Anyone on here work/have good knowledge of Mortgages

Looking for some advice and not sure where to start. Thanks.

 

I don't personally but Stonehouse Financial Services at Map and Firth Financial Services at Barnsley BIC are both good

 

What do you want to know? I don’t work in the field but feel pretty confident I could help unless you have a very unusual situation. Also, check out this forum, every possible scenario you can think of, plus ones you couldn’t, have been discussed here: https://forums.moneysavingexpert.com/categories/mortgages-endowments

 

Me and my parents are considering selling our respective homes and using the money to buy a bigger home for us all together.
Me and the wife have a mortgage which has about half the value of our home left to pay. (Approx as prices may be about to fluctuate)
My mum and Dad own the home outright.
Logistically we believe it will be best to sell one house first, all squeeze in together for a bit then put that one up for sale and look for another.
I'm curious if anyone has any advice on if that is the right way to go.
We have kind of decided we would like to do it but not sure where to start.

 

I'd Google "joint and several liability" if I were you. That's often a problem when people with unequal resources buy a property together.

 

I would put both up for sale and start tentatively looking. The ideally you'd sell both of them the same day you have a bid accepted on one you like but in reality that doesn't happen so I can see why you'd want to sell one to essentially half your chain but personally I'd say if you list both you double your chances of selling one and also if they're both for sale earlier it means you aren't as desperate to sell quickly so don't have to accept lower prices.

 

I see no real advantage to not listing them both at the same time. Is there a reason you want to do one first and then the other? It’ll probably happen that way naturally anyway but as you don’t know which one will sell first, it may save time not waiting to sell one before even beginning on the next.

 

Yes needed to look into the legal aspects of that. My Mum and Dad basically want to gift us the money. I don't want them to feel like they aren't secure.

 

No not really, I didn't know what would be better in terms of moving/settling my mortgage and getting a new one. Don't really know how much extra (if any)I would need to borrow until we know what our homes are worth and can sell for. So we just thought if one was sold in advance it would be easier to work out. I suppose in reality one will naturally sell before the other though.

 

I’d just edited with pretty exactly your last line. A valuation should give you a ball park figure to work with and even by selling the first one, you still won’t know what the second one will fetch. I’d list both even if you plan on selling one at a time anyway as completing can take around 6 months so you’ll want to get started as soon as possible.

 

Take care of your parents Redstone. They are putting your wife and your welfare first
and sound to be two very nice caring people. Good luck with your project.

 

Questions to answer apart from your mortgage:

What if you fall out with the spouse - how do you separate without threatening the accommodation of your parents?

Are you an only child? If not, how do your siblings get their share of the estate from your parents if you're sitting in their biggest asset after they've died?

Do you put your parents names on the title deeds, which maintains/increases over time the value of their assets and may affect your continued occupation of the property if they end up in a care home?

How do you choose to own the house - jointly or in common? If you are all going on the deeds, will the amount each of you contributed be reflected in the % share you put towards the purchase price?

Might you save on removal costs if you all move from your respective homes and directly to the new one?

Etc...

If you have a mortgage already and have had no repayment issues, you may be best advised to contact your existing mortgagee about your next one

Sorry not spotted recent replies...

 

Hi Redstone,

I’m a mortgage adviser, I’ll drop you a message.

happy to chat through and I have a couple of Solicitor contacts who can cover off any additional questions for you, or indeed suggest points to consider.

 

What if you fall out with the spouse - how do you separate without threatening the accommodation of your parents?
You know it never really came up in the chat I plan to discuss with my parents alone
I would take care of them though.

Are you an only child? If not, how do your siblings get their share of the estate from your parents if you're sitting in their biggest asset after they've died?

I have one brother who would be fine with it. He lives some distance away and he and his wife are both in high paid jobs. He has previously said he has no interest in inheriting the house and appreciates I'm the one who helps our parents out and he can't due to distance.

Do you put your parents names on the title deeds, which maintains/increases over time the value of their assets and may affect your continued occupation of the property if they end up in a care home?
A big question, I think they should have names on for security. My dad thinks not for the reason you suggest. He was originally talking about signing his current home over for that reason.

How do you choose to own the house - jointly or in common? If you are all going on the deeds, will the amount each of you contributed be reflected in the % share you put towards the purchase price?
Similar to above my parents aren't really interested but I don't want them to feel they are powerless.
Might you save on removal costs if you all move from your respective homes and directly to the new one?

Etc...

If you have a mortgage already and have had no repayment issues, you may be best advised to contact your existing mortgagee about your next one

Sorry not spotted recent replies...

Thanks you're right all these things need thinking about. Its early days and may never happen but the feedback is very useful and much appreciated.

 

some excellent advice already posted -
if someone 'gifts' someone some money it is taxable or death duties have to paid if the person doing the gifting dies before a period of 7 years - I think that's right - maybe someone else can confirm.

I'd say you need legal advice before you start.

 

Signing over a property to you as you mention your father is thinking of doing may not preclude him having to pay for care should he go into a Home.
Again, not certain I've got this right.

 

I think you are right I read into it briefly but I'm not sure.

 

If someone signs over their property before they go into care a Charge can be put on that property so that when it's sold at some future date the money owed for the care is taken from the proceeds of the sale.

 

They are amazing people, the way they have stepped up and cared for my 2 children (both disabled) is breathtaking. I know it's a throwaway line used by people all the time but I really don't know how we would have coped without them. Every day i strive to be as caring and patient as a parent as they are.
This is kind of where this all came from, we are all so close and spend so much time together(last couple of months aside) that we may aswell just be together.