Parents buying me a house......

geordie_ben

Me and my parents are looking into them selling our current family home and lending me some/all of the money to buy myself a house

If I borrwed most of the money they would move into rented accom

I would then pay my parents back instead of getting a mortgage

We've only literally just started thinking about it and are unsure of the options available

We've thought some of the options could be

• Lending the money until it was all paid back (£100,000 in 12 years)
• Lending the money for 2 or 3 years, paying off as much as possible, then getting a mortgage when they wanted the money back
• Lending the money to buy myself a house, then when they wanted to buy again, i would take the mortgage out and they would like in the 2nd house
• Lending a smaller amount of money as a deposit and getting a mortgage myself

Has anyone ever done something like this?
What are the pro's and con's
Anyone know the legal side?

I have an older sister and obviously my parents aren't getting any younger so we'd also need to think of what would need to happen when they pass away, or if i passed away before the money was fully paid back

Any help would be great!!

Fly_Baby

Are you the only reason they want to sell? If so then wouldn't it be cheaper and easier for them to remortgage their property and lend you the money? And you would take out a mortgage for the outstanding amount?

Selling a family home is a big loss. It must be full of happy memories for all of your family, the place you want to be able to come to no matter what. I am surprised your parents are comfortable with what you are suggesting. And do YOU really want to come to some strange rental place to see your parents instead of the home where you grew up?

LeeSouthEast

£700 a month will see the £100k paid back in 12 years.

If you start getting a mortgage co involved, you will pay through the nose.

geordie_ben

My parents are wanting to move anyway.

In a 5% savings account it would take 12 years and 10 months to pay back £100,000 paying £500 a month into it

Any tips or advice anyone?

Doozergirl

Forgive me, but I'm struggling to see where your parents benefit from the arrangement at all?

I love my kids but selling my own home to move into rented to lend them the money, interest free, to buy their own place?

owitemisermusa

Who will pay their rent?
Is there any outstanding mortgage on the house currently?
Why not ove into the family home and they move into rental. Isn't that the easiest thing to do?
HTH.

geordie_ben

Doozergirl I appreciate your comment but I think it is stemming away from my main thread.....

picardygirl

Whats your sister's view on this ....... ???

geordie_ben

I would be paying their rent plus more to be paying the money back
When I come to move out in around 18 months the house will be fully paid off and mortgage free
We have lived in the house all our lives and all wish to move to different places, my parents included

geordie_ben

picardygirl wrote: »

Whats your sister's view on this ....... ???

As of yet she doesnt know we have even thought of this, I wanted to get clued up on all the pro's and con's before confusing everyone

picardygirl

geordie_ben wrote: »

As of yet she doesnt know we have even thought of this, I wanted to get clued up on all the pro's and con's before confusing everyone

Is she a homeowner with a mortgage?