Buying a House From My Parents

Fly_Baby

Whatever happened to helping out the elderly parents in need?

OP, you say that you have job security for life, have your own house in Germany and can afford paying your father's mortgage. You can afford to just help out your father with no strings attached - and without forcing the man at his age to sell his home to some dodgy scheme or have to downsize and move out of the area? That's your family home too, would you be happy to lose it if he sells?

The house is potentially yours but in any case, however much you will have paid out in his mortgage payments is not going to come close to what your father spent raising you and never really expecting to benefit from you in the end of the day.

poppysarah

Fly_Baby wrote: »

Whatever happened to helping out the elderly parents in need?

The house is potentially yours but in any case, however much you will have paid out in his mortgage payments is not going to come close to what your father spent raising you and never really expecting to benefit from you in the end of the day.

he's not that elderly and I don't think bailing people out is always the best option. It may be in this case.

The house isn't anyones until it is. To make assumptions is wrong and families get broken up about this sort of stuff.

Fly_Baby

poppysarah wrote: »

The house isn't anyones until it is. To make assumptions is wrong and families get broken up about this sort of stuff.

My point exactly - no assumptons about the future, just helping out - now.

poppysarah wrote: »

he's not that elderly and I don't think bailing people out is always the best option. It may be in this case.

This isn't "people", this is OPs father. The man who raised him and as I said, who spent far more than that over the course of the OP's childhood. And who still accommodates the grown-up OP and his family when they are in the UK.

And it's not like this man lost his money to gambling or ran up a huge debt. He had a wage cut - could happen to anyone. And he could certainly expect his son's loyalty.

getmore4less

SSF_Bina wrote: »

His job has announced a massive wage cut
He does not have the option of moving firms (for several reasons but they paid for his working license and he cannot move for 3 years).

What would happen if he refused the wage cut?

If they sacked him they probably would have to release the ties to the licence.

Are other jobs that pay better going to be easy to find?

How much was he getting paid before, can you not just fund the shortfall to keep the rooms you use once a month.

Any smaller places he could move to, time to down size if income is going to be short long term and no help from family forthcoming.

re: the will and you getting the house, what is sister getting?

Jowo_2

SSF_Bina wrote: »

...
He does not have the option of moving firms (for several reasons but they paid for his working license and he cannot move for 3 years)
.

he should seek legal advice about the validity of this clause as it seems highly restrictive so he should check if it's enforceable.

Jowo_2

Fly_Baby wrote: »

...

And it's not like this man lost his money to gambling or ran up a huge debt. He had a wage cut - could happen to anyone. And he could certainly expect his son's loyalty.

There has been an increase in the number of posts by adult children who feel compelled to help out their home-owning parents that are hitting hard times.It's completely understandable for families to want to help each other

Sometimes those posting don't understand the impact on areas such as deprivation of capital, inheritance tax, access to means tested benefits and elderly care, family conflicts, problems getting mortgages for their family and so forth.

So there is a separate increase in the number of threads by posters who say 'help, I've taken over ownership of a close relatives property and there is x, y, z problem that we did not anticipate'.

That's why there are notes of caution whenever someone thinks that buying out a relative's property is a great fix because it can resolve a short term issue but cause other risks and issues that surface much later when circumstances change.

Fly_Baby

Jowo wrote: »

There has been an increase in the number of posts by adult children who feel compelled to help out their home-owning parents that are hitting hard times.It's completely understandable for families to want to help each other

Sometimes those posting don't understand the impact on areas such as deprivation of capital, inheritance tax, access to means tested benefits and elderly care, family conflicts, problems getting mortgages for their family and so forth.

So there is a separate increase in the number of threads by posters who say 'help, I've taken over ownership of a close relatives property and there is x, y, z problem that we did not anticipate'.

That's why there are notes of caution whenever someone thinks that buying out a relative's property is a great fix because it can resolve a short term issue but cause other risks and issues that surface much later when circumstances change.

Jowo, personally I understand very well all the implications you have listed. Which is why my post suggested that the OP could consider helping out his father unconditionally. I.e. without taking over his property, without taking over his mortgage, without turning into his father's landlord etc. etc.

What I thought a son could do is just give the oustanding amount (however much of his mortgage payment his father can no longer afford due to the wage cut) to his father monthly and that's it. No paperwork, no change of deeds - just a son's help. Out of love, for example?

Surely there are no legal implications in this scenario?