Buying house from relatives

LJW_2

Hi, another question from me. I am going to buy my grandmothers house who has recently gone into a care home. The proceeds of the house will pay for her care but my question is do I still have to go through the same process as i would buying any other house, eg solicitors and surveys etc?

Mrs_Optimist

IN a word - YES! The chain should be straightforward but if (and I assume you are) obtaining a mortgage to buy the house you will need both a solicitor and a Survey to satisfy the mortgage company.

DavidHM

Firstly, it depends on whether you are a cash buyer (i.e., no mortgage) or have to get a mortgage.

If you have to get a mortgage then your lender will want the same protections as they would with any other buyer - so the process for you will be more or less identical to anyone else's.

If you are a true cash buyer and you are comfortable with skipping surveys and title enquiries, etc., then by all means you are free to do so - although I would suggest that you should still get a solicitor involved to deal with the formalities of transferring the property into your name.

Don't forget that you don't get full protection until the property is registered in your name (otherwise your grandmother holds it on trust for you) after payment of Stamp Duty Land Tax (or certifying that none is payable) and any contract to transfer has to be in writing to be effective. These issues are best dealt with by a solicitor.

Is your grandmother physically or mentally infirm, for isntance - does anyone else have power of attorney? Will any other beneficiaries of her will want to know why you've got the house at the price you're paying - which is when your grandmother's mental capacity could be a particular issue. Your grandmother should also be independently advised so that there is no claim against you later on.

What would happen to her assets - presumably the money paid to her will still count towards fees or is this what you intend to happen? If you buy at an undervalue, will this cause problems for you with the council/health service in relation to funding your grandmother's care?

All of those are issues for which you ought to be prepared and where legal advice would be useful in any event.