Parents buying me a house......

geordie_ben

Doozergirl wrote: »

We need to know their motivation.

Their main motivation is to help us both onto the property ladder.
They are thinking of renting anyway, at least for a few years until they find somewhere they want to live and can manage to live in

Doozergirl wrote: »

Presumably part of the reason you want to buy is that you don't want the insecurities of renting. Your parents need that security more than you do as they get older. The best option for everyone is that they lend you the deposit money. If they are knocking on they really need to have security of tenure, far more than you do. Lending the moeny on the basis that you might be able to raise a mortgage in 2 or 3 years is a massive risk.

All our family agree that renting is throwing money away, especially in a time where property can be bought cheaply.
Even if they do just lend us both deposit money I still need to know the ins and outs to not only give us peace of mind, but also protect us both financially. I'd hate for something to happen to me which meant I couldnt pay them back as quickly as planned

geordie_ben

mlz1413 wrote: »

Above in blue are my thoughts

Thanks! I know there is a huge moral side to this, but until we look into all the possible options and legalities to see if something that this can work then the moral issues take a back burner until I have as many facts/advice as possible

mlz1413

geordie_ben wrote: »

.I'd hate for something to happen to me which meant I couldnt pay them back as quickly as planned

You need to be prepared to sell up if this happens.
You also need to discuss how you pay back any value if the house doesn't sell for £100k after all fees & costs.

ETA: I've just seen that have £3700 of personal debt, ensure you can keep up all the repayments on this to pay by Sep 10, or put the house buying on a back burner until then.

Doozergirl

geordie_ben wrote: »

Their main motivation is to help us both onto the property ladder.
They are thinking of renting anyway, at least for a few years until they find somewhere they want to live and can manage to live in.
All our family agree that renting is throwing money away, especially in a time where property can be bought cheaply.
Even if they do just lend us both deposit money I still need to know the ins and outs to not only give us peace of mind, but also protect us both financially. I'd hate for something to happen to me which meant I couldnt pay them back as quickly as planned

In that case then as they will want to buy somewhere, they need that money in the bank for when that time comes. You cannot take on the responsibilty of looking after what is not spare cash but their nest egg. If something does happen to you or your income that leaves you unable to raise a mortgage for the amount they need then their money is locked into your house.

You can allow them to gift or lend you the deposit but my advice would be frankly, to have the dignity to stand on your own two feet for the rest of it. That money is money for their home, not yours.

geordie_ben

Has anyone had any experience on MPI in this kind of situation? Even if I was just borrowing the deposit amount I'd still want some cover for peace of mind

misskool

Why not finish paying off your debts and learn how to save some money on your own? The home for your parents should be their security for their old age.

Doozergirl

geordie_ben wrote: »

Has anyone had any experience on MPI in this kind of situation? Even if I was just borrowing the deposit amount I'd still want some cover for peace of mind

There are all sorts of life insurance and critical illness covers that you can take out, they don't have to cover mortgages, they can be completely unrelated. Walk into any bank and they'll be happy to have someone sell you a million pounds worth of cover if you want it.

geordie_ben

mlz1413 wrote: »

ETA: I've just seen that have £3700 of personal debt, ensure you can keep up all the repayments on this to pay by Sep 10, or put the house buying on a back burner until then.

All of my personal debt will be gone before I even think of moving out

Luckily, I'm not that silly

poppysarah

If you need somewhere to live, move in with them.

You do seriously need to look at clearing debts before you borrow money off anyone.

Catblue

geordie_ben wrote: »

All our family agree that renting is throwing money away, especially in a time where property can be bought cheaply.

So renting is throwing away money, and yet you want your parents to sell their own house and give you the money, thus forcing them to rent?