Re: no life insurance

[hizzy]

Hi All,

Briefly, my parents house was in two of my brothers names, sadly, one of my brothers passed away recently, he had no life insurance, my other brother cannot afford to keep up repayments.

The outstanding balance is 135,000, it is the family home, both my parents live there but cannot afford to repay the mortgage. What has been suggested, is that I can buy the house, which is worth about 280,000, for 135,000.

I personally do not want to own the house, I would prefer it to stay as the family home, just in case any of us fall on hard times. My query is this, will I be hit for any kind of tax.

Many thanks

Hizzy

 

[Jimbobp]

Hi Hizzy,
V Sorry for your loss. Did your brother look into changing his mortgage to an interest only one? If he changed the loan to this type of loan, he would pay in the region of €470 pm (after TRS allowance{not sure if he would be eligible for this} and presuming a 25 yr loan)Would that be too much for him & your parents to pay each month? If not, it would be a way of preserving the house whilst your parents are in it. He could always change it back to a capital+Interest loan if your parents moved on and rent out the house at that stage. Might be a better option than you buying a house you don't want.