Parents buying me a house......

mlz1413

geordie-ben I disagree with your logic, first and foremost renting is the same as interest only mortgage payments - ie you are paying someone, LL or lender, money for the purpose of living in a property - you are not paying back unless you have a repayment mortgage and then its not all the monthly payment.

Second you parents wish to move away so you won't be living at home to save the £500 pm you currently pay towards your debts.

Hence you won't be throwing away or saving up £6000 to 9600 pa.

I realise you might have the oportunity of paying your parents a monthly sum off a loan they might be able to give you, which is basically a 100% repayment loan - but as you have said this is not forever.

I also think your parents might be better going for an entirely different option:
You say they want to rent in a few areas before settling and you say 2 or 3 of you may live in the house you buy.
So why not discuss renting your parents house for 1 year at a set rental and then you have to pay all the bills, get your own food etc.
After the 1 yr your parents can decide if they have found where they want to live, see what you are like at paying bills. You can see what is like living with friends and paying bills etc.

poppysarah

geordie_ben wrote: »

Discuss what? An idea that I have no facts about and confuse everyone doing so?

This is why I am trying to get as much advice/as many facts as possible

Start speaking early to the interested parties who will kick up a stink if they think they've been excluded from discussions.

Families fall out hardest over money.

geordie_ben

morg_monster wrote: »

You say they may want to buy a house in "a few years", what will you do then? Because obviously you can't pay off £100,000 in "a few years"?
You will need to take out a mortgage to cover it, I assume, and if that is going to be straightforward, why not just get a mortgage now?

Morg

The option where my parents would want to buy in a few years, as naive as it might sound, would work something like this...
I buy the house with the money they give me, up until they want to buy I put away the monthly repayments into a savings account which never gets touched
At the time my parents come to buy I would get a mortgage for the remaining value that I owed them and they would use that money, plus what was in the savings account, to be buy their new house

Oldernotwiser

I may be being cynical but I wonder whether the real idea of this plan is that the OP's parents will be claiming housing benefit (LHA) for the property they rent.

geordie_ben

mlz1413 wrote: »

So why not discuss renting your parents house for 1 year at a set rental and then you have to pay all the bills, get your own food etc.
After the 1 yr your parents can decide if they have found where they want to live, see what you are like at paying bills. You can see what is like living with friends and paying bills etc.

neither myself, nor who I would be wanting to live with, would want to live in this house.

So this would not be an option

geordie_ben

Oldernotwiser wrote: »

I may be being cynical but I wonder whether the real idea of this plan is that the OP's parents will be claiming housing benefit (LHA) for the property they rent.

I can compeltely confirm there is no alternative reason for this post other than my parents possibly buying me a house with profit from the sale of the family home

I'm failing to see how you could think my parents could claim any type of money? I dont even know how someone would qualify for housing benefit if they were to buy their own house? Isnt housing benefits for people out of work etc?

geordie_ben

poppysarah wrote: »

Start speaking early to the interested parties who will kick up a stink if they think they've been excluded from discussions.

Families fall out hardest over money.

sarah i do agree, but i thought i'd try and get some kind of facts together before sitting in a room and saying 'i dont know' when ever someone asked me a question.....

Oldernotwiser

geordie_ben wrote: »

I'm failing to see how you could think my parents could claim any type of money? I dont even know how someone would qualify for housing benefit if they were to buy their own house? Isnt housing benefits for people out of work etc?

They wouldn't be able to do this legally but you wouldn't be the first family to try to swing something like this.

HB/LHA can also be claimed by people who are employed.

geordie_ben

Sorry, but how can it not be done legally?

If its not legal than I certainly dont want to do it.

I'm lost as to how my parents buying me a house and then me repaying the money can be unlawful?

mlz1413

geordie_ben wrote: »

sarah i do agree, but i thought i'd try and get some kind of facts together before sitting in a room and saying 'i dont know' when ever someone asked me a question.....

Your answer should then be ' I don't know but I'll find out'

Also if your answers to all questions are factual and informed your sister will know you have put in a lot of time and effort to this loan and will know she was excluded from the start.