So I am looking to build on my inlaws block.
The current scenario is My fiances father passed last week, and her mother is living in a dilapidated house. It should be condemned. There is no two ways about it, it needs to come down. Her Mother owns the house and block outright.
Kerbside valuation is 600k. SE suburbs Melbourne, Chelsea. Owned since 1983 and has been PPOR for 30+ years
My fiance and I were thinking of demolishing it and putting a nice big house on it for all of us to live in. The only thing is we dont want to pay stamp duty on any transfers of titles to us. We want the mother to retain rights to the title (shes a bit funny like that anyways).
So we were hoping to utilise her as a guarantor for a 400-450k construction loan to build there. Does anyone forsee any hurdles we may need to jump? We figured that with an asset so large covering the loan, the bank would be silly not to take it. My fiance and i are both only children and there is no other potential claim to her inevitable inhertiance of that block, and thus the home we wish to build on it. We are planing on living in it till well past her mother future passing and would constitute our an inheritance of mothers PPOR to fiannce's and my PPOR avoiding stamp duty.
Her mother is not working and not likley to be employed. Fiance and i have combined income of 145k and a new 355k mortgage of a build we just finished. We have approx 30-40k equity. Total disposable cash monthly is approk 3k. So we are very much in a position to service the two mortgages during the constructions pkhase, and are looking to rent out the home we are currently in when the build is complete.
Any advice on this set up would be greatly appreciated.
The current scenario is My fiances father passed last week, and her mother is living in a dilapidated house. It should be condemned. There is no two ways about it, it needs to come down. Her Mother owns the house and block outright.
Kerbside valuation is 600k. SE suburbs Melbourne, Chelsea. Owned since 1983 and has been PPOR for 30+ years
My fiance and I were thinking of demolishing it and putting a nice big house on it for all of us to live in. The only thing is we dont want to pay stamp duty on any transfers of titles to us. We want the mother to retain rights to the title (shes a bit funny like that anyways).
So we were hoping to utilise her as a guarantor for a 400-450k construction loan to build there. Does anyone forsee any hurdles we may need to jump? We figured that with an asset so large covering the loan, the bank would be silly not to take it. My fiance and i are both only children and there is no other potential claim to her inevitable inhertiance of that block, and thus the home we wish to build on it. We are planing on living in it till well past her mother future passing and would constitute our an inheritance of mothers PPOR to fiannce's and my PPOR avoiding stamp duty.
Her mother is not working and not likley to be employed. Fiance and i have combined income of 145k and a new 355k mortgage of a build we just finished. We have approx 30-40k equity. Total disposable cash monthly is approk 3k. So we are very much in a position to service the two mortgages during the constructions pkhase, and are looking to rent out the home we are currently in when the build is complete.
Any advice on this set up would be greatly appreciated.