Gifting a Property

M

MJC

Registered User
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I have a question concerning the gifting of a property, specifically being gifted a property - the family home - by my parents who wish to downsize to an apartment. In return, I'd buy the new property for parents.
My question is this.
Using the gifted family home as security would I be eligible for a more generous mortgage than I would otherwise hope to get to purchase the apartment?
Secondly, would it be a problem borrowing money for the mortgage when it wouldn't be my name but my parents' names going on the deeds. (They would not be contributing to the purchase).
In short then - would a bank lend money when your name won't be on the deeds, and when you have a property as security.
Thanks in advance.
 
Few things to consider here.

I don't think a bank will give you a mortgage for something that you do not own. The apartment in your parents name would not be a runner for them as in effect you would be taking out a non secured loan.

You could use the gifted family home for a mortgage to buy it as an investment and cross secure on both properties assuming the family home is worth a fair bit more than the apartment and you can demonstrate ability to pay the loan then yes you could get a higher than standard mortgage on the apartment but again you would have to be on the deeds.

If your house was worth enough that you could apply for a massive renovation loan ie big extension / conservatories etc etc etc and you used the cash to buy the apartment is about the only way I could see it happening but it would be some extension in todays property prices to get the value of an apartment out of it.
 
Could your parents not sell the house to you at the same price as the apartment will cost? You will probably have to pay stamp duty on the real value though, but if it's worth less than 635k and you're a first time buyer, it may not be so bad. There may also be gift tax implications but the threshold is high from parent to child at €478,155.

Budapest
 
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