Taking out mortgage to keep father in house

JH78

Hi, I know the issue of buying into parents' home has been answered many times on here, but every situation is different and I'm looking for a little advice on mine:

My parents separated a number of years ago but are only just going through divorce proceedings. Essentially, my mother wants her half of the family's beautiful house, and my father of course wants her to have her fair share. The problem is, he wants to stay in the house for the next few years, but is currently just £40,000 short of paying my mother off.

He has suggested I (salary 30k, currently renting) could get a mortgage to cover the 40k, enabling him and my young brother (who has learning difficulties) to stay put for the time being. I see it as an opportunity to get on the housing ladder (sort of) and make a bit of money in the process when the house is eventually sold.

What I don't know are any legal implications or alternative solutions that might be better. Am I really benefiting out of this arrangement and are there pitfalls I should be aware of?

Oh yeh, and I have 14 days to decide, otherwise the judge will force the sale of the house.

BitterAndTwisted

You apply for a joint mortgage with your father and have a Deed of Trust drawn up to protect your £40k either as a flat sum or a percentage of the current value. But we're not necessarily in a rising market right now, so your £40k today could be worth less in a couple of year's time doing it the percentage way.

If your brother has learning difficulties and is a dependent what makes you think that selling the house at some undetermined point in the future would be a more attractive prospect for your father than it is now?

RAS

JH78 wrote: »

Essentially, my mother wants her half of the family's beautiful house, and my father of course wants her to have her fair share. The problem is, he wants to stay in the house for the next few years, but is currently just £40,000 short of paying my mother off.

He has suggested I (salary 30k, currently renting) could get a mortgage to cover the 40k, enabling him and my young brother (who has learning difficulties) to stay put for the time being. .

Your father needs to see a good divorce lawyer. Even if your brother is over 18 years old, the courts may well view a 50:50 split unsuitable if your brother lives there. They may well decide that your father needs more than 50% or that your mother only gets some of the money if your brother leaves the house permanently or when your father sells, dies or starts a new relationship.

By the way, this is not a foothold on the housing ladder as prices in most of the country are dropping.

JH78

Thanks for your comments, I'm very grateful for your help and they are more-or-less in line with my concerns.

One thing I didn't mention is that the house is in an area where according to the Land Registry for England & Wales, prices have risen 2.4% in the last year. Another point is that the house is currently listed for sale, and my parents' settlement is based on the highest bid, which is below the actual value of the house according to two estate agents.

A deed of trust will of course be drawn up as if my father decides he wants to stay put for life, I will want my money back!