Buying parents house

buffy01

Hi

I am new to this and would appreciate some advice. I along with my 3 siblings would like to purchase our parents house. They are approaching 65 and my father is on Invalidity benefit and my mother doesnt work. They have an interest only mortgage and owe approx 39k when my father reaches 65 next year he will lose approx £100 a week income and they will not be able to afford their contribution to their mortgage that they have to pay as well as general living expenses. Their house is worth approx £100k and we would be looking to purchase it for approx £80k giving them £40k to do with as they please. I have 2 questions really :

1 Any advice from anyone on any pitfalls from the above and
2 Would they be able to claim rent from the DSS?

00ec25

1. Your parents can sell you the house for whatever price you and they agree, however, if they subsequently need to go into a carehome the fact they have sold the house means the regulations regarding deprivation of assets will have to be considered, particularly given they are already on benefits and therefore presumably have very low savings other than the house value - see here

2. yes, in principle this can be done, but experiences vary and councils can either be very strict (for example possible hurdle being was house previously let commercially and bought as a BLT property from the outset) or they could simply say no!

mlz1413

Have you found out if you can raise the £80k?

If 3 of you need a joint mortgage to buy this house then if any of you already have mortgages you may not be able to re-mortgage.

If you want to raise the funds on a B2L mortgage then you will need 25% plus deposit plus be able to prove the rental income.

Have you agreed how repairs of the house will be funded ie new roof, damp etc. Also who is responsible for carpets, kitchen and bathroom replacements?

You will need to keep receipts for the expenses and pay tax on any profit so you need to have a written agreement of the proposed split for payments and receipts.