Help/Advice - Buying Property from Parent

amersall

If your partner was my Sister, there is no way either of you would deprive me of my share of the property on Fathers death.
There is nothing worse for bad blood when it comes to death and money, especially when there are Siblings.
I know this from first hand experience, it is not worth it.

Pixie5740

amersall wrote: »

If your partner was my Sister, there is no way either of you would deprive me of my share of the property on Fathers death.
There is nothing worse for bad blood when it comes to death and money, especially when there are Siblings.
I know this from first hand experience, it is not worth it.

It's up to the father to leave whatever he want to whomever he wants in his will. Although if he had any sense he would blow the lot and have a good time doing it.

NIckPayne

Pixie5740 wrote: »

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.

This is something that has been discussed between us and the father and would be ideal. We just wasn't too sure on the legal side of the matters and how it all works.

amersall wrote: »

If your partner was my Sister, there is no way either of you would deprive me of my share of the property on Fathers death.
There is nothing worse for bad blood when it comes to death and money, especially when there are Siblings.
I know this from first hand experience, it is not worth it.

This is exactly what we are trying to avoid. The 2 other siblings are only on the fathers side (i know this dosent matter but trying to show the whole story).

The plan made between my partners' mother and father before she passed was to stay married (even though they split up) and keep the house until either;
1) He passed in which the house would become her's (There was 30 years age between the 2)
2) After my partner moved out, they would sell and split the money.

So if anything at all, the father was only prepaired to recieve half the house.

I appriciate all the comments and advice. We are both young so all this is new to us.

mrginge

NIckPayne wrote: »

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?

Ok maybe send the heavies round to rough him up a bit then?

Someone needs to explain to him that he's messing you around and you don't need the inconvenience of having to wait for him to die before you get your hands on his cash.

Mojisola

Pixie5740 wrote: »

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.

This seems to be the obvious way to go.

You get the security of knowing the house is yours. You can sell up and move if you want to.

He ends up getting paid for the property so other children can't feel that they've been done out of an inheritance and there's no question of deprivation of assets.

As well as setting out regular payments, you should also decide what should happen if he dies before you have paid for the house. The remaining money will be a estate debt - perhaps you could build in a set time to allow you time to get a mortgage to repay the debt. Alternatively, if your partner is in line to inherit something from him, that could be adjusted so that the debt is taken off the amount she receives.

NIckPayne

Mojisola wrote: »

This seems to be the obvious way to go.

You get the security of knowing the house is yours. You can sell up and move if you want to.

He ends up getting paid for the property so other children can't feel that they've been done out of an inheritance and there's no question of deprivation of assets.

As well as setting out regular payments, you should also decide what should happen if he dies before you have paid for the house. The remaining money will be a estate debt - perhaps you could build in a set time to allow you time to get a mortgage to repay the debt. Alternatively, if your partner is in line to inherit something from him, that could be adjusted so that the debt is taken off the amount she receives.

Thank you for the advice. I think this way it will keep all the relevant people involved happy. We get the property we are living in and want from the beggining and our payments are an inheritance to the other children of the father.

Do you know if there is any complications with the amount agreed for the house?
Just as an example, the house is worth 150k yet the father is happy to accept half this amount (in payments). Or does the agreed amount have to be around the market value of the property?

Pixie5740

It's a private mortgage between the two parties. If the father wants to sell a property valued at £300k to you for £150k that your business, there's no law that says he has to sell it to you for market value.

The only time there might be an issue is if he requires residential care in the future. In that scenario the council might think he has deprived himself of £150k of capital. Those are a big "if" and a big "might" though.

missbiggles1

NIckPayne wrote: »

Thank you for the advice. I think this way it will keep all the relevant people involved happy. We get the property we are living in and want from the beggining and our payments are an inheritance to the other children of the father.

Do you know if there is any complications with the amount agreed for the house?
Just as an example, the house is worth 150k yet the father is happy to accept half this amount (in payments). Or does the agreed amount have to be around the market value of the property?

How can you say that he'd be happy to accept this when previously you've said he doesn't want to sell at all?

Mojisola

NIckPayne wrote: »

We get the property we are living in and want from the beggining and our payments are an inheritance to the other children of the father.

Do you know if there is any complications with the amount agreed for the house?

Just as an example, the house is worth 150k yet the father is happy to accept half this amount (in payments). Or does the agreed amount have to be around the market value of the property?

Your partner and you would be getting a gift of £75k in the example above. How are her siblings going to feel about that?

NIckPayne

missbiggles1 wrote: »

How can you say that he'd be happy to accept this when previously you've said he doesn't want to sell at all?

When i said he doesn’t want to sell, it was when i said we'll purchase the property off him, getting a mortgage from the bank, like any young person trying to get on the property ladder would do.

I don’t think he wants us having to go all through he bank route, that’s why the private way would suit both of us involved. Regular agreed payments to himself, some clause in place about the outstanding if he 'passes' before reaching the agreed amount.

Like i said in my very opening post, its a bit messy and confusing....