Buying a home with parents living together

steve07866

We want to buy a home with our parents and live together. After much discussion and lots of advice etc we were told to get 4 way mortgage and our parents will be non-contributers as its mine and my husbands mortgage to fund our part. My parents are putting in £160k cash us £50k cash and an approx £135k mortgage. This was as advised by our solicitor.
No mortgage company will touch it. A couple agreed but only on a short term basis as my father will be the lead name due to his age.
The solicitor cannot understand why this is such a problem. All the companies advised my parents gift me £160k first but the solicitor says no solicitor worth his weight will advise my parents to do this as they then have no rights over the house and no right to live there. Obviously I would never put my parents in such an awful situation but I agree I want all angles covered for all eventualities and my parents money, and mine protected.
As always we have found a house we like but cant do anything as we cant get the mortgage we need to do it.
My father will be 65 next year and is retiring my mother is 57. They want to enjoy the grandchildren, help us all with better quality of living, ie nice house etc shared bills and be there to watch children grow up and help with childcare. I with a nursing background want to care for them in old age.
Any advice welcome please

Old_Git

I know nothing but surely the mortgage should be based on your income .
Is it possible to get the parents names on the deeds but not the mortgage .

00ec25

Old_Git wrote: »

Is it possible to get the parents names on the deeds but not the mortgage .

plenty of posts on here from mortgage advisers saying all owners must be listed on the mortgage otherwise the lender would have difficulty repossessing as they would have no power over a non liable owner

the fact parents are putting a significant sum into the property would give them rights to it even if they were not on the mortgage hence the conflicting advice from the solicitor over the 160K and gifting

Note, if parents did gift 160k to the children and then lived in the house with them, the parents would fall under the Pre Owned Assets tax rules meaning that if the rental value of the property was more than £417 pcm the parents would be charged income tax every month unless they paid rent to the children for the rest of their lives

TBagpuss

It may be possible to look at a situation where you own the property but there is a declaration of Trust stating that you hold as trustees for yourselves and your parents.

Another possibility may be for your parents to lend, rather than gift you the £160K and for them to be protected by a (second) mortgage. This would require the consent of the first lender.

Pandilex

When I tried to get a mortgage (santander) they simply said if your parents give you any money for the deposit, they have to sign a document stating it's a gift, they don't want or expect it back, and they understand they will have no ownership or rights to the property whatsoever.

Just get your parents to give you the money, and tell them it was a gift from your parents. With a 200k deposit you should have no problem securing a mortgage for 135k. I have half that deposit and my principle mortgage is up to 175k (in my name only). Much of my deposit is a 'gift' from my parents (they don't want it back - it is an honest gift - they just want the money to be used in a way that benefits our family rather than generating 0.5% interest in a crappy savings account or whatever).

00ec25

Pandilex wrote: »

Just get your parents to give you the money, and tell them it was a gift from your parents. .

you have not read the question properly. The parents will be living in the house, that changes the situation entirely from the normal position which you are recounting where bank of mum and dad helps you to buy but has no interest in the house