How can I buy my dads house

dourdog

Hi all.
Even though I have been a long time lurker this is my first post. I hope some one will be able to help.

Background: My Dad put his house up for sale last year. Due to personal reasons he has a second mortgage on a second house and now wants to get rid of his debts as soon as he can. Renting/leasing to me will not be sufficient to cover some of his personal debt he needs to pay, and so is probably out of the question.

(Emotion: (feel free to skip: This was my Grandads house and I would dearly love it to stay in the family. The initial reason for the move from the house for my dad was to take the money and treat his partner, who had terminal cancer, to some amazing trips away. Sadly she died before the house sold and now 6 months later he is in crippling debt. - told you to skip it.)

Detail: We are not in an affluent area but I do get paid above the average. However I can only get a mortgage for about 75% worth of the value of the house, and i cant cover the remaining with a deposit alone.

So in short, I cant afford to buy it and he needs a lump sum soon to pay off other debts, the house is dropping in price roughly every two month which wouldn't be a problem (If we could both afford to wait.) however he has remortgaged so still owes a large amount. Is there anyway I can make this work? I thought along the lines of joint ownership / transfer of equity. Could this work? How would it work? Can you rent to buy from family or anything similar? Any other options?

Thanks for your time.

chris_m

Could you buy what you can afford and have the remainder covered by a private mortgage in your Dad's favour?

That's what I did when I bought this flat from my parents - took out a mortgage for around 70% IIRC and the remaining 30% was covered by a private mortgage between us, which I then paid off as soon as I could afford it.

dourdog

Thanks for the reply.
I don't know any thing about private mortgages. I will have to do a bit of research. thanks again though.

chris_m

As I recall with mine it was a document drafted by our solicitor along the lines of "X has advanced to Y the sum of aaa pounds for a period not exceeding 25 years from dd/mm/yyyy. Y undertakes to pay X interest on the outstanding balance of the loan at an annual rate of b% until the entire balance has been repaid."
This was then signed as a deed by both my parents and myself, witnessed by the solicitor.

This was recorded as a second charge on the property in the Land Registry Title Register, the first charge being in favour of the building society from whom my main mortgage was obtained - the building society had to be consulted to ensure that they were happy with the arrangement.

stator

Could you post more specific information:
How much debt does your father have secured to this house, and how much is it worth?
How much money does he absolutely need from the sale of the house?