Specific question Re: property selling and moving.

Right, I have property and wish to move on...my son wants to get his foot on ladder.
Would I be able to sell this house to him, providing he can get mortgage, so he can move in again, as it will be HIS house, no estate agent fee's etc.
Would I need to provide him with the info pack etc?

We have seen a property but not been to see yet.

So am I right in thinking, he has to complete his side, we pay what's left on the house off our own mortgage.
This will release the equity to enable us to put deposit on new house and then re-mortgage for new property?
It works out on paper but is it practicle to do this? Are you allowed?

He's lad just starting out, we are couple with young children, wishing for a better standard for our kids? Education/ new friends for them and they are young enough to make a new start elsewhere.....away from this council estate cancer that's going on round here.

Was thinking if elder son can get started on the property ladder, it will give him the equity to move on when he see's something better?

My advice would be very careful when selling to a member of your family.

If you sell it to your son at a discount, that's all very well and good, but will you have enough money in the sale to move on yourself? If your downsizing that won't be an issue.

The bank would still be looking for a significant deposit on the deal. 20-25% is pretty much the norm at the moment. Also, with property prices continuing to fall through a recession to at least 2010, your son could easily end up in negative equity in the near future.

I know you want to move on, but saddling your son with a property that is losing value by the day may not be the best option. If he ends up losing his job through the economic downturn, he could end up losing the house, going personally bankrupt due to the negative equity and may end up blaming the people who talked him in to buying the house.

You do not need to use an estate agent for a private sale. You will not need a HIP either as it is a private sale.

The money that you receive from the sale of the property will allow you to be able to settle the mortgage and then allow you to borrow for your next purchase. I think that you'll be able to use the money raised from the sale of your property as collateral for the purchase of your next. Please let me know if I'm wrong!

Sales between family members should be nice and easy less red tape as you would get with an estate agent, not HIP and no fees - No Hassle!

My advice would be very careful when selling to a member of your family.

If you sell it to your son at a discount, that's all very well and good, but will you have enough money in the sale to move on yourself? If your downsizing that won't be an issue.

The bank would still be looking for a significant deposit on the deal. 20-25% is pretty much the norm at the moment. Also, with property prices continuing to fall through a recession to at least 2010, your son could easily end up in negative equity in the near future.

I know you want to move on, but saddling your son with a property that is losing value by the day may not be the best option. If he ends up losing his job through the economic downturn, he could end up losing the house, going personally bankrupt due to the negative equity and may end up blaming the people who talked him in to buying the house.

Not everyone who ends up in negative equity goes bankrupt. Assuming you can still afford the repayments you are still safe in your home.

Not everyone who ends up in negative equity goes bankrupt. Assuming you can still afford the repayments you are still safe in your home.

That's why I was referring to the issue of lost employment starting that cycle of problems.

Phylis, On a seperate point I asked you a question a number of months ago and that was: Do you think we are going in to a recession? Your answer was no at that time.

I have another question for you: Do you think we are heading for a financial depression within the UK?

That's why I was referring to the issue of lost employment starting that cycle of problems.

Phylis, On a seperate point I asked you a question a number of months ago and that was: Do you think we are going in to a recession? Your answer was no at that time.

I have another question for you: Do you think we are heading for a financial depression within the UK?


:D:D:D:D:D

All advice taken on board, very big thank you all!:) Son does work for himself and is willing to bat it our till 2011, then he no doubt will sell this when the housing market starts picking up again. Hopefully

Many use another HOLEC but I wouldn't do a HELOC on your existing house because of the closing costs, possible early termination fees, and because some banks do not permit funds from a HELOC to be used as a down payment on another property. I think you should inquire about a "bridge" loan. That kind of loan can be a 'single payment' loan which does not need a payment for, say, 3 months, and then is due in full. If you've got a good relationship with your lender, you can 'roll' that loan over if your old home hasn't sold within the three month period. If your home does sell within that period, you'll pay off the bridge loan with the proceeds.

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That's why I was referring to the issue of lost employment starting that cycle of problems.

Phylis, On a seperate point I asked you a question a number of months ago and that was: Do you think we are going in to a recession? Your answer was no at that time.

I have another question for you: Do you think we are heading for a financial depression within the UK?

rather like Noah, Phylis bought a boat recently, so come what may she will be fine. And HER house only ever goes up in value. Its Fox Hill don't ya know.......

rather like Noah, Phylis bought a boat recently, so come what may she will be fine. And HER house only ever goes up in value. Its Fox Hill don't ya know.......

Ha Ha! Here we go again. I feel we have been here before. What does having a boat have to do with "being fine come what may?" And yes we have lost some value on our home but not the great amounts shouted about in the press. Say what you like but it has been clarified by the experts, not that we plan on selling so really it isnt an issue. We like where we live, we like our house and we are happy with the standard of living which we can provide ourselves, what others think of us doesnt even come into the equation.