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Original poster

Mortgaging our owned home

131 replies

Missmummy88 · 24/02/2022 12:16

Any downsides I should be aware of putting a mortgage on our owned home? Current value about £550000 - fully owned by me ( gift from parents) with a long term partner 13 years & 3 kids and very happy. We want to get a small mortgage to add a 4th bedroom and new kitchen & redesign downstairs. This will allow each child to have their own room & make the house more liveable ( currently layout is awkward with kitchen & living area opposite ends of house having to walk betweeen 3 rooms. We want to do this now rather than when kids are older (hence mortgage rather than Saving) we both have jobs and currently save my wage & spend dh (although I work part time so circa 13,000 a year saved)

Is there anything I should be aware of? Any precautions I should take?

OP posts:
frgh · 24/02/2022 14:52

Therefore if OPs parents gave her the house as a gift, they made no profit hence no CGT applies.

the irony!

hellithurt · 24/02/2022 14:53

[quote frgh]@hellithurt what ridiculous or wrong information have I given? [/quote]
Tell me about the timescale thing please?

Pluvia · 24/02/2022 14:54

Take it outside, you two. No pointing speculating about things the OP is unlikely to reveal.

BaronessEllarawrosaurus · 24/02/2022 14:54

[quote frgh]@hellithurt what ridiculous or wrong information have I given? [/quote]
Are you getting confused with iht or deprivation of assets?

frgh · 24/02/2022 14:55

Tell me what ridiculous information Ive given?

PicaK · 24/02/2022 14:57

imagine he leaves you next year.
how much of the value of the house do you want him to have?
how would you pay him off if you dont want to sell your home?
think very carefully about what would be fair.

loveisagirlnameddaisy · 24/02/2022 14:58

You need professional advice, there are a few options here but all have ramifications.

Putting partner/husband on the deeds is not necessarily straightforward as there could be stamp duty to pay (it's treated as though he is purchasing some of the house).

hellithurt · 24/02/2022 14:59

@frgh

Tell me what ridiculous information Ive given?
That CGT is payable and "how come they didn't pay it", when OP is asking about a mortgage that she owns via a gift from her parents.
  1. You don't know that CGT wasn't paid
  2. You don't t know if it was a primary residence so no CGT payable
  3. If CGT was payable, it's a tax on the parents not the OP, so what's that got to do with her mortgage?
  4. It could've been a secondary residence that the CGT liability fell within the limits.

It's all irrelevant nonsense.

Particularly no 3, saying tax and mortgage are related when the tax is not the OPs liability is totally wrong.

hellithurt · 24/02/2022 15:00

@BaronessEllarawrosaurus I would presume she had since she's now talking about timescale!

Hence why I'm asking the relevance of timescale.

Ridingthegravytrain · 24/02/2022 15:01

I think the timescale thing is the 7 years the gifted has to survive after giving the gift before whatever is gifted is subject to inheritance tax. But after 7 years no IHT would be paid

Ridingthegravytrain · 24/02/2022 15:02

*gifter not gifted. though maybe they are that too!

frgh · 24/02/2022 15:02
    1. You don't know that CGT wasn't paid
  1. You don't t know if it was a primary residence so no CGT payable
  2. If CGT was payable, it's a tax on the parents not the OP, so what's that got to do with her mortgage?
  3. It could've been a secondary residence that the CGT liability fell within the limits.*

So I shouldn't assume anything because you are assuming differently 😆

frgh · 24/02/2022 15:03

Particularly no 3, saying tax and mortgage are related when the tax is not the OPs liability is totally wrong.

I never said that though. I said the questions of taxes was relevant in the context of borrowing money.

frgh · 24/02/2022 15:04

I think the timescale thing is the 7 years the gifted has to survive after giving the gift before whatever is gifted is subject to inheritance tax. But after 7 years no IHT would be paid

Which is why I asked how long ago it was gifted. I also wasn't the only poster who mentioned IHT

hellithurt · 24/02/2022 15:04

@frgh

Particularly no 3, saying tax and mortgage are related when the tax is not the OPs liability is totally wrong.

I never said that though. I said the questions of taxes was relevant in the context of borrowing money.

How?

Please do explain how a tax bill belonging to the OPs parents is relevant to her mortgage?

Again, what is the timescale you are talking about?

frgh · 24/02/2022 15:07

IHT is paid for by the people that inherit & there is a time scale on liability.

frgh · 24/02/2022 15:09

Please do explain how a tax bill belonging to the OPs parents is relevant to her mortgage?

Where did I say that? I just referred to taxes in general not specifically that the OP needs to pay CGT because she doesn't.

hellithurt · 24/02/2022 15:10

@frgh

IHT is paid for by the people that inherit & there is a time scale on liability.
But we are not talking about IHT are we? If you had said IHT it would have been relevant, but you specifically said CGT and also followed it up with the fact you had to pay it on disposal of a second property.

So why is timescale relevant to the CGT that you were specifically referring to?

frgh · 24/02/2022 15:13

@hellithurt my first post was literally

How long ago was it gifted?

which obviously was referring to IHT. I've not mentioned anything to do with timescales & CGT so i've not idea why you're conflating my posts.

and my 2nd post whilst it did assume CGT may have been payable clearly stated it wasn't for the OP to pay!

hellithurt · 24/02/2022 15:14

@frgh

Please do explain how a tax bill belonging to the OPs parents is relevant to her mortgage?

Where did I say that? I just referred to taxes in general not specifically that the OP needs to pay CGT because she doesn't.

backpedalling?

You got it wrong, you meant IHT, but you said CGT!

frgh · 24/02/2022 15:15

No I didn't get anything wrong

frgh · 24/02/2022 15:17

Also it's ironic that you posted inaccurate information about CGT & then accuse me of inaccuracy because you haven't read my posts clearly 😆

hellithurt · 24/02/2022 15:17

@frgh

No I didn't get anything wrong
Yeah you did! But I must get back to work now (IFA), don't talk to people about taxes you make yourself look stupid!
frgh · 24/02/2022 15:18

An IFA who says

"Therefore if OPs parents gave her the house as a gift, they made no profit hence no CGT applies."

😆😆😆 Feel free to quote my inaccuracies....

Rosehugger · 24/02/2022 15:23

I'd just get the mortgage in your name and keep DP out of it.