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Remortgage with family member

(12 Posts)
Gagamarnie Tue 03-Sep-19 15:41:26

Advice please as I'm hitting a brick wall trying to get answers. Because of my age and income, I am having problems remortgaging my bungalow. My son lives with me permanently and will continue to do so. It has been suggested that I put his name on the remortgage, which would then be for about £150,000 if his earnings are taken into account. The bungalow is worth around £600,000. Do I have to transfer equity to him and, if so, does this involve a solicitor, and will either of us have to pay Stamp Duty? I think we will also have to register as tenants in common? I have tried phoning the HMRC helpline but this is always busy and I am cut off. Any advice from Gransnetters in the know would be much appreciated.

HildaW Tue 03-Sep-19 16:32:14

I think you need to get some sound legal advise as to your options. It would appear to be a potential minefield and you could lay yourself open for all sorts of problems with tax, inheritance and even if (Heaven forbid) you and son fell out in the future (not unheard of). Be prepared to pay a little (you can phone them up with a hypothetical question and ask for an estimate for the costs - I did that for an inheritance query and did not actually cost me anything) to a good solicitor who will give you sound advise that will help secure your future. Its what I would do.

EllanVannin Tue 03-Sep-19 16:43:28

See a solicitor before deciding anything.

M0nica Tue 03-Sep-19 17:37:04

A simple question. Why do you need to remortgage your bungalow? There may be other solutions - equity release for example.

If the mortgage is based on your DS's income then he will certainly have to be registered as one of the owners of the bungalow.

However beware. Putting his name on the mortgage and house ownership could end up with you homeless. He could force you to sell because he wants his share of the house or the house might have to be sold it if he became bankrupt so that his share of it could be used to pay his creditors. Do not say this could never happen, because that is what so many older parents relied on when they ended up homeless

Read the current thread eviction by daughter to get a feeling for the kind of mess you could end up in.

Do nothing, decide nothing, until you have spoken to both a specialist property solicitor and a financial advisor (on your own without your son present).

SisterAct Tue 03-Sep-19 18:26:07

As above get legal advice. When my mum was thinking of something similar - naming her children as part owners her home. The solicitor said never !! As he had seen it go wrong with close knit families when characters changed and divorce happened.

Charleygirl5 Tue 03-Sep-19 18:34:43

As others have said- seek legal advice. I thought that the first half an hour was free?

You are entering into a minefield.

Esspee Tue 03-Sep-19 18:45:51

The first half hour being free is a myth.
Some solicitors do this but they are under no obligation to do so.

Susan56 Tue 03-Sep-19 19:27:29

I echo M0nica’s post.Get legal advice and read the thread evicted by my daughter.

Floradora9 Tue 03-Sep-19 19:32:28

You would have to start the process from scratch as you cannot add him to your mortgage.

paddyann Tue 03-Sep-19 19:52:36

look at the new equity release where you can pay the interest on the loan monthly that way you'll never owe more than you borrowed.When'if you decide to sell you can pay back the loan from the sale

Davidhs Tue 03-Sep-19 20:44:44

You’re walking into a minefield here there are a great many things that could go wrong you must speak to a good solicitor but first you should decide why you want to remortgage. I dont like equity release so depending on your age and needs it may be better to downsize and use any spare cash for other things.

Gaynor62 Thu 05-Sep-19 18:53:29

There are so many pitfalls here! Definitely take legal advice, and not from the company recommended by the mortgage or equity release company. Ask around for recommendations, have a brief chat with the solicitor on the phone then choose someone you feel comfortable with to talk through the problem. There are lots of solutions, and the starting point is why you want to remortgage in the first place