Gifting money to parent to pay off mortgage

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Anony2022

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Myself, my fiance and our young family are living in my mums house with her for the last 5+ years. My mum has a certain amount left to pay off her mortgage and I was hoping to gift her a sum of money to help her pay it off as she has been diagnosed with cancer and will be out of work for the foreseeable and is almost at retirement age also. She in turn is going to transfer the deeds into my name when all is paid off - unless she can do this before it is all paid off ?
What is involved in this with legalities/ tax etc?
In order to gift her the money I would need to take out a large loan or a small mortgage of my own.
I really just need some advise as to how best go about this in the first instance.
Thanks
 
If she has a mortgage does she not have mortgage protection insurance? And would this not cover the outstanding balance on her cancer diagnosis?
 
NoRegretsCoyote said:
How much left on mortgage?

How much is the gift likely to be?

Will you be married before this is done legally?
Click to expand...
There is about €90k left on mortgage. I would be gifting the whole amount but would need to get a small mortgage in order to do this. And yes we are getting married later in this year so most likely we will be married when i get to do this. But i was hoping to take the mortgage out by myself..
 
So to get the mortgage the house will need to be in your name so you are more buying the house off your mother than gifting her the money to pay off the mortgage. You can't take out a mortgage on a house you are not going to own, a personal loan maybe but that size it's unlikely and would cost a fortune in interest. She is selling to you then at a preferential rate, what is the value of the house? Probably easier to put mortgage in names of both you and partner if getting married anyway, although watch out for the preferential bit being a gift to your future wife who is not related!

Only hiccup I presume is that your mother needs a right of residence and banks not too fond of them but if you've all been happily getting along for this length maybe she is ok without it. Wouldn't do it myself though, she needs her own legal advice.
 
You will need in due course good legal advice and possibly tax advice on all this, but the following strategy may suit:

1. Your mother agrees to gift you the house, with or without a right of residence.
2. In return, you agree to assume responsibility for her remaining mortgage repayments. You make the monthly repayments, and don't bother drawing down a mortgage of your own.
3. The mortgage stays in her name until discharged.
4. In the meantime she maintains any current mortgage protection insurance in case her illness dramatically worsens.

Best of luck with it.
 
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Anony2022 said:
In order to gift her the money I would need to take out a large loan or a small mortgage of my own.
Click to expand...

In your other thread you seem to be actively searching/bidding on properties. If you are not a cash buyer and you are relying on a mortgage to buy your own home then you need to be very careful that you don't jeopardize your loan approval.

As others have suggested, you should get some professional advice on how to proceed but if you still intend to move out and will be drawing down a mortgage then your best course of action might be to support your mother with much smaller monthly amounts until you have sorted out your own mortgage.
 

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If it's a genuine query, why no simply cover the mortgage payment for your mother.

That way there is no requirement to change anything. It's simply a monthly gift of €xx above the rent a room limit of circa €1150 which you should be paying her in rent
 
A life lease in your favour would be the best option, personal to you only with a sublet reasonable or unreasonably denied to refuse by your mother at a rent equal to her mortgage payment.
If your partner breaks up with you then you have control
If your mother dies then you have control
It would be crazy to ask her to sell the house to you or below market and equally crazy to gift her the money.
You always want to protect your potential and hers.
 
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