Hello,
my father (age 65) owns a small number of rental properties which generate an income but which will not be sufficient to pay both for his retirement and his large short term mortgage (10 year) on said properties. If the mortgage term was longer or interest only for instance, he would be able to fund his retirement from the rental income.
One option to solve this is to sell some of the properties to me and I will take a mortgage on said properties over a longer timeframe. However, there would be a large CGT tax and smaller stamp duty tax associated with this.
I have read in this forum that a joint mortgage, single deeds mortgage may be the answer where the deeds are kept in his name. In this case, a joint mortgage is taken out by my father and I over a longer time period and pays off the short term mortgage. The assumption here would be that I would ultimately inherit the property when my father dies without CGT implications.
Does anyone have any experience of this? I understand I would be taking a significant risk as I would be required to pay the mortgage on the property if my father died and passed the apartment to some-one else. At a minimum, I would require that my father writes a will whereby the property in question is bequeathed to me.
Many thanks,
Rusty
my father (age 65) owns a small number of rental properties which generate an income but which will not be sufficient to pay both for his retirement and his large short term mortgage (10 year) on said properties. If the mortgage term was longer or interest only for instance, he would be able to fund his retirement from the rental income.
One option to solve this is to sell some of the properties to me and I will take a mortgage on said properties over a longer timeframe. However, there would be a large CGT tax and smaller stamp duty tax associated with this.
I have read in this forum that a joint mortgage, single deeds mortgage may be the answer where the deeds are kept in his name. In this case, a joint mortgage is taken out by my father and I over a longer time period and pays off the short term mortgage. The assumption here would be that I would ultimately inherit the property when my father dies without CGT implications.
Does anyone have any experience of this? I understand I would be taking a significant risk as I would be required to pay the mortgage on the property if my father died and passed the apartment to some-one else. At a minimum, I would require that my father writes a will whereby the property in question is bequeathed to me.
Many thanks,
Rusty