Should I buy my dad's house?

maggie63

My apologies if this has been answered elsewhere, and I appreciate that there are a lot of things to take into account on this subject - BUT, generally speaking, is it a good idea to buy my dad's house? Especially in today's climate?

Very briefly, my dad has no mortgage and has left, in his will, 5th shares in his estate to me, and 4 others (family). I and my business partner are considering buying the property off him (his estate, really) and allowing him to then live there rent free for as long he wants, basically. He's 72. Oh, and between us we could probably afford the payments on this, but I know there are other financial implications that i need to consider.

Any thoughts, ideas, and experiences would be appreciated, any questions to clarify and I will answer ( I can only put so much in this post). Also, this is very much just in the thought stage. Do I pursue the possibility or is it a no-no from the start?

Thanks
Maggie

Catblue

Do you and your business partner intend to live with your dad in the house?

What kind of business is it?

Will you have to get a mortgage for the property? Why would you want to do that for someone else's house? How do the other beneficiaries get their share?

What is the benefit to you by doing this? What is the benefit to your dad and the other beneficiaries?

Loads of questions, really.

There was a thread on here recently about parents who sold their house to their son and his business partner for under market value, having been assured that the parents could stay rent free for life. Fast forward a couple of years and the son and his business partner evicts his parents.

chewmylegoff

maggie63 wrote: »

My apologies if this has been answered elsewhere, and I appreciate that there are a lot of things to take into account on this subject - BUT, generally speaking, is it a good idea to buy my dad's house? Especially in today's climate?

Very briefly, my dad has no mortgage and has left, in his will, 5th shares in his estate to me, and 4 others (family). I and my business partner are considering buying the property off him (his estate, really) and allowing him to then live there rent free for as long he wants, basically. He's 72. Oh, and between us we could probably afford the payments on this, but I know there are other financial implications that i need to consider.

Any thoughts, ideas, and experiences would be appreciated, any questions to clarify and I will answer ( I can only put so much in this post). Also, this is very much just in the thought stage. Do I pursue the possibility or is it a no-no from the start?

Thanks
Maggie

i don't understand what the point of this is since he already gets to live there rent free for as long as he likes.

does he need the cash or something?

PasturesNew

What if you fall out with your partner.
What if there's illness/disability and you can't afford the two properties.
What if one has to be repossessed for some unforeseen set of circumstances, do you get his house repossessed or your own?

I'd say leave well alone. Life is too variable.

If you'd said "I am single, 50, I have £500k in the bank and my dad's house is worth £80k, shall I buy it for cash", I'd say that sounds quite a safe bet for him. Security for life of your father in that house, without worry, is of paramount importance.

Can you guarantee you won't wake up tomorrow having lost the use of a limb or two?
Can you guarantee your partner isn't cheating/won't in the future? Nor that you won't meet an alternative love?
Can you guarantee you will never ever need the money that you have spent for something else that has an urgency?

poppysarah

It's a heart decision not a business decision if you're letting your dad live there rent free.

maggie63

My apologies to the responses, I've just spent ages replying to all only to find my post didn't register for some reason! I will respond tomorrow, but briefly, I don't intend to live in the property, my family are not in a position to buy (they don't have jobs, I have a good one >40,000) and no, in reality my dad doesn't need the money as such... bit emotive there tho, he's on a pension, could prob do with some cash but see's his money as the 'inheritance' - again, that's his perogative. Would never rip my dad off, u understand?

Oh, and my business partner is purely that - business. Sorry, thanks for your responses. Very helpful, will get back with more detail tomorrow?

Cheers
Maggie

Please, keep asking to clarify
Ps poppysarah Good point heart over head, biggest issue with me, I love my dad

chewmylegoff

if he doesn't need the money then why does anyone need to buy it? are you trying to plan for IHT?

fedupnow

Maggie

I am watching this with interest but I think Pastures new's 'what ifs' have put me off, or at least make me face up to the pitfalls, of buying my aged parents house.

I would love to offer her the security of the home she loves (but can probably not afford to keep till the end of her life) for ever more.
I would love for her to have the cash to do as she pleases from here on in.
I would love not to foresee any problems with siblings when 'that time comes'.



And I would love to own it and one day live in it.

I would NEVER kick her out though- surely there could be some sort of legal thingy drawn up to prevent such a thing. Sorry bit of a numbskull on legal thingies.

little bit p1ssed too.

Sonofa

fedupnow wrote: »

little bit p1ssed too.

And all on a Monday night too, well done you:beer:

poppysarah

If buying the house is a business decision then it is a poor one if you're getting no income from your investment. A falling out with your business partner could result in the property being sold to pay off the business partner and this could result in your dad being homeless.

I think it's a terrible idea unless you're prepared to rent it to him/someone at a market rent.

You could mess up your dad's life considerably by your kindness.

If he is happy there then leave him be. If you're planning on helping him get rid of his money to avoid care home charges in the future then it's not as simple as just spending it or hiding it.
Housing benefit (now LHA) is not always payable on close relatives properties and so HB might not be available.