Some advice needed as I really do not know what to do =(

Phaelok

Hi everyone,
I do not use this site as often as I should, but turn to this site and its members in the hope that someone could provide some general advice. My apologies in advance for the length of this message, but it is sometimes easier to post such messages without having to speak to someone face to face about it.

I have lived with my parents all my life and am about to reach the young age of 26! I am single am currently doing a PGCE in secondary education which is due to finish in April 2010 (on a part-time basis). I also work for a bank part time and earn an annual income of just over £12k. The problem I have is that my father has never been one to put money aside and in his earlier years had more than enough to secure a mortgage on a property. As a result both my parents are in their mid 50's and have been renting from a local housing association for the past 30years. The option they have is to buy the property from the council at a discounted rate as they are doing more and more things to the property (new kitchen for example). Originally they were told they could purchase it for approximately £82k (this was several years ago), with the property value estimated at around £120k.

Although for some this may raise eyebrows, but if my parents both died tomorrow and me being single with only £7k to my name, realistically I am not in a position to afford a decent place within a set budget I have. Sorry for saying that, but sometimes if and when such things happen, it is better to be realistic =( I always worry about this and think that for various reasons buying the property would mean just that - that my parents can continue to do things to the house knowing full well it is theirs and that would be passing it on also. My sister, although in a completely different position than I am, is trying to dissuade me from purchasing the property and suggests I look to purchase a 1-2 bedroom flat. But she seems to ignore the above. I often, although I am ashamed to admit this, cry sometimes as I want to please my parents but also think about my future and what I have to my name at present.

Given the above, would purchasing the property be a sensible acquisition for both the short and long term?

Many thanks

beecher

What do your parents want? This to me is the most important aspect - hopefully they will live for another 30 or more years or so, and hopefully you'll be closer to retirement age yourself by the time any inheritance comes to you.

You've got 7k saved and you're just starting on a new career with lots of potential. Rather than spending time crying because of what you feel you don't have, why don't you try to concentrate on all the things you have?

opinions4u

Phaelok wrote: »

The problem I have is that my father has never been one to put money aside and in his earlier years had more than enough to secure a mortgage on a property. As a result both my parents are in their mid 50's and have been renting from a local housing association for the past 30years.

You make it sound like there's something wrong with that. It's almost as if a lifetime of resentment for Dad has just been posted!

The option they have is to buy the property from the council at a discounted rate as they are doing more and more things to the property (new kitchen for example). Originally they were told they could purchase it for approximately £82k (this was several years ago), with the property value estimated at around £120k.

I thought they rented from a housing association?

Why not tell us the current value and the current offer price?

Although for some this may raise eyebrows, but if my parents both died tomorrow and me being single with only £7k to my name, realistically I am not in a position to afford a decent place within a set budget I have. Sorry for saying that, but sometimes if and when such things happen, it is better to be realistic =( I always worry about this and think that for various reasons buying the property would mean just that - that my parents can continue to do things to the house knowing full well it is theirs and that would be passing it on also.

Are you after a nice inheritance?

You get born, you get educated, you get a job and you build a life from there. If they popped their clogs today you would find somewhere to rent.

My sister, although in a completely different position than I am, is trying to dissuade me from purchasing the property

I don't get it. Surely it's for your parents to buy it, not you?

Given the above, would purchasing the property be a sensible acquisition for both the short and long term?

Surely that's a decision for your parents. I certainly wouldn't have wanted to be a landlord to my parents before I moved out and built my own life.

Is buying a good idea now? Long term probably, short term probably not. That said, if your home is the only bought home in the middle of a council estate it might not be the best thing to do.

I don't think I've fully understood your situation.

blue_monkey_2

YOu could go onto the tenacy with your parents and then IF they died tomorrow you would still have somewhere to live. If you have lived their all of your life then usually the tenancy would become yours after they died anyway - going onto the tenancy would mean that you would still have the assured tenancy without the hassle of signing anything. They could still do things to the house safe in the knowledge that you will have somewhere to live. A HA tenancy is Assured and for life.

If they could not pay their mortgage (asuming from reading your post that they will get it and you will pay it, how would you do so if you lost your job for example) they would then lose their house, the place they have also lived in forever. Should one of them need care in the future and the other has passed away then the house would need to be sold to pay for that care. That would still leave you with no place to live as it would be their house and not yours. You still have 'nothing'.

If you want to buy your own place then you need to start saving and looking for a house of your own, not risk your parents future because you want somewhere to live and everywhere is too expensive.

The lady in the HA up the road form us is in her 90's and I am sure they must be finding it quite insulting that you are on here talking about them dying and they are only in their mid 50's. With all due respect, you could get a mortgage and get hit by a car and also die tomorrow then how do they pay the mortgage that you took out because you wanted somewhere to live when they were dead?

I am sure that if they had wanted to buy their house they would have choosen long before now to do so, they are clearly happy with how things are so if YOU want security ask them to put you on the tenancy and pay your share of the rent/bills/upkeep and then your parents will have a bit more free cash.

I used to worry about where my kids would live in the future but we have just been given an Assured Tenancy from the HA and so I know that I will put my children on the tenancy when they are old enough so they have somewhere to live should they ever need it - just in case there is any problem with them not automatically getting the house tenancy if and when something happens to us. Maybe your parents are feeling the same way - they know that you will get the tenancy and so are not actually as bothered as you are.

Conrad

You ask is it sensible for them to buy the property, well that depends on many thinks, not least thier temperament and ability to sustain debt payments.

I have in the past arranged RTB where a resident working child was named on the deeds.

Quite tricky but possible. Consult an expereinced broker.
As for all the vitriole above, ignore. I bet some of these posters would fight to the death when it comes to say an inheritance dispute with a long lost relative beneficiary later in thier lives.

opinions4u

Conrad wrote: »

As for all the vitriole above, ignore. I bet some of these posters would fight to the death when it comes to say an inheritance dispute with a long lost relative beneficiary later in thier lives.

The original post is confusing in several ways.

Trying to establish the reasons behind a question is surely the right way to giving a relevant answer.

Phaelok

Thank you to those who have replied. Perhaps I should explain the position somewhat further.

My parents have been renting from the council for the past 30 years and my mother wishes to do more things to the property, but is concerned that what is being spent makes it effectively not their house. The council allows the property to be bought under the RTB scheme with at least one of the tenants having to be named on the property. However my mother works part-time and my father, although working full-time, has several substantial debts and is in agreement with his creditors (through a 3rd party) to repay X amount per month. Therefore it would be only be possible to purchase the property through a joint mortgage between my mother and I, using the existing amount paid on rent every month to make a part contribution to the mortgage payment (through which my father is in agreement with). We have yet to have the house valued and are exploring the issues concerning the mortgage (some lenders say the mortgage has to end before one applicant reaches the age of 65, however I wanted to do it longer than this).

Perhaps my original post should have been clearer - my mother/father want a lot of things done to their place and it is disheartening, for me anyway, to see them spending their money on a place which is not theirs. They feel exactly the same as what I do and they feel that purchasing the house would be in their best interests. I am in a position financially to help them and I intend to do so.