Hi
We are considering purchasing a BTL with our son to get him on the property ladder, with a joint mortgage (mum,dad and son) of £210k where son’s “share” of the mortgage will be under £40k. The £140k deposit will be a gift without reservation from parents.
Apart from mortgage payments, when we retirewe would like to use a pension lump sum to substantially clear a lump of the mortgage. Assuming we survive the 7 years from that date, will all the mortgage payments made by us, and the lump sum still be a gift without reservation? is it sensible to name him on the mortgage and property deeds.? When we “retreat” from contributing, the hope is he will have established a mortgage track record in his own right which would facilitate further borrowing.
In the future, should he sell up and buy another property, is it correct that if he has had a mortgage of under £40k that he would not be subject to 3% SDLT on the second purchase? If so, would that have to be a separate mortgage in his own right or do we have to demonstrate that his share was below the £40k threshold?
Is this workable? Your thoughts and expertise much appreciated!
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