Lending moneyto parents for their house move

century_2

My parents (both in their 80s) want to move but given the sluggish housing market are likely to be ready to buy before they sell. My brother and I are (luckily) able to fund the purchase of the new property ahead of any sale - they are too old for any lender to provide a bridging loan. My understanding is that we should register a charge with the Land Registry against the current house (and possibly the new flat) and also lodge a document agreeing the terms of the loan and conditions for sale of the house with their solicitor. Does anyone have any experience of this process? We have another sibling and there are 3 grandchildren all of whom feature in parents will.

sooz

Why must they buy a house before they sell?

Do it in the usual order. Put house on market, wait for offer, then look for somewhere to move to.

Or get a bridging loan from you.

Would you really register a charging order against your parents? :eek:

If you distrust them this much, don't offer to lend them money.

And have you considered what would happen if their house doesn't sell for the amount you lent them?

PasturesNew

I agree with the OP that for most parents in their 80s it's best to buy, move, then sell. They really start to get doddery and it's not fair on them to have them wondering what's happening, when etc - and having to deal with viewings when they're set in their little routines.

It's what I plan to do with mine if I can. One lovely stress free moving day to the new place, then sort out the old place and get it on the market... let them enjoy their last years without the upset of a sale/move/purchase back to back dragging on for months.

tinkerbel

the charging order is probably in case of the worst and would mean they didnt have to pay inheritance tax on their loan repayment

Jenniefour

sooz wrote: »

Why must they buy a house before they sell?

Do it in the usual order. Put house on market, wait for offer, then look for somewhere to move to.

Or get a bridging loan from you.

Would you really register a charging order against your parents? :eek:

If you distrust them this much, don't offer to lend them money.

And have you considered what would happen if their house doesn't sell for the amount you lent them?

I don't think this is about not trusting the parents - its' about properly protecting the monies of the two siblings who are funding this in the event that the parents die prior to all this being sorted out. So, if that happens, there are no unseemly squabbles between those who are inheriting and the monies don't become part of the estate. What a mess that might turn out to be.