Fathers mortgage - bridging loan

[medievil2003]

Hi everyone,

 

Ok, i really need some advice and direction.

 

My dad is 66 years old and i am the only family left that he has here in the UK, rest are in his home country. I own a property with my wife and 3 year old baby and have been looking to move out of there and purchase our own house. My dad has offered to sell the house to us at us under market value and at the exact mortgage which he has to pay to the lender, i do not earn enough money (£30k per year) to be able to buy it so a friend of his said why doesn't he 'gift' the house to me and i get the money under a bridging loan then later on get a good deal from a high street bank.

 

There is a lot of sentimental aspects of this house which is why he just wouldn't want to sell it anyone and why he wants to gift it to us so then my son can grow up in it.

 

I was really just after some advice on this. His friend said we would have to wait 1 year or perhaps longer on an 8% rate before the banks would then see the gift as completed so i can get a better rate, finishing off the bridge.

 

He wants to retire and live in his home country.

 

Is this the best way to proceed?

 

Thank you

[citizenB]

Where is this property that your Father owns ? In the UK or his home country ?

 

 

A bridging loan is meant only as a short term loan at incredibly high rates. For inheritance tax purposes, I think your Father has to stay alive for a further 7 years after the gift has been made.

 

 

I am sure there will be others that will have advice based on more superior knowledge, but IMHO, what your friend is suggesting looks to be quite complicated and very risky.

[medievil2003]

Hi, thanks for your reply.

 

Yeah its here in the UK. He's just left in a terrible position because if i cannot get a mortgage on his place to pay his mortgage amount then he will have to sell. I am just trying to explore every option to keep this house within the family.

 

If there is no option then that's that unfortunately.