Advice about buying parents house pls

Legacy_user

After hours of googling and no joy, I am hoping someone can give me some advice.

My parents have a small mortgage on their house and about 70% equity. Due to problems with their credit, they are unable to remortgage however they are in need of some money. I currently live with them and understand that I can buy the property off them however I don't have a deposit. Is it possible to buy the house, under the agreement that my parents are gifting the equity to me as a deposit? The house would eventually be left to me anyway.

Any advice would be much appreciated.

Trying_to_be_good

Babycakes - someone with detailed knowledge will be along shortly, I know you're trying to do a nice thing here.

I think there will be difficulties for you raising a mortgage if you parents will still be living in the property, and also if they should need residential care in the future they would have potentially deprived themselves of their asset by gifting you the deposit (even if they kept the rest of the sale funds). There is no certainty they would still have the asset to leave to you.

DVardysShadow

Besides 'deprivation of assets', you need to be aware that if you do buy this property, then the monthly commitment to the mortgage will almost certainly rule you out of any meaningful mortgage for a property of your own. So your life choices until your parents' demise will be:

• Remain living with them
• Be a rent slave
• Sell the house and make your parents rent

Factor in that given a good run, your parents could be around for most of your working life and I think you would be wanting to look for other solutions rather than giving yourself a huge problem.

Dave_Ham

Hi there,

There will be a solution here due to the equity. It may be you buying the home using the equity as a deposit, although this has many considerations including situation of any creditors, tax, future care needs, visibility to lender of situation.

These are just a few, although this can be done for sure. I would definitely advise to see a decent, recommended broker who can support you piecing this all together.

I would not rule out your parents being able to borrow in their own names, as large equity can mitigate some previous bad credit, no matter how bad.

Get all of your Experian and Equifax reports and get in front of someone credible.

Good luck