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    • diamond dave
    • By diamond dave 14th Mar 17, 9:35 AM
    • 534Posts
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    diamond dave
    Advice on House Buying
    • #1
    • 14th Mar 17, 9:35 AM
    Advice on House Buying 14th Mar 17 at 9:35 AM
    My 30 yr old dd is desperate to move out of family home - she has a very large cash reserve and we are in a position to help her with extra funds. Now there are 2 problems- she has a great job with NHS but has a serious medical condition which could mean that she might be unable to work in the future and, as importantly, I have simply no idea as how to proceed! It's been 30 odd years since we bought this property we just saw this house and wacked down some cash and I have no idea how to help her move forward on this now. Houses are moving fast here and because of her health she really needs a " new build" or similar.
    Question: what is the first step? Contact a broker? Speak to developers? Get the cash together ?We've looked at a couple of places but they seem pretty small and compact.The help to buy scheme looked ok but on carefull inspection is not really an option. Bottom line: should she see a property that she likes, would it be sensible to sink all her money( plus a chunk from us) into it or go for a partial mortgage - and given her health would she get a mortgage?
    Sorry its so long but I really need help on this as it's doing my head in!!
    Last edited by diamond dave; 14-03-2017 at 9:37 AM. Reason: adding info
Page 1
    • Out, Vile Jelly
    • By Out, Vile Jelly 14th Mar 17, 9:41 AM
    • 3,224 Posts
    • 10,428 Thanks
    Out, Vile Jelly
    • #2
    • 14th Mar 17, 9:41 AM
    • #2
    • 14th Mar 17, 9:41 AM
    If you are in a position to help her buy a small place outright, then surely that negates the worry over possible loss of income in future?

    You don't have to declare medical issues on a mortgage. An independent, whole of market broker is a good place to start- they will want to know salary details, length of employment, expenditure, status of any loans/credit cards etc. It will help if she's on the electoral register. However, even a small mortgage needs to be paid and is a serious commitment.
    They are an EYESORES!!!!
    • BJV
    • By BJV 14th Mar 17, 9:41 AM
    • 2,141 Posts
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    BJV
    • #3
    • 14th Mar 17, 9:41 AM
    • #3
    • 14th Mar 17, 9:41 AM
    The mortgage rates are very good at the moment and savings rates are low. So why not get a mortgage and keep the cash on the understanding that if her health gets too bad she can almost pay it off in full.

    The very first thing she needs to do is decide what she needs and what she would like. These are two very different things as unless she has a serious amount of cash she may have to compromise on the wants list.

    You now need to do some research into areas. It has and always will be about location and this is even more important ref health.

    Then once you have decided on area start searching Rightmove. Pictures are good but estate agents have magic cameras and can make the smallest space look massive so go and see as many as you can.

    Good luck and happy house hunting.
    Happiness, Health and Wealth in that order please!
    • Hoploz
    • By Hoploz 14th Mar 17, 11:15 AM
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    Hoploz
    • #4
    • 14th Mar 17, 11:15 AM
    • #4
    • 14th Mar 17, 11:15 AM
    In my view this boils down to what other use your money could be put to if you didn't chip in. It's always going to be cheaper to buy a house without a mortgage, as there is no interest to pay. But what are the implications for you?

    Can you certainly do without the money forever? Does she have other siblings who you might need to consider in terms of making things 'fair?' Are you mortgage free yourself with absolutely no future need for the money? The point is, this sounds like a long term commitment on your part - it's difficult to see into the future. No doubt it's hard to think of what the future might hold for her, but it's also about yourself as well.

    If you decide to go ahead there are choices to be made about how it'll work. You could hand over the cash with no strings. That means no strings whatsoever, so if she decides to sell up in 3 years time, cash in and buy a camper van to travel the USA, you'd have no say and no right to the money back. If she meets a partner and they get married, you'd effectively be handing over half of it to him. Who knows what might happen ... You and your daughter could even fall out and you'd have no way of controlling the house or your money.

    Alternatively you could be a joint owner of the property, or a charge could be set up, whereby the money would be repayable to you in the event of its sale. Or some sort of trust arrangement could be set up to own the house with you as joint beneficiaries.

    Basically what I'm saying is, this would be a huge step which needs proper advice on how best to go about helping your daughter while at the same time protecting yourself and your own future ... And the rest of the family if there is anyone else.
    Last edited by Hoploz; 14-03-2017 at 11:19 AM.
    • diamond dave
    • By diamond dave 14th Mar 17, 12:45 PM
    • 534 Posts
    • 347 Thanks
    diamond dave
    • #5
    • 14th Mar 17, 12:45 PM
    • #5
    • 14th Mar 17, 12:45 PM
    As her condition will deteriorate until she dies - I'm not too worried about our future, as any future without her will leave us witout any future.
    All I'm concerned with is her happiness and doing everything to make here confortable. What I really need to know is what is the next steps to take?
    • Out, Vile Jelly
    • By Out, Vile Jelly 14th Mar 17, 12:58 PM
    • 3,224 Posts
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    Out, Vile Jelly
    • #6
    • 14th Mar 17, 12:58 PM
    • #6
    • 14th Mar 17, 12:58 PM
    What I really need to know is what is the next steps to take?
    Originally posted by diamond dave
    1 have a proper think about what type of property is most appropriate to her medical needs

    2 look at Rightmove/Zoopla properties in your area to get an idea of average prices/housing stock

    3 find an independent mortgage broker and play around with the online calculators of High St banks to get an idea of possible deals

    4 read Martin's guide to mortgages and housebuying

    It can't be THAT different to buying 30 years ago!
    They are an EYESORES!!!!
    • ReadingTim
    • By ReadingTim 14th Mar 17, 1:15 PM
    • 1,308 Posts
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    ReadingTim
    • #7
    • 14th Mar 17, 1:15 PM
    • #7
    • 14th Mar 17, 1:15 PM
    Understand you mean the best, but this is a 30 year old grown woman you're talking about. These are decisions she should be making, in her capacity as an adult - especially if she's that keen to move out.

    I know every parent wants the best for their kids. But she's not a child any more. It's her life, and her money - perhaps let her make the decisions about how she wants to live it, what she wants to do with it etc?
    • G_M
    • By G_M 14th Mar 17, 1:22 PM
    • 38,490 Posts
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    G_M
    • #8
    • 14th Mar 17, 1:22 PM
    • #8
    • 14th Mar 17, 1:22 PM
    Go to the locallibrary, borrow a book on house buying (see below), and pass it to her (remind her to return it or renew it in 3 weeks).

    Or buy her a copy, though that's less 'moneysaving'.

    https://www.amazon.co.uk/How-Your-First-Home-Sell-x/dp/0091935377/ref=sr_1_1?s=books&ie=UTF8&qid=1489501268&sr=1-1&keywords=house+buying

    https://www.amazon.co.uk/Buying-Selling-Home-Dummies-Melanie/dp/0470994487/ref=sr_1_3?s=books&ie=UTF8&qid=1489501268&sr=1-3&keywords=house+buying


    https://www.amazon.co.uk/How-Your-First-Home-Sell-x/dp/0091935377/ref=sr_1_1?s=books&ie=UTF8&qid=1489501268&sr=1-1&keywords=house+buying

    Or
    http://www.bbc.co.uk/consumer/23623491
    • diamond dave
    • By diamond dave 14th Mar 17, 5:55 PM
    • 534 Posts
    • 347 Thanks
    diamond dave
    • #9
    • 14th Mar 17, 5:55 PM
    • #9
    • 14th Mar 17, 5:55 PM
    Thanks to all who replied, some good answers some not so good.
    • Hoploz
    • By Hoploz 14th Mar 17, 8:12 PM
    • 3,420 Posts
    • 2,995 Thanks
    Hoploz
    Well the next steps would be to have a think about the budget that's available in cash. Does it buy something suitable for her needs? Check out Rightmove to get an idea what's available at that price level. If it turns out you've got enough between you then that's great.

    Register with the local estate agents and hopefully you'll find something and be able to move forward without delay. When you find a place and get an offer accepted you'll need to appoint a solicitor, though you won't need them to start work immediately.

    Once the chain is complete (seller has found etc) then you'll instruct them to start work and it'll go from there. You'll need the deposit ready for exchange of contracts. This is normally 10% but can be varied by arrangement. The balance of the funds, stamp duty, and solicitors fees will all be payable on the day of completion.
    • glasgowdan
    • By glasgowdan 14th Mar 17, 8:37 PM
    • 2,016 Posts
    • 2,142 Thanks
    glasgowdan
    Thanks to all who replied, some good answers some not so good.
    Originally posted by diamond dave
    They all look like good replies to me. Whether or not they are what you want/expect people to say is neither here nor there.

    You mention 'compact' as a bad thing. Is the 'DD' (you mean daughter, right? That's a mumsnet acronym...) single? Does she need a big house/bigger bills? Compact might just be ideal.

    Above all...what does SHE want? Agree with above - she's an adult and obviously capable of making her own decisions. Sound enough of mind to hold a good job.
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