can you buy a house from yourself?? - HotUKDeals
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can you buy a house from yourself??

barky Avatar
7y, 11m agoPosted 7 years, 11 months ago
Long story short-my mum passed away in november and left me her house. Now,obviously its a very bad time to be selling property so is it possible to take a buy to let mortgage on the house until the market picks up again even though I would then technically be buying the house from myself?

My own home is mortgage free and I wouldnt want the full value of the house mortgaged,just looking to get some cash for the next coupla years til the housing market improves.

Can this be done?
barky Avatar
7y, 11m agoPosted 7 years, 11 months ago
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#1
you can morgatge the house yeah its if you would get one in the current climate!! :thumbsup:
#2
I would get a mortgage to offset the rent payments you can expect, that way you won't pay tax on the rental income.

For example if you can rent for £500 a month and borrow at £100,000 for a interest charge of £500 /month you can receive the £500 monthly tax free (though you will incur tax on the interest received on the £100,000 in the bank)
#3
DazzyB
I would get a mortgage to offset the rent payments you can expect, that way you won't pay tax on the rental income.

For example if you can rent for £500 a month and borrow at £100,000 for a interest charge of £500 /month you can receive the £500 monthly tax free (though you will incur tax on the interest received on the £100,000 in the bank)


useful to know-thank you.
#4
TBH, I expect the housing market to be in a worse state than it is now within the next few years, so it may be worth selling now if you can find a willing buyer.

P.S sorry to hear about the loss of your mum.
#5
realfriendlyman


P.S sorry to hear about your loss.


better.
#6
bad loss dude, sorry to hear it but practically speaking;
whilst the base rate is low its not yet been passed on by the banks whose mortgages can often be 5%+, maybe consider just renting it out see if market picks up or mortgage rates drop any
#7
Technically you would be buying it from the mortgage lender i think.
#8
Actually you'd be remortgaging an unencumbered property (assuming that you inherited the property
mortgage-free).
I'm a mortgage underwriter and we do this sort of thing all of the time.
#9
Evil_monkey
Actually you'd be remortgaging an unencumbered property (assuming that you inherited the property
mortgage-free).
I'm a mortgage underwriter and we do this sort of thing all of the time.


thank you-yes its mortgage free-will look into this tomorrow.
#10
You're not actually buying the house from yourself, you're simply re-mortgaging a property that you own?

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