House Swap?

Posted on 9 March 2011 by Sue Crisp


My daughter owns a flat and my husband and I own a house. She now lives in the house with her family and has done for 3 years and we rent the flat out. She pays the mortgage on the flat and we pay the mortgage on the house we would like to just swop deeds could we do a concessionary purchase?

Sue,

As far as the sale price is concerned you should take your solicitor's advice. It is most certainly possible to sell at a concessionary amount, but you do not want to fall foul of any perceived Stamp Duty or inheritance tax dodge.

Anything you do will need the consent of your mortgage lenders and unless your mortgages are the same size they will need to be satisfied that each property is suitable security. Usually Lenders will base this type of lending on the property value and not the concessionary price. You do need to be aware that they will however not lend more than the concessional price.

It will most likely end up that you will both be asked to submit a new application and to "port" your existing mortgage to the new property.

Peter

Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.

You are currently offline. Some pages or content may fail to load.