mortage advice please

blue66_2

hello
I have been lucky enough to go mortage free using the one account.
My father has now asked if i want to buy his house for the same amount he paid for it £20,000.
The condition being that he stays there till he dies and i would share some captial with my sisters.
I would need a loan or mortage on this. i still have a account with one account and have a facility for £23,000 what would be the best way to go about this.
thanks

feisty1

what would be the best way to go about this.quote

don't know exactly what u mean about yr own finances

what u also need to consider is the implication 20k would have on yr father...ie this can effect any means tested benefits now or in the future......ALSO what is the value of this house, im presuming not 20K........if he is seen to be selling it for much lower than valuation & later in life requires long term care having sold his assets of cheaply this can be considered as deliberate evasion

herbiesjp

Beware of inheritance tax implications if he is still living there as well

lisyloo

Yep feisty is right.
If he doesn't sell it to you for market value then the local authority might want the house back to pay for long term care.
If also not your main property so you will have to pay capital gains tax when you sell it.
What happens about repairs if he gets too old to do them?
It's a bit of a minefield to be honest.

Could he downsize or move to a cheaper area.
My husbands folks did this and they are very happy in a sheltered flat where maintenance and gardens are taken care of and they have lots of company.

Alternative he could consider an equity release scheme.
In this case any profits go to a company rather than family which is a shame but if you deicde to proceed you need to be very very careful about all the implications, e.g. long term care, inheritance, tax, insurance for a house you don't live in etc.

feisty1

Equity Release is a serious decision as you are borrowing against the equity in your home. You should seek qualified financial and legal advice, you should also consider involving your closest family in any decision making.

Equity release does not suit everyone. It is always worth considering whether funds could be raised affordably from other sources including downsizing, before choosing this option.

I am an ER Adviser

You should note that this site doesn't check my status as an ER Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.

feisty1

lisyloo wrote: »

.Alternative he could consider an equity release scheme.In this case any profits go to a company rather than family which is a shame but if you deicde to proceed you need to be very very careful about all the implications, e.g. long term care, inheritance, tax, insurance for a house you don't live in etc.

THIS IS INCORRECT INFORMATION