andrew1977
Registered User
- Messages
- 142
Hi
Long winded saga but here i go, really would appreciate any help or pointers people could provide
My aunt (81 ) lives in old cottage next door to me (i live with parents at moment ) , she has agreed for me to apply for planning permission for extension to her house so i can live in ( classed as an extension but really will be a 3 bed dormer bungalow with seperate doors etc ,but for planning purposes will be as extension and we must show for planning that in later years both houses can be combined into one ).
Architect reckons cost of construction will be 135k max plus legal bills etc etc added in . then additional costs of fitting the house ,other expenses etc (rough total 160k ..ready to move into fully furnished )
With my own savings etc , i will be looking for a mortgage of approx 125k, what way will the bank look for security on giving me a mortgage ?
Speaking to the solicitor today , she mentioned "joint tenancy " ,whereby my auntie signs half her estate over to me (less than quarter an acre including the current house size ) ,therefore i am only liable at present for "gift tax" of half the value of the house.
Is the any better solution to avoiding the "gift tax" or reducing my tax bill to the revenue
Building the house is not the problem, the tax bill to boot may be the killer and drive me beyone my budget
Can i ask my aunt to guarantee the mortgage or will the bank refuse because of her age,she has already willed the house and estate to me in the event of her death.
Would really appreciate any help or advice anyone can offer to me
much appreciated
andrew
Long winded saga but here i go, really would appreciate any help or pointers people could provide
My aunt (81 ) lives in old cottage next door to me (i live with parents at moment ) , she has agreed for me to apply for planning permission for extension to her house so i can live in ( classed as an extension but really will be a 3 bed dormer bungalow with seperate doors etc ,but for planning purposes will be as extension and we must show for planning that in later years both houses can be combined into one ).
Architect reckons cost of construction will be 135k max plus legal bills etc etc added in . then additional costs of fitting the house ,other expenses etc (rough total 160k ..ready to move into fully furnished )
With my own savings etc , i will be looking for a mortgage of approx 125k, what way will the bank look for security on giving me a mortgage ?
Speaking to the solicitor today , she mentioned "joint tenancy " ,whereby my auntie signs half her estate over to me (less than quarter an acre including the current house size ) ,therefore i am only liable at present for "gift tax" of half the value of the house.
Is the any better solution to avoiding the "gift tax" or reducing my tax bill to the revenue
Building the house is not the problem, the tax bill to boot may be the killer and drive me beyone my budget
Can i ask my aunt to guarantee the mortgage or will the bank refuse because of her age,she has already willed the house and estate to me in the event of her death.
Would really appreciate any help or advice anyone can offer to me
much appreciated
andrew