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Co-owning abroad with parent - sharing the cost of buying??
LFCRulesOK
Posts: 2 Newbie
Hi all,
Sorry for the long post!
After a rather sour divorce, my father is now in set his heart in moving to Tenerife. He's a regular visitor there, 3-4 times a year, for over 10 years. He knows a lot of people out there, and is comfortable with the surroundings.
Out of the divorce, he's due to receive £90,000 to help with the permanent move to Tenerife. He's also got his pension, government + company, coming to approx £1000 per month.
He's currently choosing his options to hopefully live his life out there for the rest of his days.
One of the options which I put to him was me adding to his divorce fund with a cash sum of my own, giving him extra cash to be able to buy out in Tenerife rather than rent. I would be able to give him an additional £40,000, giving a total of £130,000 which should be able to find a good 1 bedroom property, maybe 2 bedroom in the right area.
Going down this path of "co-investing" in a property out of Spain, I see 2 main issues:
1) How do we bring together our joint cash to purchase a property without incurring extra taxes, and is a joint ownership of the property the only way to go. Or can I somehow "give" him the money and he purchases and own's the property in his name. Or should I somehow "receive" his money and pay for the property and the it's in my name. What would be the problems in me being a non-resident by co-owning the property. The whole "co-owning"/"co-investing" situation is a really mystery and there does not seem to be a lot of info out the on the net, especially as this is a CASH only purchase, no mortgages involved (I'm currently renting in the UK)
2) Once the funds are finalised, actually paying and purchasing the property. I have looked at using foreign currency companies to transfer the large sums involved from £'s to Euro's. Then with the addition of at least 10% fee's, solicitor's fee's, and leaving Dad with some spare cash, the £130,000 could end up being £110,000 to actually put towards the property. But that's also dependant on point 1) above!
There is of course the other choice of renting out there. Using his £90,000 to rent for the foreseeable future. This is not his preferred option, although if the cost and long term inconvenience of co-owning end up being too much, renting could be the only option.
Wow, lots of things to think about. I will be consulting a financial advisor about all this before decisions are made and money moved etc... However, I would like any help and advice from others so I can go to an advisor knowing a little more than the very little I know about the situation I am in now
Many thanks in advance,
Andy
Sorry for the long post!
After a rather sour divorce, my father is now in set his heart in moving to Tenerife. He's a regular visitor there, 3-4 times a year, for over 10 years. He knows a lot of people out there, and is comfortable with the surroundings.
Out of the divorce, he's due to receive £90,000 to help with the permanent move to Tenerife. He's also got his pension, government + company, coming to approx £1000 per month.
He's currently choosing his options to hopefully live his life out there for the rest of his days.
One of the options which I put to him was me adding to his divorce fund with a cash sum of my own, giving him extra cash to be able to buy out in Tenerife rather than rent. I would be able to give him an additional £40,000, giving a total of £130,000 which should be able to find a good 1 bedroom property, maybe 2 bedroom in the right area.
Going down this path of "co-investing" in a property out of Spain, I see 2 main issues:
1) How do we bring together our joint cash to purchase a property without incurring extra taxes, and is a joint ownership of the property the only way to go. Or can I somehow "give" him the money and he purchases and own's the property in his name. Or should I somehow "receive" his money and pay for the property and the it's in my name. What would be the problems in me being a non-resident by co-owning the property. The whole "co-owning"/"co-investing" situation is a really mystery and there does not seem to be a lot of info out the on the net, especially as this is a CASH only purchase, no mortgages involved (I'm currently renting in the UK)
2) Once the funds are finalised, actually paying and purchasing the property. I have looked at using foreign currency companies to transfer the large sums involved from £'s to Euro's. Then with the addition of at least 10% fee's, solicitor's fee's, and leaving Dad with some spare cash, the £130,000 could end up being £110,000 to actually put towards the property. But that's also dependant on point 1) above!
There is of course the other choice of renting out there. Using his £90,000 to rent for the foreseeable future. This is not his preferred option, although if the cost and long term inconvenience of co-owning end up being too much, renting could be the only option.
Wow, lots of things to think about. I will be consulting a financial advisor about all this before decisions are made and money moved etc... However, I would like any help and advice from others so I can go to an advisor knowing a little more than the very little I know about the situation I am in now
Many thanks in advance,
Andy
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Bump for evening readers :beer:0
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