Parents buying me a house......

Oldernotwiser

geordie_ben wrote: »

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?

If you're genuinely puzzled, I'll leave it there. If it is a scam, be careful because you'll all be found out.

steveinhants

Hello Ben,

I have read this thread and IMHO you can't separate the debate into Business vs Emotional ties, no matter how hard you may try or would like to.
It's an incredibly generous offer that your parents have made you and they would obviously move Heaven and Earth to help you.

So, why not stay with them for another 2 years and bank what you are currently spending. That way you'll have enough for a deposit and legal fees.

Also, your parents sound like they don't mind taking a measured risk, so my other thought was that they sell up and invest their money into a property and renovate it and then resell it. With the capital they will have and the current property situation (even considering every other person in the UK is a property developer) they, you and your sister may get a nice return - and if not then you'd all still have a home to live in.

Those are my thoughts, but I'm a Son and a Father and I wouldn't sleep another night if I knew that my parents had sold their property so I could buy one. However, I'd also do anything for my children so I can see it from their side too.

I wish all of you luck, whatever you do - just remember not to lose your sister through this, because money can never buy you family.

Steve.

geordie_ben

steveinhants wrote: »

Hello Ben,

I have read this thread and IMHO you can't separate the debate into Business vs Emotional ties, no matter how hard you may try or would like to.
It's an incredibly generous offer that your parents have made you and they would obviously move Heaven and Earth to help you.

So, why not stay with them for another 2 years and bank what you are currently spending. That way you'll have enough for a deposit and legal fees.

Also, your parents sound like they don't mind taking a measured risk, so my other thought was that they sell up and invest their money into a property and renovate it and then resell it. With the capital they will have and the current property situation (even considering every other person in the UK is a property developer) they, you and your sister may get a nice return - and if not then you'd all still have a home to live in.

Those are my thoughts, but I'm a Son and a Father and I wouldn't sleep another night if I knew that my parents had sold their property so I could buy one. However, I'd also do anything for my children so I can see it from their side too.

I wish all of you luck, whatever you do - just remember not to lose your sister through this, because money can never buy you family.

Steve.

thanks for that Steve.

I dont think my parents would want to buy a house to do up, they've spent their lives working hard and now just want to relax

Unfortunately even if i banked my 'spending allowance' for two yours i dont think i'd even have enough to pay the fees never mind a deposit. once i've paid my bills and debt payments i dont leave myself very much to live on, but i know its going to be worth it in the long run

mlz1413

geordie_ben wrote: »

thanks for that Steve.

I dont think my parents would want to buy a house to do up, they've spent their lives working hard and now just want to relax

Unfortunately even if i banked my 'spending allowance' for two yours i dont think i'd even have enough to pay the fees never mind a deposit. once i've paid my bills and debt payments i dont leave myself very much to live on, but i know its going to be worth it in the long run

you are contradicting yourself - one post says you have £500-800 pm and now you say 2 yrs savings wouldn't be enough to pay legal fees.

Steve said stay with parents 2 yrs and save - which should mean from May 10 you will have £800pm or £9600pa savings - if your legal fees come to that then you need to lower your sights!

geordie_ben

I think wires have gotten crossed somewhere

my debt payment is £500-800 a month

steve suggested i bank my 'spending allowance' but this a very small amount so would not add up to much in the two years

steveinhants

No, I didn't say spending allowance. I meant bank what you shell out on your loan....i.e. £9600/year....

Two years of that plus a bit of interest and you'd have enough for deposit, fees and a bottle of Blue Nun to celebrate.

Steve

leveller2911

Just my opinion but there is more to life than owning a house.Your parents are getting older and will need the equity in the house in the future.

Your in debt, pay your debts off and stand on your own two feet. Work hard and save like most people do and if the time comes that you can afford to buy ,well good luck to you.If your not in a position to buy then rent and live a life.
Remember YOU don't OWN a house until the final mortgage payment is made,in other words few people really own their homes they are long term renting and one day they get the deeds to it.

The "stigma" of renting that strangely we have in this country will subside, given that fewer people will be able to buy in the future.


I have my own business and I have far more respect for people who have worked hard and set up their own business with no help ,rather than those who use "Mummy and Daddys' money", so have some self respect and do it yourself..

I wish you luck......;)

geordie_ben

Oh right, i thought you meant my spending allowance when you said spending

do you mean stay for another 2 years after my debt is paid off?

puddy

I think what steve meant was the amount that you currently pay on debt, so after may next year, you would be able to put away 500-800 per month, giving you at least 12k over the following 2 years for a deposit and some legal fees.


however, what im picking up from this thread, is that the OPs parents dont seem to want to stay in their current property or area. so an idea was formed that they want to rent for a while in a new area to see how they like it, what streets or districts they like, then maybe in a couple of years buying their own home again.

in the meantime, they have 100k knocking about and their son, would rather buy a place than rent a place like his sister does.

so the suggestion would have been, why doesnt he use the 100k in some way shape or form to buy the property, rent out some of the rooms to lodgers and use the monthly repayments to parents as a way for them to afford their rent during the time they are testing out the area.

i can see the pros of this, mortgages and mortgage interest costs a phenomenal amount of money, so why not agree a flat rate (not compounded) to pay back to the parents. why wouldnt that make sense to everyone

however, we dont know what will happen to this families circumstances a year or two down the line. one or both of the parents may become ill, need some money, they may see the house of their dreams and need access to the money, far quicker than the OP can raise a mortgage.
the OPs circumstances may change, meaning he may not be able to get a mortgage or pay back the money

an example of this is my own circumstances, we bought this place 4 months ago, i ported my mortgage from my previous property. we only borrowed what we needed. having moved in, i find the kitchen unworkable. so i want a new one. however, at the same time, i have decided to be sort of self employed, so i have no proof of income and need to use savings as a sort of cashflow until i get paid for work in some months time.

so i need to borrow money if i want a shiny new kitchen. so i ring the bank and ask to borrow more. they say its fine to discount my income and just count my partners as the mulitple is 5x his income and we are way under that, so no problems, until.... we come to the affordability. as they have to count my income as 0 (i cant prove future income), we dont meet the affordability section. so no further advance and no shiny new kitchen for me.

this is not an urgent thing, but if something happened that wasnt covered on insurance, we would have trouble. and so would the OP.

AND there is the moral thing here about borrowing from aging parents (we are assuming theyre on their last legs but they could simply be in their late 40s for all we know)
and the issue with the sister not having equal advantages coming her way

BUT that is for the family to deal with as they see fit, you may argue that you should parent in a way that meets the specific and individual needs of the children, maybe the sister doesnt need this advantage.

however, going back to the kitchen example above. my parents said they would lend me 12k. they had already given me 10k toward the house when we moved in. i was told that 10k would also be given to my sister when she wants to buy a house, in the not too distant future.
when i was offered the 12k as a loan, i asked if this was the amount that would be given to my sister. my dad said it was and that it didnt really matter if she wasnt able to have it at the moment, she isnt showing any signs of wanting to buy. ( i would have paid it back in 5 years)
however, i couldnt have lived with that, it has to be fair.

but thats my opinion.

steveinhants

Yes that's what I meant.