mortgages ?

[manic111]

There are a lot of issues, the main one is the discounted price. No lender would want to do that as they know that your Dad has an interest in the property. There is just no way of getting round that.

You can buy it off your Dad, but only at the market value, though you might be able to shave a few grand off it.

I'm not necessarily sure that this is right, but you will want evidence in writing that your dad does not have any ongoing interest in the property.

 

[Jokester]

If he's giving away his main home (rather than holiday home or other property), CGT won't be applicable is my understanding? The seven year rule would be in effect though in terms of possible future inheritance tax?

 

[Phantom Shadow]

As long as it has been his only home and have only used it as your home for the whole period of ownership then there will be no CGT to pay.

If it is sold to you, and he moves out of the property then there will be no inheritance tax. If it is gifted to you then it will be a potentially exempt transfer, falling within the 7 year rule.

 

[edscdk]

Wont work sorry to say.

It is not upto your dad to value the house and except 15k less it is upto the lender am afraid. You need a BTL mortgage, so you looking in the region of 30-40% deposit.

Why not as said above just buy for yourself at market value?

As for interest only mortgages, whats the point if you never going to own it. Oh and you will also pay tax on your profit if you rent out.

interest only will usually allow you to over pay, from the 3 mortgages I have had anyway. You can pull the over payments back out at any time without credit checks etc...

so if you run into problems and cannot pay firstly the required payment is less and you have (if you are not stupid) a pool of money that you can pull out.

so I have an interest only, I MUST pay £200 a month, I currently pay £1000 a month.. tomorrow I can obtain £100,000 without worrying about credit checks etc.. (because thats how much I have over paid).. should I be ill I only need to find 200 a month to pay..

 

[David _b]

As above yup, he has lived here for 35 years, i been here for 27 of them years. He is moving into another house of which he already owns half of (was grans house) and buying the other half from his sister with cash he has himself saved over many years of working

Meaning, i can indeed go and do what i want with this house afterall then, like let it out as i am no longer tied by BTL mortgages etc

 

[Phantom Shadow]

He is moving into another house of which he already owns half of

The specific wording from HMRC is "it's been your only home or main residence", so although it hasn't been his only home (I think half owning another home will still count against it being his only home) it has been his main residence.

So yes, free to do what you want with it unless it is funded by a standard mortgage or other loan secured against the house which states you aren't allowed to let it out. 'Borrowing' the money from your dad avoids all of this