Posted on 23 September 2012 by K
I currently live abroad in Africa and own a house in the UK. I have a mortgage but would like to change / renew as it is not a good deal. I only earn £12,000 a year and don't work for a multi-national company, so can't get a new mortgage on it. I have a loan of 120,000 and the house is valued at 300,000. My parents in-law have a house with no mortgage, could I somehow add them to the mortgage in order to help me get a new mortgage? If I sell I don't want them to be subject to capital gains so would need to transfer property back to my name before selling - would that cause an issue? please advise? I use the house when I am back in UK and have a lodger from time to time. I may need to a buy to let going forward if I decide to stop using it as my base. Thanks in advance, K
As you are currently abroad the only way apart letting the property and remortgaging on to a Buy to Let (BTL) mortgage would be for you to sell the property to your parents in law. Depending on their own circumstances and suitability for a mortgage they could get a second home loan to redeem your current mortgage. If they do not live in the property there is every possibility that a Capital Gains Tax liability will arise, so they would need to take specialist tax advice prior to entering into the transaction.
If you decide to let the property there are a small number of lenders who may consider a remortgage, but they are all going to have concerns about your ability to cover any periods where there is not rental income coming in. You may also find that the interest rates on offer are no better than your current deal.
I think we can help you decide the best way forward and that you would benefit from talking to one of our independent mortgage consultants. Please call +44 (0)207 933 9600 and ask to speak to an adviser in our enquiry zone.
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