Buying Parents House

whambam

Hi,

Has anyone been down this road what is the process if a house has been paid off and the son or daughter wants to own the house after his/her parents have passed away?

Thanks.

kingstreet

Not a very clear question.

The obvious answer is they leave it to you in their will, but the thread title "Buying Parents House" would then be redundant.

Care to expand a little on what you actually want to do and why?

whambam

Simply want to own the home under my name on the title deeds as the home has sentimental value that cannot be sold for money. I intend me and my partner and children to live here in the future as its the perfect location in the city there is no need to move home.

Someone on here must have taken over their parents home after their time or parent had to go into a care home hear it all the time usually they sell off the property, but I don't want to.

onlyroz

So you are offering to pay your parents' care home fees yourself should the need arise? Very generous of you.

CLAPTON

very unclear

if your parents are alive and you are their sole heir then they simply leave the property to you in their will (or even without a will it becomes yours)


after they have decease and probate is obtained and any IHT paid, you simply transfer the title into your name by contacting the land registry


if you are not the sole heir then maybe tell us a little more about the situation

antrobus

onlyroz wrote: »

So you are offering to pay your parents' care home fees yourself should the need arise? Very generous of you.

Interesting.

The OP did ask "what is the process if a house has been paid off and the son or daughter wants to own the house after his/her parents have passed away? "

I'm of the opinion that the dead generally speaking don't require care and that the fees are therefore non-existent.

(Mind you, I'm still not quite sure where the OP is coming from.)

onlyroz

antrobus wrote: »

Interesting.

The OP did ask "what is the process if a house has been paid off and the son or daughter wants to own the house after his/her parents have passed away? "

I'm of the opinion that the dead generally speaking don't require care and that the fees are therefore non-existent.

(Mind you, I'm still not quite sure where the OP is coming from.)

In their next post the OP referred to care home fees and how they would prefer to keep the house if care was required.

antrobus

onlyroz wrote: »

In their next post the OP referred to care home fees and how they would prefer to keep the house if care was required.

You mean;

Someone on here must have taken over their parents home after their time or parent had to go into a care home hear it all the time usually they sell off the property, but I don't want to.

There's no difference between the OP buying their parents home and someone else buying it from the point of view of care home fees.

(I just thought my post was a humorous way of pointing out the irrelevancy of your original remark.)

Yorkie1

1. If your parents choose not to sell it to you during their lifetime, then they must leave it in their will.

a) if left to you then nothing more to be done.
b) if left to you and other beneficiaries then you'll need to buy them out if they agree.
c) if left to someone else you'll need to buy it off them if they agree.
d) if not specifically left or there's no will then it will probably need to be sold by the executors - you could bid for it.

2. If you want to buy it from them at the point they go into a care home, then:
a) if bought at an undervalue, they will be treated as though they had received the full market value for the purposes of assessing what their assets are / receiving state help to pay for the care fees.
b) in that situation, depending on the overall IHT position and how long they live after the sale, there may well be an inheritance tax issue for their estate.
b) if bought at full market value then no other implications.

3. If you want to buy it from them and they continue to live there:
a) if you pay an undervalue, they will be treated as if they had received full market rate for the purposes of claiming state means-tested benefits and/or subsequent care fees.
b) also there will be inheritance tax issues (subject to overall IHT position) because they remain living there after the sale at undervalue.
c) if you pay full market value then no issues as such.
d) if you need a mortgage to buy it, I think it will have to be a regulated BTL because family are living there. That's even if you can get a mortgage because the former owners will continue living there.
e) if you receive any rent or payment in kind from your parents, you will become a landlord with all the legal duties and responsibilities associated with it e.g. gas safety certificate, electrics safety, income tax.
f) if your parents will need housing benefit, they won't get it.
g) if you get into any form of financial difficulty, or divorce (assuming you're married), or die before your parents, then your parents' home is at risk.

For your parents, there really is no upside to option 3. If you're trying to circumvent paying the care fees then the state is wise to this sharp practice and it will backfire onto your parents.

whambam

I DO NOT want to put my parents in a care home as I said like some people do because of circumstances.

I understand that if you have no will, the property gets shared by all the children if no children then relatives.

Question is how can I be the homeowner while my siblings live elsewhere? Do I simply pay them a share each off the market value of the property at that time to own the home?

Let_Us_See

Unless your parents leave the house to the local dogs home you may have the opportunity, either as part beneficiary or even as a non-beneficiary, to purchase the property from the sole or joint beneficiaries. However, unless the property is bequeathed outright to you there are no guarantees you will be successful.