Buying House From Relative

Yorkie1

I imagine that another option might be to get an independent RICS valuer to provide a valuation report, and for you then to buy it at that price. Saves putting it on the open market and EA fees?

LMCD

Hi, its me again..sorry I don't know if this is any help to you but we bought our flat from someone who was goin into a home and her kids helped her over see it and we paid a grand or two less than what was surveyed at the time.. I think its more or less up to the owner and or the attourney what they want to sell it for I mean if you can afford it I would go for it. I am sure it is do-able but I don't know if they will need to obtain a home report on it as its mandatory in scotland now to have one done and the surveys need done for banks approval on the lending etc (this you will know)...I know people are saying all the jargon and thats above me but am only just saying this as we bought our flat for under the survey etc.

Yorkie1

LMCD wrote: »

Hi, its me again..sorry I don't know if this is any help to you but we bought our flat from someone who was goin into a home and her kids helped her over see it and we paid a grand or two less than what was surveyed at the time.. I think its more or less up to the owner and or the attourney what they want to sell it for I mean if you can afford it I would go for it. I am sure it is do-able but I don't know if they will need to obtain a home report on it as its mandatory in scotland now to have one done and the surveys need done for banks approval on the lending etc (this you will know)...I know people are saying all the jargon and thats above me but am only just saying this as we bought our flat for under the survey etc.

Sorry but as others have previously said, it's not that straightforward when there is a power of attorney in existence and the original owner no longer has capacity to make decisions on their own behalf.

The attorney is legally bound to act in the best interests of the person they represent, and in the case of a house sale, that would include getting the best possible price possible for the asset. Doing anything other than that, would mean they were depriving the person of funds to which they were entitled.

LMCD

Yorkie1 wrote: »

Sorry but as others have previously said, it's not that straightforward when there is a power of attorney in existence and the original owner no longer has capacity to make decisions on their own behalf.

The attorney is legally bound to act in the best interests of the person they represent, and in the case of a house sale, that would include getting the best possible price possible for the asset. Doing anything other than that, would mean they were depriving the person of funds to which they were entitled.

I appreciate what you are saying but who would contest that this would not be the case? esp if they are beneficiary to the assets in future etc... plus the fact if it needs completely renovated and the existing market price could well be right a surveyor would need to clarify i assume..

Yorkie1

As has already been explained, the local authority would be interested for a start. The OP stated that the house "is currently worth around £75000, however her family are prepared to sell it to us for £50000 (due to the current market and the fact it needs totally renovated)." Admittedly this is ambiguous - would it be worth £75K if done up, or £75K in its current state.

Potentially, though, that's depriving the lady of £25K worth of assets - and you can bet your bottom dollar that the council will consider this amount of sale at undervalue to be reclaimable once the lady has exhausted her own savings (proceeds from sale of the house) - or the taxpayer ends up funding an additional £25K of care just so that the OP can get a bargain within the family (OP, this isn't meant as a dig at you, just illustrating a theoretical general point).

I am unclear of the finer points of the duties of attorneys but *if* I recall correctly, when you take it out, you swear that you will administer the affairs in the best interests of the person concerned - and the court will enforce that if you breach your fiduciary duty.

LMCD

Yorkie1 wrote: »

As has already been explained, the local authority would be interested for a start. The OP stated that the house "is currently worth around £75000, however her family are prepared to sell it to us for £50000 (due to the current market and the fact it needs totally renovated)." Admittedly this is ambiguous - would it be worth £75K if done up, or £75K in its current state.

Potentially, though, that's depriving the lady of £25K worth of assets - and you can bet your bottom dollar that the council will consider this amount of sale at undervalue to be reclaimable once the lady has exhausted her own savings (proceeds from sale of the house) - or the taxpayer ends up funding an additional £25K of care just so that the OP can get a bargain within the family (OP, this isn't meant as a dig at you, just illustrating a theoretical general point).

I am unclear of the finer points of the duties of attorneys but *if* I recall correctly, when you take it out, you swear that you will administer the affairs in the best interests of the person concerned - and the court will enforce that if you breach your fiduciary duty.

Thanks always good to learn something new.. it is rather interesting though as my neighbour across the landing is in the same predicament and its her kids in charge trying to do a private sale... not that she will know (poor dementia lady.. )

cdb07

Thanks for your replies. Although it initially seemed like a great opportunity for us, the last thing we want is to cause problems for the family further down the line, and i don't think it is right that we should benefit from a close family member's misfortune. As Yorkie rightly pointed out we do not want the council chasing her family for money they probably don't have.
I think we would feel more comfortable with ourselves if it went on the open market so that there could be no questions about the integrity of the sale.
As the old saying goes, if it seems too good to be true it probably is!!