Buying my parents flat

carjack001

I know there are threads with similar content but none that covered exactly my situation.

My dad lives on his own and has a mortgage of £8k on a flat worth £60k. He has recently been made redundant and cannot afford the mortgage payments.
My dad would be happy for my brother and I to pay off the mortgage and take ownership of the flat with him living rent free.

We would not require a mortgage for this.

Can we do this legally? Would there be any tax implications etc.?

terryw

carjack001 wrote: »

I know there are threads with similar content but none that covered exactly my situation.

My dad lives on his own and has a mortgage of £8k on a flat worth £60k. He has recently been made redundant and cannot afford the mortgage payments.
My dad would be happy for my brother and I to pay off the mortgage and take ownership of the flat with him living rent free.

We would not require a mortgage for this.

Can we do this legally? Would there be any tax implications etc.?

Perfectly legal. No tax implications except if he has other assets which appears unlikely.

terryw

If your Dad had to go into nursing home there could be problems about the fees as he has given away his house.

ILW

If it were me I would pay him substantially more than the 8k outstanding on the mortgage. Making a £52k profit out of your own father sounds a bit mean.

carjack001

No, he is not going into a nursing home and, no, he does not have any other assets.
Thanks for the advice.

One more thing. Would we be able to rent it to him and the DSS foot the bill? Or would that be taking the total pi*s?

lizzielondon

yes that would be taking the p

i doubt you can get benefits if you've just given away £52,000

why do you think it's fair to pay £8000 for a £60,000 property?

if you want to buy your father's flat surely you should pay him the market price?

carjack001

Forget the comment about the rent. That was a bit tongue-in-cheek.

We are paying off the mortgage to ensure that he has piece of mind that he cannot have the flat repossessed and has no financial worries. Yes, he could sell it for the full value but, he would have to do some work to it to get it into a selling condition, he would have to pay estate agents initial fees and a home report fee and, he would then have to find somewhere else to live. None of which he wants to do.

lizzielondon

why don't you help him with his mortgage payments instead?

poppysarah

carjack001 wrote: »

Would we be able to rent it to him and the DSS foot the bill? Or would that be taking the total pi*s?

Erm.

Let me see now.

Yes.

Give him the 8k and let him have his flat. Although if there's repairs and service charges can he manage to pay them too.

Don't "buy" your dad's flat - he needs it to live in.

Person_one

If you can afford to pay your dad's mortgage, and your main concern is his wellbeing rather than your own pocket, then just pay the mortgage and don't take his house off him.

You'd essentially be asking him to hand over 52K of equity that he's worked for over many years because he's desperate right now. If anyone else tried to do that to your dad I expect you'd be furious. I would.

lizzielondon

this seems too silly i think he's a troll