How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Thomas Your Own Question

Thomas
Thomas, Solicitor
Category: UK Family Law
Satisfied Customers: 6522
Experience:  BA (Hons), PgDip, Practising Solicitor
28732269
Type Your UK Family Law Question Here...
Thomas is online now
A new question is answered every 9 seconds

I want to give my house to my son so that he can raise a mortgage

Resolved Question:

I want to give my house to my son so that he can raise a mortgage - is this possible
Submitted: 2 years ago.
Category: UK Family Law
Expert:  Thomas replied 2 years ago.
Hi
Thanks for your question/n .

For clarity and the avoidance of doubt, could you please respond to the following USING THE SAME NUMBERING:-
1. Is there a mortgage on the property
2. Can he demonstrate income
Kind regards.

Tom
Customer: replied 2 years ago.

1. There is no mortgage on my property


2. He is a very high earner in the city and has been for many years

Expert:  Thomas replied 2 years ago.
Hi

Thanks for your patience.


Whether or not he will get a mortgage will depend entirely on whether he meets the criteria of the individual lenders. I would suggest that you both look at mortgages and then attend a mortgage broker confirming what you wish to do and see if they would lender to him.

If they confirm a mortgage offer in principle on the basis of the property being transferred to him then you can certainly do this. If there is no present mortgage on the property then you can deal with the property as you wish, so you could certainly arrange a transfer to your son and marry this up with a mortgage in your son’s favour at the same time.

The lender will insist on a solicitor acting on your son’s behalf though because they have to have a professional check to ensure that they secure a first legal charge. They would also require a solicitor to act on their behalf if you transferred the property to your son first and then he got a mortgage so it makes sense to do it both at the same time to avoid a duplication of solicitor’s fees.

If you transfer the property to your son for less than market value then it will be a Potentially Exempt transfer for IHT purposes.

If you continue to live in the property then it will be a Gift with Reservation of Benefit for IHT purposes and if you still live at the property upon your passing then the whole of the property market value would be included in your estate for IHT purposes.


Please remember to RATE my answer OK SERVICE, GOOD SERVICE OR EXCELLENT SERVICE or above if you are satisfied that you have received the correct legal advice (even if it is not the answer you wanted to hear), otherwise I do not receive any credit for answering your question.

If you are not willing to rate my answer as OK SERVICE, GOOD SERVICE OR EXCELLENT SERVICE then allow me to assist further by replying asking what clarification you require rather than rating my answer at levels below.

If you wish for me to provide you with further guidance on any question you may have in the future then please submit a further question to the board requesting me either by my profile or by marking your question. “FAO Tom”.

Kind regards,


Tom
Customer: replied 2 years ago.

The situation is that my son is building a new house and needs funds to complete it - he cannot get a mortgage until the house is finished - he already has a mortgage offer on my house because initially he was going to buy it from me - however his solicitor is insisting that I give "vacant possession" and I cannot do that even tho at some time in the future I may well live in the new house with my son.

Expert:  Thomas replied 2 years ago.
Hi,

If the mortgage that he has obtained is a residential mortgage and he won't live there then the solicitor can't complete and is correct to ask for vacant possession.

The reason the solicitor is asking for this is because he is acting on behalf of the lender as well as your son. You need your son to get the solicitor to confirm what elements of what you are planning to do are in conflict with the conditions of the mortgage offer.

You then need to ask your solicitor to write to the lender to outline the elements of conflict and to request consent to proceed with those elements in mind. If they give consent then you can proceed (though you would probably have to sign the lender's deed of postponement confriming that you woudl not claim an interest ahead of their charge - straightforward).

If they don't give consent then you cannot proceed on the basis of the mortgage offer in hand and he woudl have to apply for a further mortgage with these conditions expressly stated.

Please remember to rate my answer.

Kind regards.

Tom
Customer: replied 2 years ago.

Thank you so much for your help it is making the situation much clearer for me. One other question - if I simply gave him the house would he then be able to raise a mortgage on it with me still living in it?


 


Incidentally the mortgage offer he already has is with the Halifax and they agreed the offer knowing full well that we would still be living here and they are not the ones making waves - it is his solicitor - or is it?

Expert:  Thomas replied 2 years ago.
Hi,

He would probably still be able to get a mortgage on it if he were to live there as well. If not then it would probably be a buy-to-let mortgage and it would depend on the lender. They may require you to enter an assured shorthold tenancy to proceed for a buy to let.

If the mortgage lender is aware that you will be living there then I woudl expect that all the solicitor would require to proceed would be for you to execute the lender's standard form Deed of Postponement.

Please rate my answer.

Kind regards

Tom

Customer: replied 2 years ago.

Dear XXXXX


Oh, that's wonderful!! That's all that was bothering me - the solicitor acting for my son sent a letter today asking us to confirm that it would be "vacant possession on completion" and we could not do that. So now I know the legal way to go about it we can reply to the solicitor. THANK YOU SO MUCH - what a wonderful service you provide!! You have really set my mind at rest - my husband and I are getting on and just wanted to have it all nice and easy!!


So, thanks again and I will leave feedback


Sylvia


ps can I now print this all off?

Expert:  Thomas replied 2 years ago.
Hi Sylvie,

No problem. Thank you for your kind note.

If you can print it off from your browser then do so.

Tom
Thomas, Solicitor
Category: UK Family Law
Satisfied Customers: 6522
Experience: BA (Hons), PgDip, Practising Solicitor
Thomas and 3 other UK Family Law Specialists are ready to help you

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • A quick response, a succinct and helpful answer in simple English. I believe I can now confront the counter party with confidence -- worth the 30 bucks! Rick Leeds, UK
< Last | Next >
  • A quick response, a succinct and helpful answer in simple English. I believe I can now confront the counter party with confidence -- worth the 30 bucks! Rick Leeds, UK
  • I did not know a French Law service existed and I was very impressed with the speed of reply --- very professional. Many thanks! Ms. Baker Alfafar, Spain
  • Thank you so much for your help. Your answers were really useful and came back so quickly. Great! Maggie USA
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin Kernersville, NC
 
 
 

Meet The Experts:

 
 
 
  • Jo C.

    Barrister

    Satisfied Customers:

    779
    Over 5 years in practice.
< Last | Next >
  • http://ww2.justanswer.com/uploads/RE/Remus2004/2012-4-22_93111_2bigstockPortraitOfConfidentFemaleL6943985.64x64.jpg Jo C.'s Avatar

    Jo C.

    Barrister

    Satisfied Customers:

    779
    Over 5 years in practice.
  • http://ww2.justanswer.com/uploads/hartsol/2009-08-11_134750_s629545647_1406287_2616.jpg jusleen's Avatar

    jusleen

    Family Lawyer

    Satisfied Customers:

    609
    Qualified Family Solicitor practising family law since 1999. Member of resolution.
  • http://ww2.justanswer.com/uploads/griffintigger/2009-2-20_19450_jo1.jpg Joanne B's Avatar

    Joanne B

    Family Solicitor

    Satisfied Customers:

    405
    Qualified 1999 with over 12 years experience in Family Law.
  • http://ww2.justanswer.com/uploads/TG/TGraham12/2012-7-17_81212_bigstockBusinessHandshake508163.64x64.jpg Thomas's Avatar

    Thomas

    Solicitor

    Satisfied Customers:

    400
    BA (Hons), PgDip, Practising Solicitor
  • http://ww2.justanswer.com/uploads/UK/UKfamsol/My face July 2011.64x64.jpg UKfamsol's Avatar

    UKfamsol

    Solicitor

    Satisfied Customers:

    302
    Woman solicitor, qualified in 1994, specialist in family law, accredited with Resolution
  • http://ww2.justanswer.com/uploads/JO/Josh2010/2012-4-29_19490_GettyImages80121770B.64x64.jpg Joshua's Avatar

    Joshua

    Lawyer

    Satisfied Customers:

    232
    LL.B (Hons), Higher Prof. Dip. Law & Practice
  • http://ww2.justanswer.com/uploads/CH/chathamchamber/2011-4-24_191833_1.64x64.jpg INC's Avatar

    INC

    Solicitor-Advocate

    Satisfied Customers:

    179
    LL.B, Pg.Dip, LL.M, M.B.A (Pending), Solicitor-Advocate. UK Practising Certificate issued by SRA., DIFC Courts Registered (Dubai)