Property

[Halfpint77]

I recently got married and live in a property that I bought 3 years ago (£65000) with my wife. The Mortgage and bills etc are all in my name.

We are looking to move into a bigger property and my wife’s salary is not very good. My father in law would like me to sell my property to my wife so that way I am once again mortgage free and purchase the new property which would be more than £100,000 mortgage in my name as my salary is slightly better than hers. I am quite reluctant to do this as I am not sure what would happen, should my wife fall ill and unable to work, her Insurance would pay out for the property that I sold to her which would mean I would be responsible for paying the mortgage on the property we live in but it would not be a joint mortgage as her name would only be in the will should something happen to me.

Is this a good idea to do or not?

[Postdog]

I don't quite follow this question what you seem to be describing seems very convoluted.

You are married. Why not just sell your property on the open market, buy a place together using the bulk or all of what you make as a deposit and both of you will have a reasonable mortgage to contend with. If her salary isn't very good anyway how is she going to buy your house off you, and if she's with you what is she going to do with a spare house?

[LoftyLottie]

My thoughts are the same as Postdog and I also question why your father in law is getting involved in this.

[ethandron]

surely you'd be able to get a bigger mortgage if both salaries are taken into account, regardless of how small your wifes salary is.
it seems a very complicated way of doing things. your father in laws reasoning seems a bit skewed...

[ladybirder]

My advice is don't do it. If things went wrong you could come off very badly, ie with nothing. That is if we are understanding your question correctly. And your father-in-law's reason for getting involved in this is ......?

[Halfpint77]

Just to clarify:

I don't want to sell the property as I won't get back any equity.
Deeds would be in my wife's name on my old property.
Spare house would be rented out while we live in our new house.

Please help.

[ummmm]

Would your wife need to get a mortgage?

[redcrx]

But if she can get a mortgage on the old property why doesnt she get a mortgage with you instead on the new one?

[Postdog]

I don't think there is a solution here, well not one you want anyway.

You know if I were you I'd just make the best of what you have for now and revisit the possibilities in the future. Count your blessings because you have a house already, many can't even get to that stage.

Just an aside, I think the hand that controls the purse strings would find your proposal decidedly dodgy, way too dodgy to consider so it would be a non starter in their eyes.

[bednobs]

how will you be mortgage free if your wife can't get a mortgage to buy your current house? How can you sell her your house if she can't get a mortgage. And if she can get a mortgage, why not just get one together for a new place?
i am really not getting this as it seems complicated. Are you saying you would in effect be paying both mortgages yourself?

[redcrx]

plus you would need a buy to let mortgage on the house you want to rent. These require bigger deposits and have higher interest rates too.

[ubasses]

Where will the deposit for the new one come from?

[Halfpint77]

Deposit we already have for the new property to one side

[LoftyLottie]

So your wife is the joint owner of your existing house and wants to buy your half at say £33K to make her the sole owner which means she needs to borrow another £33.00K to pay you off. How will she finance this and, as has already been said, Buy to Let Mortgages are more expensive. Still don't understand this.

[Halfpint77]

LoftyLottie, No my wife is not joint owner of the property we live in at the moment. It is my property as I bought it before we even knew each other and it belongs solely to me. I know this is confusing. Help

[ubasses]

Where is the money coming from for your wife to buy the existing house? Will she have to get a mortgage and if as you indicate there is no equity in it where will her deposit come from.?

[ummmm]

And if she's on a low income how will she get a mortgage?

[craft1948]

I assume she'll get a buy-to-let mortgage..........

[Halfpint77]

I think what my father inlaw is saying is to just transfer the deeds over to my wife's name, so yes it is confusing as to how will she show the bank that she will keep the mortgage payments going.

[ubasses]

I think you need to sit down with your father in Law and ask him exactly what he is suggesting and how he thinks it will work and then you will be able to either tell him it will not work or seek further advice.

[Halfpint77]

Thank you everybody. I think the more I read your answers the more my gut feeling says no. I think my father in law does not realise that the Housing Market and the loops that you can manipulate is not how it was in his days and I will be seeking further advice. Thanks once again.