property ownership

[twinkle1975]

Is it possible for a parent who owns a property & has a mortgage on the property to transfer ownership of said property to her daughter yet keep the motgage on in parents name?

[Ethel]

No.

The mortgage is secured on the property, and if the company allowed this sort of transfer, it would be very difficult to repossess should the mortgagee renege on the payments.

The mortgage company would not allow the daughter's name to be put on the Title and not the mortgage for the same reason.

[twinkle1975]

Thanks Ethal, the problem is I have had to move into sheltered housing to due to husbands ill health & whilst the property is in my name I am unable to claim any benifits we are both retired. My faughters can only get a 75% mortagage, our original intention was for my daughter to live at my property and renovate it then buy it herself or sell when market has picked up.
Does anybody know anyway around our prediciment

[Ethel]

If your daughter buys your house from you, you still won't be entitled to benefits if you make a capital gain from the property above the threshold.

You will have too much savings. If you sell the house to her under its true value you will be deemed to have been wasting your assets and still may not get benefits.

Does your daughter need to live at the house? If not, you could increase your income by renting it out. Or she could pay you rent - no doubt she will inherit it one day.

[twinkle1975]

Hi Again Ethel

My daughter does live in the property as she was renting another and her lease was due for renewal at the time I needed to leave mine so therefore she moved in. She does pay rent but I only ask her to pay the amount of my mortgage.
I only purchased the property a few years ago on a short term interest only mortgage which expires in 5 years in which time we will need to sell to recover the mortgage as at present there is no equity in the property so I would not have any capitol gains from it