Buying Parents house

secretgarden

I no long need advice on this thank you for your help.

poppysarah

So they won't lose their house by repossession ... but instead by selling it to you and your bf?

How does that benefit them?

Would them selling it for 150 (full value) clear their debts?
Does selling it for 100 clear the mortgage and their debts?

If they sell and are made bankrupt the house deal can be reversed.

And what if you and your bf fall out either with each other or your parents.

Lots to think about.

Jowo_2

If you take over ownership because your parents sell you the property, then your parents won't be paying towards the mortgage, as such directly, but paying you rent as lodgers because you will be their live in landlord. You can get a tax free allowance of around 4.5k per year under the Rent a Room scheme and pay tax on all rental income above that. however, should they not be in employment, they can never claim Local Housing Allowance (housing benefit) to pay their rent as this is never paid to close relatives that live with their landlord in the same property.

Why can't you buy the property from them at full market price which will give them some equity to pay off any debts they have, for example, and they move out into rental accommodation? How does your partner feel about being stuck with the in laws for the rest of their lives? What if you have kids, isn't it going to get a little overcrowded?

Also if they are seen to deprive themselves as capital by selling it for less than its value, then this could affect means tested benefits and services, like if they need to move into a care home (applies to england/wales but is probably different in scotland)?

secretgarden

I no long need advice on this thank you for your help.

poppysarah

Does selling it for 100 clear the mortgage and their debts?

Cannon_Fodder

From Age UK;

http://www.ageuk.org.uk/home-and-care/housing-choices/thinking-about-your-options/

http://www.ageuk.org.uk/Documents/EN-GB/ID8671_housing_options_inf.pdf?dtrk=true

Moving in with family

Moving in with family can seem like an attractive option
and in many cases works well. But it’s important for you
all to be realistic about what to expect.
Consider the practical aspects. What sort of care will
you need and who will be able to provide this for you?
Does the home need to be adapted?
You also need to be clear about financial and legal
arrangements. For example, will you pay rent or help
towards bills? If you live with a couple, what would happen
if they split up? What happens if one or other of you ends
the arrangement – for example, if you needed to move
into a care home? If you invest in your relatives’ property,
or purchase a property jointly, there may be implications if
you then have to be means-tested for assistance with care
home fees at some future point. Be sure to get separate
legal advice from your family and consider having a formal
agreement drawn up. It might seem awkward to discuss
things of this kind, but it is better for you and your family
to know what to do if the arrangement doesn’t work out.

Contact Elderly Accommodation Counsel (page 25) for its
free information sheet Living with family: points for older

people to think about.

Cannon_Fodder

Selling for full price, clears debts but leaves no money ?

So, selling for £100k clears some debts, but leaves £50k debt...

?

Something doesn't add up.

PasturesNew

It's statistically a recipe for disaster.

You and your bf (not even a husband) would own a house, then move out and your parents would live in it. What if you/he fell out? What if he begrudges being the mortgage holder, but feels it's not his home at all?

How will you afford to pay where you're moving to AND the £100k mortgage on your parents' house if they lose their jobs?

There are 1,000,001 things that could go wrong. You can probably find some yourself if you think hard enough.

What if you get pregnant and want a place of your own? What if your mum suddenly finds herself pregnant? What if your mum/dad dies and the other one moves in some annoying drunk/floozy?

What if you/your bf fall out ... and he moves a floozy in?

secretgarden

I no long need advice on this thank you for your help.

secretgarden

I no long need advice on this thank you for your help.

PasturesNew

Do you really want to live with them for life? What about them selling that at full price and putting down all the extra to BUY themselves a nice little place? You could get a small mortgage with your dad to achieve this, but then would be more free to go and make a life for yourself.

You need to consider the effect of any mortgage you take out now, on your ability to get another mortgage for yourself (if you wish) at some future point, say 5-10 years' time.