House Swap Info

IrishKop

Hi All,

I am looking for some information, i have searched but couldn't really see anything that answers my questions so your help and pointers are very welcome and appreciated.

I currently live in a 2 bed house with my better half, 1 child and another on the way :eek:, Like everyone i am in negative equity up to my eyeballs. Purchased house early 2008 for 265k now worth 130k :mad:. we bought the house once my first child was born, then things crashed and everyone knows the story.

My parents who dont live very far away (10mins walk) and are now in there 60's both dont work, with mortgage nearly gone, (less than 8K remaining), My mother wants a smaller house, less cleaning and father has had a fairly big operation and his mobility is limited.

There house is worth approx. 260K, they suggested they would like to swap houses, knowing i have another child on the way, and that i would pay any solicitors fee's and any other fees that come up, also give them 5k for redecorating the 2 bed house.

This is a great opportunity for me and my family to grow.

This is my inheritance, and my 2 brothers would get the 2 bed to sell, when that horrible time comes.

My questions are:

Will EBS, do this transfer of property? is this a re-mortgage? Will Stamp duty apply if so how much. How should i approach this.

I am sure there is heaps i havent thought of so anything i should consider or ask EBS and Solicitors then please suggest.

Sorry if the above is long winded but thought better to give the full story..

IrishKop

Just for note, I have touched base with EBS and they said they have not done a mortgage in over 1.5 years that I would better off speaking to BOI

I don't believe the above, as the EBS is also an estate agent and I would bet if I was purchasing 1 of there houses I would be approved.

I called customer care and the guy I was speaking to said this all sounds perfect and that it is reducing there risk, and that I should send a letter to the credit control and see what they say about the propasal.

If anyone can see any other options or ways to look at this then please suggest

Thanks in advance

StillWaters

EBS are not an estate agent, and they are not giving out mortgages.
You really need legal advice on this as there will be gift tax implications. You might be better off drawing up an agreement between you (with your parents having a separate solicitor) and leaving the mortgage as is.

Also you get an inheritance worth 260, and you brother 65?

wmpdd3

Get good legal advice asap, something similar happened in our family but it unraveled in ways that were never fore seen.

IrishKop

Thanks on this & sorry i haven't replied, We have done the move and all went well, we just done it based on a lease.. and we are going to save over the next few years then hopefully have the deposit of 10% and go back to the banks and try get it done. I don't in vision the banks helping anyone at the moment.

Still Waters: with regards the question of what i get to what my 2 brothers get of inheritance. if it was to happen today we would get the house divided between us but in reality the house would not be sold for 260 as nothing is really selling in my area for that price. so my inheritance just gets swallowed up in negative equity and hopefully when that dreaded day comes house prices will be higher and my 2 brothers get 70k+ each.

in-truth the inheritances is not something my family would be bothered about especially when everyone is alive, as it is a choice of what you want to handout now while your alive about dividing equally when your gone.

@ wmpdd3 i have to say i am definitely concerned about something happening further down the line if we cant buy the house, even though we are all happy family's now nobody knows whats coming down the road.

L1011

StillWaters wrote: »

EBS are not an estate agent, and they are not giving out mortgages.

I suspect the local EBS branch is a franchise in an estate agent (if any of those are still authorised?). This was not uncommon, even near Dublin we had an EBS franchise and an Irish Permanent franchise in estate agents, both of whom did full counter services!