Buying Parents House for FULL Market Value

karenthemummy79

Hi - I am looking for some advice and to see if anybody can think of a solution.

We currently have our house on the market for 250k (hoping to achieve just under 250k) and have a mortgage of 160k... Had a couple of viewings but no interest as yet.

My Father in Laws house has been on the market for YEARS as a divorce settlement (MIL moved out 10yrs ago) and simply isnt selling because it needs renovating and MIL wouldnt accept offers that they have had. It is on the market for £199950 but I think it is worth no more than £170k in it's current state.

We are very interested in buying the house and doing the renovations and a possible extension as it is in the perfect location for us and would be willing to pay the full amount that a full structural survey quoted as it's value...(so long as it is no more that 170kish!)

All I can think is that we can't do anything until our house sells as we have equity that would be used to carry out the renovation work and without selling we don't have that money... can anybody think of a way that this whole thing would be possible without selling our house first as the ideal situation would be if we could do the work on the house while still having this house to live in and FIL could move in with us.

The other side of the equation is are there any legalities involved with buying a house from your parents?? They are late fifties and early sixties and both still working so it is nothing to do with care home fees etc... plus we would be paying full valuation.

Thanks in advance x

Yorkie1

If you pay at full market rate then there are no issues with regard to deprivation of assets re. care home fees etc.

However, I believe there may be difficulties if your FIL doesn't move out after selling it to you. Lenders don't like that scenario.

Hopefully others will clarify that point.

karenthemummy79

He would be moving out - he will be buying his own house. I just meant that if there was a way of doing it before our house that we live in now sells then he could move in with us while we do the work & while he looks for a house.

I didnt know if there was a way of coming to a financial agreement through a solicitor and then getting the house signed over to us without exchanging any money inititally so that work could commence but we would still be left with the problem that without our house selling, we won't have the cash in the bank to do it!

I guess the only way is to wait until our house sells and hope theirs doesn't sell in the meantime!

00ec25

karenthemummy79 wrote: »

ce but we would still be left with the problem that without our house selling, we won't have the cash in the bank to do it!

so that's all that matters then isn't it

hcb42

karenthemummy79 wrote: »

I guess the only way is to wait until our house sells and hope theirs doesn't sell in the meantime!

if its been on market for years then unlikely to sell immediately. Get your own sold, make sure it is priced competitively and it should go.

karenthemummy79

OK so say our house sells and we agree a price with his parents - what is the easiest/cheapest way for us to buy their house? will it be a normal purchase through solicitors and everything or will it be easier/cheaper to do it another way??

mah_jong

From experience - with a family buy out (not parental) it was done through solicitors.

It keeps things clean and above board.