BOSI Negative equity idea!!

[3rivers]

Hope to get some advice or some ideas on this. My wife and I have a mortgage with Bank of Scotland,300k paying 997 p/m on 1.5% variable rate. The property is in negative equity. Guessing it's worth maybe €130 to 150k. We have 267k left to pay and we have never missed a payment
Joint income around €65,000.
€10,000 in savings with the ability to save more through the sale twice a year of shares in my company.
€10,000 car loan.
Twins aged 2.
Now the complicated bit!!
My parents are willing to sell their house to me for €60,000 even though guessing it's worth at least three times more than that if a few small jobs were done to it ( have to get it valued to know for sure) My question is if we could sell our house for say lowest price of 130k we would still owe 137k. If we could buy parents for 60 +20 to do up. That would mean we would owe 217 combined (137+80). Would BOSI give us a new mortgage or any other institutions deal with us. Or could we get a loan of €80k and pay off the remainder of mortgage to bosi. I hope this makes sense it does in my head anyway!!

 

[Brendan Burgess]

BoSI are no longer lending and would prefer if you simply paid off the loan.

Where are your parents going to live after they sell the house to you?

I suggest that you rent out your home. You are paying around €350 interest a month. You will probably get around €800 a month in rent, so this is a very profitable investment for you.

You could buy the property from your parents. A lender might give you a loan of €80k on a property worth €180k, even though you already have a loan over 4 times your income.

If you can't get a loan, you could buy the property from them for a deferred payment.

Alternatively, they could rent their property to you for a few years until you have reduced the negative equity in your home. It might be better anyway to do this, as you would not be subject to CAT on the "gift" of €120k.

Brendan

 

[3rivers]

Where are your parents going to live after they sell the house to you?

I suggest that you rent out your home. You are paying around €350 interest a month. You will probably get around €800 a month in rent, so this is a very profitable investment

Hi Brendan.
Firstly thanks for replying. You have given me a lot to think about. We are just looking into this at the moment as my father said he will retire from his line of work within the next two years. Hopefully we might be in a better position i.e price of our property increases to do as you suggested in the next year or two.