Can we remortgage our Parent's house

leukoshoopr

Registered User
Messages
57
Our parents own their own house and have always said it will be left to us (3 adults) when they go to the light.

With their permission, is it possible to remortgage the house to buy another house?
 
I have three children and they know that everything I own will be theirs when "I go to the light" but if they wanted to remortgage any of my property now they'd get short shrift from me. Very presumptious I'd have thought.
 
It would be easier if the parents were guarantor's on the loan for the child purchasing the home, this has been done in the past. But the parents should get independant legal advice before doing this. In addition the person getting the loan would have to meet all the banks criteria which have been tightened up.

The parent's can also remortgage if the banks allow it.
 
Judging from your other posts on this forum, would there not be a danger that you could not keep up the mortgage payments and therefore your parents would lose their home?
 
Personally, I think parent who do this are mad. As said, what if you can't make the payments and they lose the house. Or if you & they have a falling out & they may no longer wish to leave the house to you.

I heard of one situation where a mother told her 2 kids everything would be left equally between them But as she got older, one son gave her loads of help & support, visited regualrly, took her out & about, on holidays, for dinner etc. The other son did nothing bar drop in 2 or 3 times a years & the odd phone call. So she changed her will & guess which son got pretty much everything?

The only way I'd see it as a runner, is if you needed the moneyy to pay for nursing care or medical expenses for them.
 
Without knowing the age of your parents and their financial position, it is difficult to answer the question. However I am assuming, based on your other posts, that you would be looking to use the funds raised by remortgaging your parents house to buy a house for your sister. If that assumption is wrong, apologies.

Likewise, as another poster mentioned, you can't mortgage something you don't own and if your parents did get the mortgage, the tax position on gifts to your sister would need to be considered. I'm not saying there would be an issue, but it would need to be clarified and if so, dealt with.

As it stands, based on the limited information you've provided, your sister cannot afford a mortgage on her own, simple as that.

To me, the options therefore are limited and the only thing I can think of is for either some/all of your family to apply for a mortgage with your sister and buy a house jointly and let her live in it. If your sister's circumstances changed/improved down the line, she could always considering buying you out.

You would need to take legal advice on this, there have been plenty of posts on here in the past where people have bought property together and subsequently fallen out. The issue of first time buyer status would also need to be considered, if someone hasn't bought property before they would lose it.

One thing that I don't recall you mentioning is the status of your sister's childs father. Is he contributing in any way to support the child and if not, why not and should he? That could improve your sisters financial position
 
IMO this would be a very big mistake. If you need to remortgage your parents house to buy a home, you can't afford it, it's as simple as that. You have no idea what your parents needs will be as they get older.
 
If you want to be responsible for the your parents been homeless (no job is 100% safe) then go ahead.
 
What if your parent's need to go into a nursing home and the house needs to be sold to pay for their care?
 
Thank you all for the replies- yes it's still to do with my sister "Loneparent 72" and I know it would carry a lot of complications and legal issues. I think I'm beginning to realize it's not going to happen.

The father gives some money but not regular enough or guaranteed to last- it was a mutual agreement- and lives in Australia

What about this- Could she get her name on deeds of parent's house and apply for mortgage using the house as collateral
 
Surely she doesn't need to take on a mortgage, why doesn't she just rent a flat for a while? I don't understand the huge rush for her to buy a place. I rented in small bedsits/flats for 6 years with my son until I could afford my first house. House prices may come down a lot further anyway, so in a couple of years, she may be able to afford to buy.

If your sister uses your parents house as collateral, if she defaults on the payments, your parents would be in danger of losing their home.
 
Why doesn't your sister live in the house with your parents? If there is just the two of them, they must have more room.
 
Why doesn't your sister live in the house with your parents? If there is just the two of them, they must have more room.

The answer to that is a very long sad story that this forum doesn't need to hear-
Renting might be an answer though, for short term
 
Fair enough - I couldn't live with my parents either! Just thought it might be an option. I hope she finds something.
 
I think someone else may have suggested this before but maybe she could do a houseshare with another lone parent. Beside sharing the cost it has the added advantage of the fact that they can babysit for each other.

I know from experience that most childless people don't want to share a house with a young child.
 
I see on Daft.ie there is a teamup database. Perhaps she could advertise on this for someone to share with her.
 
Back
Top