Hi, thanks in advance for your help.
The situation is slightly complicated, so I'll try to put it as frankly and simply as possible:
My wife, her mother, and I, are planning to buy a house together. My mother in law owns the house we live in now outright, but it's not 100% ideal, especially since we want to start a family. My mother in law is the sole person on the deed. My wife and I hope to use the sale of this home as a sizeable deposit against a much better home, and take a 25 year home loan. My mother in law is happy to go ahead with this, provided we guarantee her somewhere to live into her twilight years.
The problem is, my endearing mother in law is on the cusp of retirement, at 65 years old, and new legislation prevents her from taking any loan that will last beyond her 75th year. A 10 year loan to make up the difference in the range we're looking to buy in is unaffordable. The solutions we can think of are all either unpleasant, expensive, or both, such as:
1. Sell the house, and have the monies transferred into an account in one of our names, rent in the interim, then apply for the mortgage and set about buying the new house. Renting and moving twice is a big ask, leases are usually at least six months long, and taxes on a transfer of funds that size would be prohibitive and wasteful.
2. Transfer ownership of this house to my wife's name prior to buying, to do a standard conditional of sale offer on a house that we find suitable. This is an issue because the duty of transfer fees here in Victoria would essentially mean we're wasting over $20k before we've even started to buy the new house.
Any advice or other ideas would be more than welcome. If you need further information to help let me know.
The situation is slightly complicated, so I'll try to put it as frankly and simply as possible:
My wife, her mother, and I, are planning to buy a house together. My mother in law owns the house we live in now outright, but it's not 100% ideal, especially since we want to start a family. My mother in law is the sole person on the deed. My wife and I hope to use the sale of this home as a sizeable deposit against a much better home, and take a 25 year home loan. My mother in law is happy to go ahead with this, provided we guarantee her somewhere to live into her twilight years.
The problem is, my endearing mother in law is on the cusp of retirement, at 65 years old, and new legislation prevents her from taking any loan that will last beyond her 75th year. A 10 year loan to make up the difference in the range we're looking to buy in is unaffordable. The solutions we can think of are all either unpleasant, expensive, or both, such as:
1. Sell the house, and have the monies transferred into an account in one of our names, rent in the interim, then apply for the mortgage and set about buying the new house. Renting and moving twice is a big ask, leases are usually at least six months long, and taxes on a transfer of funds that size would be prohibitive and wasteful.
2. Transfer ownership of this house to my wife's name prior to buying, to do a standard conditional of sale offer on a house that we find suitable. This is an issue because the duty of transfer fees here in Victoria would essentially mean we're wasting over $20k before we've even started to buy the new house.
Any advice or other ideas would be more than welcome. If you need further information to help let me know.
