Yes, you can indeed. If your parents are happy with this approach.Can I take the money they are giving me as inheritance off the price of the house
Are you getting cash, or a reduced price on purchasing their house?One further question, I'm married so would that affect parents giving me money if mortgage in both our names?
I've no experience of any of this so thank you for help.
Not if it's gifted to him first. He can then if he wishes transfer 50% to his wife without tax implications.If its a reduction in price of house there's a bigger CAT impact , because the gift to your wife (50%) is category C, which has a much lower threshold.
How would that work in practice? They need a mortgage, so the gift is a reduced selling price, not full house.Not if it's gifted to him first. He can then if he wishes transfer 50% to his wife without tax implications.
They got house valued at market value. They are giving some money to each of their children. I would like to buy the house.
Like yourself I don't particularly have the energy to think this through fully right now but I'd assume the sequence should be 1. House is transfered to son. 2. Son transfers 50% to spouse. 3. Son and spouse draw down mortgage 4. Son uses this to repay his parents the value of house minus the agreed gift element.How would that work in practice? They need a mortgage, so the gift is a reduced selling price, not full house.
Would they have to own the house in unequal shares?
Sorry, I might be missing something. Its been a long day!
But you can immediately pay the 100k off the mortgage.Still doable but would have liked reduced mortgage.
If it’s fixed ?But you can immediately pay the 100k off the mortgage.
Yes. Why not?If it’s fixed ?
Surely it would be better if the OP had a variable rate too start with as there would be no penalty involved.Yes. Why not?
If you've everything lined up, and your parents on board, you could be paying off the lump sum within a day or 2 of drawing down. Unless there's a shock event in the markets, the chances of any material break fee is minimal.I really appreciate all your input. It's all new to us. I thought fixed was the way to go with rates on the rise. Will look into variable or a mix of both.
If the fixed-rate period was long, e.g., 7 or 10 years, there could be a large-ish break fee – even if you pay off the lump sum quickly after drawdown. In my experience it can take some time for overpayments to be applied, during which time interbank interest rates could have moved a bit.If you've everything lined up, and your parents on board, you could be paying off the lump sum within a day or 2 of drawing down. Unless there's a shock event in the markets, the chances of any material break fee is minimal.
Even better take out a mortgage with €350k at a fixed rate and €100k at a variable rate.
Either of these two approaches is safer from a break-fee perspective. And the second approach should allow the OP have a loan-to-value ratio of less than 60%, which would make them eligible for lower mortgage interest rates.Alternatively, if your parents have €100k cash, they gift that to you now before the transaction.
Then you get a mortgage for €350k which will be <60% LTV instead of <80% LTV.
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