Buying Parents Home to pay off thier debt and get me on property ladder??

lynzpower

sharkmark wrote:

I am in similar position and may well soon have to step in and bail out the in-laws - It all depends on your income as to whether you can afford to do this -I suppose in the end the asset will pass to you and at that time the house will probably be worth significantly more at that time.

An alternative to all of this is instead of buying the house for 60K wouldn't you rather just loan them some money in short term to cover repayments - they may get back on their feet in year or so - not really sure it's worth buying the whole house etc as tax may become an issue.

I personally wouldnt lend money to family who cant manage to afford the mortgage

Acc72

ginger_nuts wrote:

the other option for you to borrow £60000 but to put the house names .Both yours and your parents .This gives your parents security .

It may give the parents security - but it also gives them security to which further borrowing could be raised ...... if they already have debt management issues, then they may just get themselves into greater trouble.

Also, even if they don't borrow any more there is nothing to stop the parents from leaving "their" share of the property to somebody else in their will.

There may be some (expensive ?) legal way around this, but this transaction is a potential nightmare that could affect the son for the rest of his life.

LSC123

Guys thanks for all the comments, you have identified a load of issues which i havent even considered. i think it would be foolish for me to get a loan to help them out as it would probably only be a stopgap for a few years.

i need to consider it in a bit more detail and have a serious think re some of your comments

i just want to help them not end up in even more mess than they are in and thought that my idea would hepl that whilst investing some of my money at the same time. I would obviously treat is as an investment.

Any more thoughts/suggestions would be great..or advice on who i should speak to re my options (solicitor/bank/other?)

L

lynzpower

Honeslty?

I think you need to speak to your parents and find out why they are in arrears over thier mortgage?

Maybe you should direct them to the debt free wannabee board for support adn guidance on how to take control of thier finances. Its a godsend for so many. I suggest you have a look at it and maybe print off the budget planner and support them in making appropriate cutbacks,savings ( plenty of advice all over MSE ) and making extra money from selling things, or look at bankrupcy , an IVA or a DMP

LSC123

i'm 26

parents 57ish

i am single living (and Renting) in London, home is in N Ireland

LSC123

lynzpower wrote:

Honeslty?

I think you need to speak to your parents and find out why they are in arrears over thier mortgage?

Maybe you should direct them to the debt free wannabee board for support adn guidance on how to take control of thier finances. Its a godsend for so many. I suggest you have a look at it and maybe print off the budget planner and support them in making appropriate cutbacks,savings ( plenty of advice all over MSE ) and making extra money from selling things, or look at bankrupcy , an IVA or a DMP

Cheers...

I plan to chat to them when i go home over christmas; do you know where i could get more info on bankrupcy, an IVA or a DMP?

will check out the board too

L

lynzpower

All the info in on the debt free wannabee board or look at

payplan.co.uk

or cccs.co.uk