Help/Advice - Buying Property from Parent

NIckPayne

Hello,

I'm looking at trying to get some advice on a complicated situation. I will try to keep things short and simple.

Current Situation
Myself and my partner are living in her father’s house. The house has no mortgage and we pay him a small amount of money each month as rent (verbal agreement).

Her father has never lived in the property. My partner lived there with her mother for 12+ years. Her mother passed away suddenly at a young age and i decided to move in. With no written will on the mothers’ side, the property was then transferred into the father’s name.

We have lived this way for 2 years now while i have settled into a stable and secure job. We are now in the position where we want more security on the property as we want to start a family in the future.

My first initial thought was to purchase the property from the father, potentially at a price that is below market value.

Her father however, has said that he does not want us to get a mortgage and will leave the property to us in his will. (He is in his early 70's). I'm not comfortable with this situation as it leaves no security for an unknown amount of years and I also don’t want there to be any complications with any siblings related to my partner.

Another option talked about was having an agreed fixed monthly payment, like a rent, and he will sign the house over to us. The fixed monthly payment would act as an inheritance to the other siblings (much older and more stable life than me and my partner).

I know the situation is a little messy, and while we were young it suited to us due to just starting out in work. Now we are older, we need security on the place we are living to be able to move on in our lives.

If anyone has any help or advice on what situation we should take next would be much appreciated.

HappyMJ

If you want security in the form of home ownership then find a house to buy and move into it otherwise just leave everything as it is. What he does with his house is his concern. He probably doesn't want the cash in his account where it could potentially be run down to nothing and prefers the security of owning a home himself. I know I would and I wouldn't sell either.

NIckPayne

I know moving and getting our own place would be the easiest option but the house is perfect and trying to find something similar in the right area would be very difficult.

If he is a man to his words and the house is left entirely to us in a 'will'. What potential problems could occur from that? Could other children have any right in ownership to the property even if it was left to us?

We are just looking at all potential options and outcomes.

kingstreet

Assuming he has capacity, he should be embarking on a family estate plan (combination of will and trust) to ensure his assets go where he wants and are protected against care fee depradation and future partner claims at his or offspring level.

As things stand, a will can be challenged and a deed of variation/family arrangement be agreed to undo your bequest.

Daniel54

NIckPayne wrote: »

I know moving and getting our own place would be the easiest option but the house is perfect and trying to find something similar in the right area would be very difficult.

If he is a man to his words and the house is left entirely to us in a 'will'. What potential problems could occur from that? Could other children have any right in ownership to the property even if it was left to us?

We are just looking at all potential options and outcomes.

The biggest potential problem I can see is if he needs residential care in the future.In that case he might be obliged to sell the house to pay for it .If push comes to shove and he has no other assets,the local authority can compel him to sell it.

The other children would have no rights of ownership if the property were left to you,but these matters are always much better dealt with and discussed in advance to avoid possible bad blood.

Are you married ?.He may be concerned what would happen if you divorce or your relationship breaks up.

NIckPayne

Thanks for the replys.

We are getting married next year and this is why we would like to get this situation sorted, whatever the outcome.

Leaving the property to be decided by a will sounds too risky, wheter it is challenges from others or like Daniel mentioned, complications if he needs residential care in the future.

So the only other 2 options i can see is;
1) Purchase the property from him
or
2) If it can be done (advice would be welcomed), would be to have the property signed other to my partner (his daughter) and a payment scheme agreed? Can this be done?

mrginge

Hi,

Is there any way you could get power of attorney over his financial affairs, then it will be much easier for you to decide what you want to do with his money without having to bother asking him?

NIckPayne

MrGinge, I dont think that would work.

He lives in another property with his partner (not married), so if anyone would get control of his financial affairs if something were to happen it would surely be the partner?

Brock_and_Roll

NIckPayne wrote: »

Thanks for the replys.

We are getting married next year and this is why we would like to get this situation sorted, whatever the outcome.

Leaving the property to be decided by a will sounds too risky, wheter it is challenges from others or like Daniel mentioned, complications if he needs residential care in the future.

So the only other 2 options i can see is;
1) Purchase the property from him
or
2) If it can be done (advice would be welcomed), would be to have the property signed other to my partner (his daughter) and a payment scheme agreed? Can this be done?

In either situation, Deprivation of Assets would still be an issue should any sale/transfer be done at below the current value of the property. Local Authorities these days have an obligation to protect taxpayers cash - so they are pretty hot at spotting these transfers should the OP's father need means tested benefits at some point.

Given the complications the OP has outlined, I would advise the father to seek professional advice.

Pixie5740

If he does not want to sell you the property you are on a hiding to nothing.

If the only stumbling block is that he does not want you to have a mortgage (from a bank or building society) then you could set up a private mortgage with him. He transfers ownership of the property to you and your soon-to-be-spouse and has a charge on the property. You would also need a document drawn up that says something along the lines of the charge being removed after making £X of payments for a set term.

If that is a route you go down then each party should get financial and legal advice.

Stevie_Palimo

Simply purchase another property ie:- a cheap flat rent it out and then stay in the place you are living in.