Buying Parents house.

Jessiepig

MacMickster wrote: »

Your dad also needs to bear in mind that many retirement flats and sheltered housing come with eye-watering service charges, ground rents etc, so he may need to have a significant amount of savings to help to cover these charges in future years.

I take it that if his current home is in need of expensive repairs which have not been carried out that he doesn't have huge savings or excess pension income currently.

Yes we are aware of the additional charges and they do vary for different properties.
Yes he does have a good pot of savings and a good monthly pension, just he and my mum( when alive) just never bothered changing things, so the kitchen is falling apart and the house has no central heating. The rest is just very old dated wall paper and carpets.
It is double glazed and due to being caught on scams the driveway is block paved and the front garden is gravel !!!

Pixie5740

Jessiepig wrote: »

The best care is getting him out of a house where he is vunerable, having him in an environment where he has company around and is safer so I don't worry so much. He does understand what's hopefully going to happen and is fully happy about this. I constantly ask him.

Do you know how hard it is for young people to get Mortgages???.
Virtually impossible unless they have a huge deposit and her partner is also self employed.
I thought this all would be much easier but until you start looking for elderly care you will never understand.
I would sell the house in the future to pay for the best care home if that became necessary.
Don't judge if you don't know please

I am a young person with a mortgage. I also know lots of people my age and younger who are contractors with mortgages so it's not as difficult as you're making out. Your daughter would also have a deposit, she would have £70k of gifted deposit which is more than most young people buying a property have.

Surely the best care would be the sheltered accommodation and £70k in the bank for any additional care needs in the future. At the moment you're getting £70k from your dad and your daughter will be paying your mortgage. If your dad is insistent in giving £70k away he may as well cut out the middleman.

AnotherJoe

Jessiepig wrote: »

Do you know how hard it is for young people to get Mortgages???.
Virtually impossible unless they have a huge deposit and her partner is also self employed.
I thought this all would be much easier but until you start looking for elderly care you will never understand.
I would sell the house in the future to pay for the best care home if that became necessary.
Don't judge if you don't know please

People aren't judging,they are pointing out possible issues and ways round them.
If you did ever have to sell the house you'd immediately be liable for tax on an extra 70k (up to £20k) which you wouldn't be if your father sold the house for 250, gifted the 70k to your daughter and then she took a mortgage out.

So don't take these suggestions as hostile, but the best way to arrange things. As it is you'll pay a needless £5,400 extra when you purchase the house, and potentially an extra £20k tax when you sell the house.

It's also doesnt seem to accomplish getting your daughter a mortgage but perhaps I misread that and that's not the plan?

Moneyhelper

Jessiepig wrote: »

Moneyhelper, do you have experience of this situation as you have given me hope that it's all possible and I thank you for it.
Just need to speak to the right people now

Hi Jessiepig

I am a mortgage advisor for a high street bank and have done this a fair few times for people and it can be as straight forward as described. It is definitely becoming more and more common. Usually looking at one of these types of application 1 or twice a month and it is definately something a majority of lenders will look to do and there is nothing unusual about it. So dont worry!

The best course of action is to decide how you would like to proceed and also maybe worthwhile getting some advice from an accountant or solicitor in regards to the tax implication so you have the full picture. But from a lending point of view I cannot see any issues with getting the finance in place, pending a credit search and affordability check.

Jessiepig

Pixie5740 wrote: »

I am a young person with a mortgage. I also know lots of people my age and younger who are contractors with mortgages so it's not as difficult as you're making out. Your daughter would also have a deposit, she would have £70k of gifted deposit which is more than most young people buying a property have.

Surely the best care would be the sheltered accommodation and £70k in the bank for any additional care needs in the future. At the moment you're getting £70k from your dad and your daughter will be paying your mortgage. If your dad is insistent in giving £70k away he may as well cut out the middleman.

It might be easy where you live in Scotland but in the South East of England, most young people are struggling to get mortgages. I know loads that are living with their parents as they are desperately trying to get a deposit against prices rises.
Yes he could gift her the deposit but on her and her partners earnings they would never get a £180000 mortgage even though it would cost them less than the rent they currently pay!.
Both my husband and I would deal with any future care needs,that's not the issue here

Jessiepig

Moneyhelper wrote: »

Hi Jessiepig

I am a mortgage advisor for a high street bank and have done this a fair few times for people and it can be as straight forward as described. It is definitely becoming more and more common. Usually looking at one of these types of application 1 or twice a month and it is definately something a majority of lenders will look to do and there is nothing unusual about it. So dont worry!

The best course of action is to decide how you would like to proceed and also maybe worthwhile getting some advice from an accountant or solicitor in regards to the tax implication so you have the full picture. But from a lending point of view I cannot see any issues with getting the finance in place, pending a credit search and affordability check.

Thank you so much for some positive advice. People do not know our situation and are judging accordingly. I will speak to my bank and get some legal advice too.:)

Moneyhelper

No worries, hope all goes well for you.

Pixie5740

A part of Scotland where you can't buy a house for £250k or sheltered accommodation for £180k.

Why speak with your bank? An independent mortgage broker has access to far more mortgage products. Your father should also have his own legal advice.

getmore4less

Gifted deposits should form part of the disposal/aquisition costs for connected parties

Any future CGT should be based on market value.

fewcloudy

AnotherJoe wrote: »

People aren't judging,

Lol! Says the same clown that 2 days ago asked; "Are you intentionally stealing from your father?"


fc