Dad wants to buy Mum out of her share of the house, solicitor says no!

stanleymog

PNPSUKNET wrote: »

how can you decide how much he pays, and how he can afford to pay her. Other way is you get a mortgage for him?

We haven't decided how much he pays, he has come up with a figure he can afford to pay and one that my mum is happy to accept. He just cannot get a loan or mortgage at a sensible amount due to his age.


I did look at the idea of borrowing money for him, but with the current climate I cannot borrow much more on my present mortgage.

Ring another solicitor

That was an idea, but we wanted to see if it was possible before approaching another solicitor.

stanleymog

Emmzi wrote: »

put house in mums name with a secured tenancy to him and he pays her rent?

Hi,

Please could you explain this in more detail please?

CLAPTON

How old are they?

catfish50

How about if your parents transfer ownership to you and your siblings, then you charge your dad rent and pass the money on to your mum each month? Once your mum's share has been paid you can stop charging him rent and put the title back in his name.

LittleMissAspie

How about he just agrees to pay the rent on wherever your mum lives?

stanleymog

catfish50 wrote: »

How about if your parents transfer ownership to you and your siblings, then you charge your dad rent and pass the money on to your mum each month? Once your mum's share has been paid you can stop charging him rent and put the title back in his name.

That may work, but would a solicitor make it legal, i.e. proof that we wouldn't make him homeless and that we would transfer ownership?

How about he just agrees to pay the rent on wherever your mum lives?

In an ideal world that would work but my dad can be awkward and may change his mind!

catfish50

stanleymog wrote: »

... my dad can be awkward and may change his mind!

In that case it's fortunate your mum's solicitor is opposing informal arrangements and protecting your mum's interests. Selling the house and splitting the money may be the only workable solution which is fair to both.

CLAPTON

lets get it right

1. work out their total assets
-house
-savings
-investments
-high value items
-maybe cars

then
2. work out income flows
-state pensions
-occupational pensions


3. the starting point is that assets and income flows should be divided into two and they both end up with half the assets and half the income flows

you haven't given their ages but mayble they have 20-30 years left; many many things can happen in 20-30 years and both should expect an equal future

AL2009_2

There maybe few options open to you depending on (as mentioned above) parents assets/ pensions and depending on father's age and property value, Equity Release maybe an option.

It would be wise to see a adviser about this one as without seeing the full picture 'poor' suggestion maybe given which could be costly in the long run. Also maybe worth considering IHT planing at this stage.......

redpete

stanleymog wrote: »

To be honest, we haven't thought that far ahead.

You need to work out what both parties (and maybe the children but this is a lower priority, even irrelevant) want to achieve in the short, medium and long term and what needs to happen in various circumstances (either or both die, either or both need long-term care, either or both decide they do want to divorce and/or remarry, dad decides he does want to move after all...). What suits them today could easily mess things up tomorrow.

All these things and more will determine what is best to do about the house. It's likely to be complicated enough to need a solicitor to spend some expensive time trying to work out a solution.