helping out my kids

syddarthur

My son is 24 and a musician and is studying part-time on a music technology course. He has lived with his girlfriend for 2 years - she is 28 and a fashion designer and is gradually building up her business. They are a very creative couple but also struggling financially. They have been living in Bristol as its lots cheaper and there is a lot going on creatively however most of their opportunities are coming up in London and they are keen to move back to South London.

I have lived in South London for 8 years and have a 3 bedroom house with a mortgage of approx £105,000. I also have a daughter who is 21 and at college. I'm a nurse and working part-time so am also stretched financially. I am hoping to start a second job soon.

So I have an idea to help my kids out and provide them with a home. I know that it wouldn't be right to have them live with me as we would drive each other crazy but I have wondered about dividing the house into two flats so we all had our own space. Although I love the garden I would probably give them the ground floor as they have a big dog and would have easy access to outside space. I could have the 1st floor and could make one of the small bedrooms into a kitchen. There is also a big attic which could be used in the future if necessary.

I wondered how easy it would be to do this legally? Could I have their names added to the deeds? And how to do this financially, my idea would be to sell them a third (so there's some for his sister) and to use the money to make the changes. I would reduce the third as an early inheritence for my son. Is this a crazy plan?

BitterAndTwisted

Yes, it is a crazy plan. If they are struggling financially how do you propose they are going to be able to come up with finding the sort of sums required for a conversion like this? Even if you could get planning-permission and the agreement of your lender? Honestly, I do understand why you would want to help your kids but I wouldn't advise doing it and risking your own financial security at the same time.

lincroft1710

Firstly I didn't think Bristol was that cheap a place to live, although it is cheaper than London.

Secondly, even if you get past the planning and lender's agreement hurdles, converting the house will be expensive and messy, a loft conversion can be very costly because all the building regs which have to be complied with.

Jowo_2

I once had an architect visit to quote for my Victorian house in south London to be converted into two flats when my partner and I split up. The conversion wasn't going to cost much at all because the way that the property was set up meant very little structural change required to convert it. Handily, it already had a bathroom both downstairs and one upstairs.

However, it fell at the first hurdle because the local unitary development plan forebade the conversion of smaller houses (under about 130 square metres, I think) into flats.

"The council wishes to resist the conversion of small houses with gardens into flats, as this would reduce the availability of a type of housing accommodation for which there is a strong demand [in the borough]. Large and extended family households are more common within black and ethnic minority communities who suffer particularly from the lack of family sized dwellings."


In a way, I understand why there is resistance to houses being converted into flats (pressure on parking and so forth) but it is also going against the grain for higher density housing and the fact that smaller households are now much more popular due to the increase in single household families, divorce and widowhood, etc. It was making concessions to BME households who are typically concentrated in social housing in the area because generally, they earn less and are more welfare dependent. So what generally happens in my former street of pricey houses is that they are bought by white professional couples, often childless...

WhiteHorse

Unwise in every respect.

They have a 'big dog'? Money to burn then ... ? Want to come to London because it's 'more creative' ... ? Hmmm. Warning bells everywhere.

downshifter

I actually think this is a lovely idea but with lots of caveats and to get round those I'd be tempted to turn it into 2 flats as you say, BUT, let the other one to your 21 yr old daughter and move out somewhere smaller yourself, after all, if the house is that big do you really need so much space anyway for yourself? You could charge whatever rent you agree with to cover yourself and it would be fair on both kids. The house would still be their inheritance but I wouldn't be worrying about that at this stage. If you sell it to them, the value might go up over the years, would the equivalent for the sister go up too - it might all end up very unfair to her.

My reasons would be that even in a separate flat you would still see their day to day goings on, and as I've said elsewhere, my offspring have little idea of what it's like to seriously manage on a budget despite their frugal upbringing. And if I lived nearby, having helped them so much, it's difficult not to feel slightly like interfering, offering advice or plain feeling resentful when you see them spending 'your' money on a big dog or cafe lifestyle. Having said that, I'd still give my kids every last penny if it helps to set them up which is what you're suggesting (and I'm not just talking about bailing them out which is different). I have several jobs to keep the wolf from the door and that's fine, my needs are far less than theirs.

Financially and in lots of other ways it probably isn't at all wise, but maternally it's great, to me I know which is more important.

syddarthur

thanks folks, some good points there - seems like the majority thinks its unwise. I have a really strong urge to help them though so any fresh inspiration out there? Does anyone know of any affordable housing schemes in south london? Or any projects for artists? Cheers

Bullfighter

syddarthur wrote: »

thanks folks, some good points there - seems like the majority thinks its unwise. I have a really strong urge to help them though so any fresh inspiration out there? Does anyone know of any affordable housing schemes in south london? Or any projects for artists? Cheers

Get a job and rent a house?

Jowo_2

syddarthur wrote: »

Does anyone know of any affordable housing schemes in south london? Or any projects for artists? Cheers

Here is a Direct Gov link to low cost home ownership schemes which still probably require the applicant to have a demonstrable income, deposit and money for legal fees and stamp duty. Probably not a go-er for a part time student and newby self-employed.

http://www.direct.gov.uk/en/HomeAndCommunity/BuyingAndSellingYourHome/HomeBuyingSchemes/DG_4001347

I'm not aware of any cheap letting or sales property aimed at musicians and designers, though I'm aware that there are numerous non-residential studios purpose built for fine artists. Perhaps there are similar workspaces available for creative types that mean they can afford a cheap residential studio in south London rather than an expensive combined live-work space in a dear trendy area?

Otherwise, it looks like they are not going to get much change out of £265 per week for a live work studio in London or Kent borders.

http://www.gumtree.com/london/30/62284430.html
http://www.amazing-space.org.uk/whatsavailable.htm
http://www.lambeth.gov.uk/Services/LeisureCulture/Arts/VenuesPremises/WorkspaceStudios.htm

You could help them out by offering them the deposit and first month's rent on a residential let, and being their guarantor, but obviously that's risky if they get into arrears as you would be responsible for the entire duration of the tenancy.

hethmar

Try here:

http://www.southernhousinggroup.co.uk/Looking-for-a-home/

http://www.southernhousinggroup.co.uk/NewsAndResources/Latest-News1/2009/Kidbrooke-regeneration-gets-underway/