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Buying Parents house.
Jessiepig
Posts: 211 Forumite
Any advice would be appreciated.
My dad owns his house but needs to go into sheltered housing. He would need to sell his house to buy a retirement flat ( not possible to rent one I've checked this ). Can me and my husband get a mortgage to buy his house at the same price as the sheltered flat and then rent it out to our daughter.
Thank you in advance
My dad owns his house but needs to go into sheltered housing. He would need to sell his house to buy a retirement flat ( not possible to rent one I've checked this ). Can me and my husband get a mortgage to buy his house at the same price as the sheltered flat and then rent it out to our daughter.
Thank you in advance
£2 saver club, over £200 now:
1p a day increase saving. Paid up to middle April
:j
1p a day increase saving. Paid up to middle April
:j
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Comments
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how much is the house worth compared to the flat?Don't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.0
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The house is about £250,000 and the flat about £180,000£2 saver club, over £200 now:
1p a day increase saving. Paid up to middle April
:j0 -
You need to read up on
"The rules for deprivation of assets - meaning the reduction of your assets by spending, gifts, certain investments etc - can be quite complicated and will affect your local authority means' test for care home provision."
Rent your daughter pays you is taxable. So the rent charged would need to exceed the mortgage in order to repay the capital debt owed.
Some lenders will not grant a mortgage where a family member is a tenant.
You would immediately incur capital gains tax on selling the property. If the value didn't drop.0 -
Are you intentionally stealing from your father or is there something else going on?
Is he mentally able?
What are you trying to accomplish ?
Could your daughter pay the "rent" that presumably would be equivalent to at least a £180k mortgage?0 -
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If you can afford the mortgage this should be possible, yet it is tricky.
You won't achieve this without the help of a broker.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
AnotherJoe wrote: »Are you intentionally stealing from your father or is there something else going on?
Is he mentally able?
What are you trying to accomplish ?
Could your daughter pay the "rent" that presumably would be equivalent to at least a £180k mortgage?
No I'm not stealing thank you. I am trying to do the best I can.
He can't manage a three bed house and needs a more manageable place with other older people.
He fully understands all the options and yes my daughter can afford the rent.
He can't rent because the council have told me there are over 13000 people on their waiting list and those that don't own their own home take priority so he would be right down the bottom of the list.
Just trying to work out the best for all of us to get my dad in the right place£2 saver club, over £200 now:
1p a day increase saving. Paid up to middle April
:j0 -
AnotherJoe wrote: »Are you intentionally stealing from your father
Bit harsh considering you don't know all the details.I am a Mortgage BrokerYou should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it.
This signature is here as I follow MSE's Mortgage Adviser code of conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.1 -
David_White wrote: »Bit harsh considering you don't know all the details.
Well, it sounds like they want to give him £180,000 for an asset he owns that is worth £250,000...0 -
It sounds like he wants to help his children and grandchildren, we don't know him, we don't know our poster.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.1
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