Retired parents renting their house from me and cannot afford to pay

missbiggles1

Tammykitty wrote: »

How many people on here complaining have been had parents help the with deposits for houses, have had parents pay for their wedding etc - should all these be counted as deprivation of capital in the future - even if its 40 years later?


Yes the OP has been given a gift of £75,000, but as he is paying £700 a month, I am guessing the mortgage he has is about £150k.


The son has taken on £150k of debt he didn't need too and paying this mortgage will actually cost £210k (depending on rates etc), so he isn't actually making much (if anything) from this deal - he gets a house worth £225k for £210k - its not that much. (And the parents are not currently paying rent)


Hindsight is a wonderful thing, and with the benefit of hindsight, the OP may not have done the same thing.


The intention was never to rely on the public purse, and as has been said, his parents are unlikely to get housing benefit, so won't be relying on the public purse.


The OP has now stretched himself further with a longer term mortgage so that his parents get to stay in their family home.

Where are you getting those figures from? The OP said "So lets say the house was worth £150k, I had to get a mortgage for £75k as that is what they still owed."

agrinnall

missbiggles1 wrote: »

Where are you getting those figures from? The OP said "So lets say the house was worth £150k, I had to get a mortgage for £75k as that is what they still owed."

Making them up to fit her case...

lazer

missbiggles1 wrote: »

Where are you getting those figures from? The OP said "So lets say the house was worth £150k, I had to get a mortgage for £75k as that is what they still owed."

£700 mortgage repayment for £75k mortgage seems very high!

cells

They gifted you £75,000 in equity and you are complaining about £200 a month?

Pay the £200 a month out of the £75,000. Unless they are going to live to be over a hundred you are still better off

AdrianC

lazer wrote: »

£700 mortgage repayment for £75k mortgage seems very high!

Think about how sub-prime this mortgage is going to be, with a borrower with low income and a tenant who "isn't paying rent"...

p00hsticks

cells wrote: »

They gifted you £75,000 in equity and you are complaining about £200 a month?

Pay the £200 a month out of the £75,000. Unless they are going to live to be over a hundred you are still better off

You don't seem to understand what equity is ...
The OP hasn't actually received any money from the transaction - in fact, they've taken on a £75,000 mortgage debt.

The equity in the property (house value less mortgage owed) would only be available if and when the property is sold and that's what both the OP and his parents are tryin to avoid doing...

Lazarus_Blackstar

A very interesting read with lots of opinions & sound advice.
I do hope the OP wakes up & smells the coffee and makes the right choices for him & his family.
Otherwise there is sure going to be a more hardship & heartbreak in the near future for both him, his wife, kids & parents. So many people will have their life crumble before their eyes if this mess doesn't get nipped in the bud.
I very much doubt he will report back on here though, for fear of being battered down.

missbiggles1

p00hsticks wrote: »

You don't seem to understand what equity is ...
The OP hasn't actually received any money from the transaction - in fact, they've taken on a £75,000 mortgage debt.

The equity in the property (house value less mortgage owed) would only be available if and when the property is sold and that's what both the OP and his parents are tryin to avoid doing...

Just as is the case with most of us who have mortgaged homes, the equity is still there, whether you can get hold of it immediately or not.

xylophone

Nobody can deny that the OP found himself in a difficult position between
financing his own home and family and supporting his parents.

My father remortgaged his house to fund his building business

Having remortgaged and only paying interest on the property the time came on his 70th birthday where the bank said we want the mortgage paid in full now. Which he couldnt do, for my mothers sake as the long suffering wife (baring in mind he didnt tell her that he remortgaged the house).

The reason the £200 a month is difficult for them is that that they do have debts they are having to pay, as well as the fact my dad was incorrectly paid more than he should of as he didnt declare certain things (although he did not know to declare them). Common theme here is that my dad, as much as I love him, has destroyed our family in some respects. So they are taking a huge chunk of his pension to pay for what he now owes them

.

He wanted them to remain in their own home but it was unfair of his parents to expect their son to mortgage his future because of their (or rather his father's) mistakes.

It also seems unreasonable of the OP to propose that the taxpayer should provide his parents with HB which in effect even if not passed on to the OP would be used by his parents to repay their debt to the state?

That is to say, the creditor would be giving money to the debtor to enable him to repay the creditor money already owed!

It might be possible to approach a housing association to see if a rented property for older, infirm people could be made available.

The house could then be sold or even rented out on a commercial basis which would enable the OP to repay his parents' debts and supplement their pensions/assist them to pay their rent.

Chrysalis

urbanhim wrote: »

Thank you, this was the purpose of my post to see if this is an option, it would appear from others that it is not though. Maybe i'll contact the council and see what they say.

Be warned tho I read other replies after posting and I think other advice been offered may be more realistic than mine.

With the council you have to watch for them seeing if it is a contrived tenancy and if they believe your parents threw away their wealth.

If neither of those two things is considered then you should get the payments providing there is a legal agreement in place for the tenancy.