Advice on selling parents house and ours to buy a larger house for us all.

t-1000

Hi All

Just after some general advice with regards to the feasibility of selling two house to buy one larger house.
The situation is my girlfriend's father is 76 and has a 3 bedroom semi which he owns outright, we have a 3 bed semi 4 doors up from him which has a mortgage on. The houses are worth approx 140 to 150K at a guess. My girlfriends mother passed away and she is his only child and is the sole beneficiary.
So we were thinking of selling both houses and then buying a larger 4 to 5 bed house with a double garage so this could be converted to living space for said father value probably upto 300k.
I just wondered if anyone has been through this process and the implications tax etc. He will be below the IHT threshold though he does have some savings. Logistically how would you go about selling two houses I'm assuming we would have to sell one and then the other after as they are so close I doubt we would sell the two quickly.

Thanks in advance

Annisele

Is the "we" that's thinking of doing this you + girlfriend, or you + girlfriend + FiL? The current situation (with you very close, but not under each other's feet) sounds pretty good to me.

Will you need a mortgage? (I'm assuming FiL's "some savings" aren't enough to let you buy the new property outright).

If you'll need a mortgage at all, this will be very difficult. Generally, all joint owners have to be named on the mortgage - and FiL will be too old for the majority of lenders.

If you do buy together, would you consider something with a granny flat rather than undertaking the costs and risks of conversion?

TBeckett100

So you are using his money to buy a 5 bed and then you are going to thank him by sticking him in the garage?

Only his money is welcome past your front door lol

I would say that whilst it is a good plan, dare I say irs taking advantage a bit.

Pricivius

It's a lovely idea, but please consider some worst case scenarios, just so you all know where you stand, such as:

- You and girlfriend split up. You may need to sell up to release your equity, thus putting an old man out of his home. How much is your equity? How much does FIL own?

- FIL needs to go into care. He has £150k+ tied up in the house. Can you pay his care home fees? How long for?

- You and girlfriend have kids. FIL is increasingly intolerant and belligerent, shouting at your kids and banging on walls.

- FIL hates living with you and wants to move out, with his cash.

just a few to ponder...

Just a few to ponder...

dragonsoup

We sold two houses simultaneously in order to do the same - it was a complicated chain and stressful but simultaneous exchange on the two houses to be sold and the purchase was achieved.

The ailing in-laws suddenly developed a new lease of life once released from the responsibilities of home ownership and decision making and both lived well beyond expectations - we had them in the annexe for nearly 20 years from mid 70s to mid 90s! This could be a very long term commitment on your side.

slopemaster

annisele wrote: »

the current situation (with you very close, but not under each other's feet) sounds pretty good to me.

+1........

t-1000

Hi Thanks for the replies, gives us some things to think about, the main reason we were thinking about this is that he is disabled and we are his only family. We already have a child who he adores and we have another on the way, my girlfriend does everything for him washing/cleaning and cooking etc so it is hard for her and would be easier if we lived in one property. He would benefit immensly as he would have more company because he does get lonely as he does not go out unless we take him. As for shoving him in the garage he certainly would not be left on the cold floor! We would convert the garage as he is struggling with the stairs. Properties with annexes are rare in the area we are looking but often double garage properties have had one side converted and we would then convert the other side. Anyway thanks again.