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Need some advice

SamGR
SamGR Posts: 55 Forumite
edited 12 April 2015 at 9:43PM in House buying, renting & selling
Hey i'm currently planning on moving in with my partner. Her father has offered us his home (rent free) as hes currently looking to downsize into a small flat and retire. He has some money saved already but needs another 30K. He's offered to take the loan out and we pay him back each month meaning once the loan has finished the property will be handed over to me and my partner.We would like some extra funds (20k) to upgrade the property and hes agreed to take out additional credit to help upgrade.

So i have just a couple of questions,

What would be the best way to raise the 50k?
Can we get a contract written up to help me protect my investment as i will also be putting alot of money in? if so how do i do it?
Who do i speak to initially to help me upgrade the house as it needs some major modernization.

Thanks

Comments

  • Kynthia
    Kynthia Posts: 5,692 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    If you pay your fathers loan in order to live in the property that he owns then you are renting it and he is your landlord. Therefore he will need to declare the money you pay to the hmrc as income, get an annual gas certificate, and comply with all other landlord requirements.

    Is there a reason you can't get a mortgage for £50k, give £30k to your father in order to buy the property from him and use £20k for renovations? Maybe talk to a broker about whether this is possible and how to work it with the lenders.
    Don't listen to me, I'm no expert!
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