You are reading a single comment by @aggi and its replies.
Click here to read the full conversation.
-
Stamp duty is the obvious one. Also she's going to end up with money in the bank again as you pay interest (and possibly harder to keep track of).
Depending on what else she is receiving those "interest" payments may also be taxable.
Don't know if there are potential IHT implications, nothing springs immediately to mind but I wouldn't be surprised if there were.
Would also need to be solid on who is responsible for upkeep, etc. You'd really want it all in writing which may be stressful.
It's not a terrible idea on paper. Although something like putting the money in a fixed interest, restricted access saving account may be less stressful.
aggi
I'm a daily user on here but posting (even more) anonymously because the topic is a bit sensitive.
I'm about to come to the end of my first five year mortgage term. In the time, my dad has passed away and my mum has been left with a lump sum from his pension as he died before pensionable age (in lieu of a monthly pension if he had died at pensionable age).
She gets very stressed about having money in the bank and being defrauded. She also terrified of losing any money, so won't invest it.
I would like to suggest that she buys my house at the end of my mortgage term and I then pay her the interest that I would have been paying the bank.
What are the pitfalls of this? Are there any financial things (taxes or whatever) that I should be aware of?
Thanks in advance