Help/Advice - Buying Property from Parent

tlc678910

Hi, I think perhaps you should take a step back and reflect on whether you are being fair a) in the pressure you seem to be exerting on your father b) in expecting that because you have lived in your fathers house (for possibly a peppercorn rent) his other children should not get an equal share of his estate. Perhaps because they pay extortionate private mortgages or private rent or work hard in stressful jobs they are less deserving? I am only playing devils advocate but I think it is important to put yourself in their shoes. In your opinion they don't "need the money" in my opinion it is important to treat your children equally (and you are already benefitting from under market rent) and I don't think I know anybody who would not appreciate inheriting 1/3 of a house.

Scratch beneath the surface and what is portrayed as wanting to buy the house for security and trying to be fair to all actually masks getting hold of it at way below market value and ensuring the other "children" are cut out.

On a more positive note a mortgage is hugely expensive because of the interest. I think you generally pay back about twice what you borrow. We pay £580 a month (on quite a low rate of about 2 and a half percent) and of this only about £250 reduces the actual capital outstanding. (Positive because you don't need one!)

Why not turn this whole problem entirely on its head, continue paying your rent -and save £500 a month (for example) into the best plans/ISAs you can find (without having to give half of it to the bank. You will be saving 6K a year which with compound interest will soon grow. In ten years this will of course be 60K before compounded interest which could make it much more (and of course much more than the same amount would pay off a mortgage). You could then reassure your father that you are taking steps to ensure that should the worst happen you will get the house valued and should be able to buy out the 2 siblings share. At the very least you would have a very hefty deposit/equity share with inheriting 1/3 of the house and your (by that time we hope) very considerable savings.

Put yourself in their shoes and give it some thought
Tlc

tlc678910

mrginge wrote: »

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?

The fact that you answered this post in a sincere manner must surely give you pause for thought?