Can my mum sign her house over to me if she has a mortgage?

[akania]

Hi all

My mum has got herself in a bit of a financial state. She is 62 this year. About 5 years ago she took out an interest only mortgage on her property for £76,000. This will now mature next year and she has no other way of paying it off unless she sells her home. The house is worth £220,000.00 so she still has alot of equity in it. I moved in a few years back and have been paying the mortgage off for her every month as shes only a dinner lady and cant afford it. She has left her house to me in her will. I have launched a complaint via the fso into her lender as I don't belive she should have been granted it in the first place so you never know they may find in favor but if they don't we need a plan b. I have spoken to a building society about taking over the mortgage and they said that my mum would have to sign the house over to me in order for that to happen and I would then get a mortgage on the house and pay off the old one. Whilst not an ideal situation there isn't any alternative as I am not prepared for her to lose her home if I can help it. I earn around £36,000.00 per annum and have no debt but a less than perfect credit file even though it's improving. Before I go to the building society I just wondered if I could get some advice from you guys? Thanks and sorry for spelling and typos but in bed on iPhone lol

Thanks

[labman]

Re: Can my mum sign her house over to me if she has a mortgage?

The only other way I can think of which may work is putting you on the mortgage as a joint owner, obviously with her still having the credit history. If you then make payments for 6-12 months they may allow you to take over the mortgage.

It would be an uphill battle, but might be worth enquiring about.

Another I know is done frequently when the mortgage has been paid off is to transfer the deed into the name of offspring to hopefully avoid inheritance tax. I don't know whether there is any provision for this on a mortgaged property, but again might be worth looking into.

[akania]

Re: Can my mum sign her house over to me if she has a mortgage?

Thanks for the reply. I have been paying the mortgage for 4 years and so maybe that will go in my favour ? I'm just thinking because I launched a clmaint about them that they may not be so helpful? So are you saying that she can't transfer the house to me and I pay off the existing mortgage with a new one?

[labman]

Re: Can my mum sign her house over to me if she has a mortgage?

Not at all - by doing that, she's effectively selling the house to you at a rate vastly under market rates.

[akania]

Re: Can my mum sign her house over to me if she has a mortgage?

Sorry to be a pain but I read somewhere else that she can gift me her house? Is it illegal to sell the house to me got a nominal fee or gift it to me?

[labman]

Re: Can my mum sign her house over to me if she has a mortgage?

Sorry, I don't know. That was my first thought, but I then wondered if there is a mortgage outstanding, is she the owner, or is the building society the owner? Presumably she can't gift to you something she doesn't own. That's what took me onto the idea of you being on the deed with her paying the mortgage.

I think you probably someone who knows more about this sort of thing than me, as I'm only talking from tiny bits of knowledge and ideas. You need someone who can advise authoritatively.

Good luck!

[akania]

Re: Can my mum sign her house over to me if she has a mortgage?

Ok thanks for replying anyway

[akania]

Re: Can my mum sign her house over to me if she has a mortgage?

Back already lol! Didnt sleep last night as ive realised this is a very messy situation and my mothers having a hearttack about it.

Luckily (or not) i run my own business and things are tight at the mo as they are for every one but there is a good chance that whne things pick up i could clear this mortgage quickly however as this is due for repayment next year rthere isnt enough time for me to do that and i desperatly need to get this situation at a managable level.

Ive read elsewhere that this could involved CGT and IHT but we do live together and have been for 4 years and this will not change no matter what happens.

I know i probably will have to speak to a mortgage broker but im always concerned that they are gunning for the sale rather than giving good advice.

You guys have helped me out quite alot already with other issues and i do trust you opinions.

Look forward to a day where some one gives me that EUREKA moment

[Hurricane Puffrose]

Re: Can my mum sign her house over to me if she has a mortgage?

hey hun i dont know if this will help its all i could find...

please accept this website, its a UK based one... hope its useful

How to Transfer a House That Has a Mortgage | eHow.co.uk

[akania]

Re: Can my mum sign her house over to me if she has a mortgage?

Thanks everso much I have booked an appointment for an informal chat on Friday with the Cheltenham and Gloucster building society just to start the ball rolling regarding finding out more about this . I will let you know how I get on

[Hurricane Puffrose]

Re: Can my mum sign her house over to me if she has a mortgage?

the very very best of luck,
love and hugs to you and Mum