Greetings Money Saversavers,
I hope someone can help me with a dilemma I am currently having...
My wife and I currently own a property as tenants in common. It has a value of £170,000. We have an outstanding mortgage of £140,000. We are looking to sell this property to purchase a new house with a value of £200,000.
My parents who are near retirement age are looking to purchase a second property as a buy to let investment. They currently own their own property that is almost paid off and have £30,000 for the new investment.
So what we are thinking of doing is keeping the current property in our name and allowing my parents to effectively run it as their buy to let. They give us the £30,000 and we purchase a new property for ourselves.
My parents will aggressively overpay and hope to pay off the mortgage within 10 years, the property will then hopefully provide them with a retirement income.
My question is what is the best way for us to do this, considering tax implications, mortgages and even future inheritance implications?
Is the best thing simply for us to take out another mortgage, purchase the new property and convert the old mortgage to buy to let?
Figures:
Current property value - £ 170,000
Outstanding mortgage - £140,000
New property value - £200,000
Deposit - £30,000
Joint annual income - £70,000
Any help would be great appreciated.
Many thanks,
Chris
I hope someone can help me with a dilemma I am currently having...
My wife and I currently own a property as tenants in common. It has a value of £170,000. We have an outstanding mortgage of £140,000. We are looking to sell this property to purchase a new house with a value of £200,000.
My parents who are near retirement age are looking to purchase a second property as a buy to let investment. They currently own their own property that is almost paid off and have £30,000 for the new investment.
So what we are thinking of doing is keeping the current property in our name and allowing my parents to effectively run it as their buy to let. They give us the £30,000 and we purchase a new property for ourselves.
My parents will aggressively overpay and hope to pay off the mortgage within 10 years, the property will then hopefully provide them with a retirement income.
My question is what is the best way for us to do this, considering tax implications, mortgages and even future inheritance implications?
Is the best thing simply for us to take out another mortgage, purchase the new property and convert the old mortgage to buy to let?
Figures:
Current property value - £ 170,000
Outstanding mortgage - £140,000
New property value - £200,000
Deposit - £30,000
Joint annual income - £70,000
Any help would be great appreciated.
Many thanks,
Chris
