking advice.

OP, I’d be cautious but it’s sounds great. I’d make sure your husband double checks all the details and gets his Dad to confirm it’s a gift with NO conditions. You want to be sure he isn’t thinking he might come and live with you when he gets older.

cherrypiepie · 28/11/2021 18:34

That's lovely op.

You don't have to do anything right now so why not enjoy the house you have done up and wait and see what happens next.

Enjoy your early Christmas gift!