My son wants to clear my mortgage for my ex's home

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tannery106

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…I’m paying Pepper a monthly payment for the past 12 years (for a house I haven’t lived in for 18 years, but is occupied by ex wife).
I am under no court instruction to make payments etc but I have an obligation to the mortgage as my name is on it etc so I have been paying 90% of the agreed payment with Pepper which is largely the interest).

I want to stop paying anything to Pepper and my youngest child (late 20’s) wants to take out a mortgage to buy the house outright for the remaining balance of the mortgage (~€180k).
Does anyone know what implications there might be? His mother would still live in the house (and would have to start making a financial contribution to him towards her living there etc).

Thanks
 
If you sell the house to your adult child at below the market value of the house, your adult child may have a CAT liability on the gift.

Or else some of their lifetime CAT allowance will be used up.

It depends on the amounts involved.

There may be other implications.

For example, your bank (Pepper?) would have to agree with your plan to sell the house.
 
A divorce may have separated you legally but I suspect it was silent of how it may affect the mortgage.

Currently both you and your ex-wife are on the deeds.
From the banks (Pepper) perspective you both are liable.

You say that you have been making payments of 90%.
which is largely the interest
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So who has made the remaining (ex-wife?)10%?
Or has it been parked under some agreement?


You mention an outstanding balance of 180K.
Is this the total sum outstanding?

You say that your son is willing to buy the house.
Pepper probably would be very happy but unless they are a cash buyer their new mortgage holder may not be as keen.

You all will need separate legal advice. (You/Ex-Wife/Son)
Especially as you say your ex-wife maybe continuing to reside there (right of residence vs licensee?)

As both names are on the deed you and your ex-wife would both need to consent to the sale.


Likely steps needed
Contact Pepper to see how much is outstanding
If your son can raise this figure would they be willing to sell?
 
Pepper will be delighted if you, your ex-wife, or your son redeems the mortgage.

They won't care about anything else such as the tax implications for you. They can't stop you redeeming the mortgage or charge you any penalty, if it's not a fixed rate mortgage.

Brendan
 
You should probably set out what you are trying to achieve by this transaction to figure out if it's the best way to do it.

For example, is it to save you interest?
Is it to provide a home for your ex?
Is it to provide a home for your son?

Brendan
 
It sounds very messy pulling your son into the mix here and tangling up finances. If he buys the house and in few years is unable to pay mortgage or needs to sell this house to buy another what happens?
Have you any dependents that are still in education or below 18 years of age?
Can you and ex just sell property to highest bidder and split equity appropriately and each sort out your own living conditions.
As a parent i would really try to discourage your son from going this route as long term it could become very complex. Appreciate that he is trying to help abd it gets you out of this situation but the parents really need to parent here. Is your ex partner/spouse working? Can they arrange mortgage to suit their own needs?
 
Brendan Burgess said:
I think that we are dealing with consenting adults.

Brendan
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Yes however that doesnt mean that the parents arent puttng pressure (msybe unintentionally) on the son.
Reading between the lines the dads main agenda is to extract himself from the mortgage and the mother appears to be unable or unwilling to take steps to sort out alternate accommodation.
This all sounds very messy and it's not clear if the mother would still have a stake in the house.
 
DannyBoyD said:
OP has not actually said they are divorced, only that they are living apart.

If they are divorced, then the family home disposition would 100% have been included as part of the settlement orders.
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He mentions that its his ex wife in the post however the whole setup is unclear regarding what the outcome of divorce was.
 
The very definition of the word ex-wife means they've been married and are now divorced. Unless he meant estranged wife but thats not what he stated. The whole post is lacking in clear information though.
 
dubdub123 said:
ex-wife means they've been married and are now divorced
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1. People often use the word when living apart - doesn't mean they are divorced or have a JS.

2. Any legal settlement would have included an order regarding the family home. And the fact that no such order exists, leads me to believe that they are not actually divorced /JS.

So there's no good advice that can be given until the OP confirms the status.
 
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