Buying off of Parents

befuddled08

Hi

Can somebody give me some advice about buying part of my parent's house. There is no mortgage on the property at the moment and both my parent's are over 75. I live in the property with them. Is there anyway I can get a mortgage soley in my name for 50% of the property and have my name added to the deeds.

Mrs_Bumble

What are you trying to achieve with this?

befuddled08

I wish to free up some money for my parents to enjoy and give them peace of mind as to where I will live when anything happens to them. It will also give me a base from where I will be able to buy my siblings share of the property when the time comes.

Mrs_Bumble

You will need to be careful as if you put some of the property into your name it could be seen as trying to get rid of assets to avoid potential inheritance tax liability and nursing home costs later on.

I don't think it is possible to purchase 50% of a property by raising a mortgage as the lender would look at it from there point of view and can't see them being happy as they can't repossess half a house.

Why don't you go and speak to an independent financial adviser for help with this so that you avoid any potential pitfalls.

befuddled08

Thank you for your advice you have been very helpful.

CLAPTON

You would need to raise a mortgage on the whole house with your parents and youself on the mortgage and on the deeds.

So, even though you would actually pay the mortgage, you and your parent would be jointly and severally responsible for the full mortgage payments.
So e.g. if you became unable to pay, the mortgage company would chase them for the full payments. And of course the house would then be at risk of repossession.

befuddled08

Hi Clapton

Thanks for this, thats exactly what I want to avoid, I dont want them to have any worries like that.

Thanks again I think its going to be a no go.