I’m paying half the price and my daughter is getting a mortgage for the rest. Will I have anything to leave my other daughter?Q I am purchasing a one-bedroom bungalow for me to live in. I’m paying half of the cost of the bungalow in cash and one of my daughters has a mortgage for the other half. She tells me that after 10 years the whole house will be hers and that I can then live in it rent free. Then I will have nothing to leave my other daughter in my will. Is this right? JFA It sounds to me as though your daughter is planning to take out the mortgage in her name only which will mean that only her name will appear on the title register held by the Land Registry (or,in the past, on the title deeds to the property). That’s because whether only one person is named on a mortgage, and a lender will insist that the property is bought in that sole individual’s name. So whether you go ahead as your daughter proposes,she will effectively own the whole of the bungalow from day one even though you will have effect up half the money for the property. Once the mortgage is paid off – which it sounds like it will be in 10 years time – she will own the bungalow outright and there will be no risk of the mortgage lender repossessing it. So you are right in thinking that as the bungalow will not belong to you, you won’t be able to leave what would have been your share of it to your other daughter in your will.
Continue reading...
Source: theguardian.com