Name added to parents house deeds and then take out mortgage

[w26]

My wife and I live with her parents (and have done for several years now). The house is in need of some work and we'd like to extend it etc
They are retired/nearing retirement.
The house is currently mortgage free.
We're looking into having my wifes name added to the housing deeds (everyone is agreed) and then securing a mortgage against it to pay for the work/pay off existing loan/credit card debt.
My wife no longer works (stay at home mum) so the mortgage would have to be secured against my earnings.....would this be a problem if I am not on the title deeds?......any other things we'd need to consider?

[dzug]

There could be a problem getting a mortgage if you are not a part owner of the property.

I've no doubt there are lenders who will do it but at the cost of a higher interest rate.

The potential (and it is only potential) for inheritance tax on the gift to your wife needs to be taken into account.

[w26]

Thanks dzug

Could I possibly be classed as guarantee on a mortgage in her name?

I'm assuming that the inheritance tax would only come into play if they were both to die within 7 years of my wife being added to the deeds? (as they are both going to be still on the deeds)

[lady_p_gold]

If you are going to be paying the mortgage then why not go on the Deeds too ? Otherwise you could find yourself in a tricky situation if things went wrong with your marriage, you would be liable for the mortgage .....

[zyxwvu]

I may be wrong or out of date but I thought that if you were living in the house and paying your share of the bills the inheritance tax laws were not so strict. If you've paid for improvements that part of the value could not be liable, surely.