Can I buy my dad's house?

AdrianC

Rsmith04 wrote: »

Hi everyone, apologies maybe I wasn't very clear. The house would be in dad's name as yes only he has the right to buy, my sister, dad and I would all pay into the mortgage so that dad's monthly outgoings on rent would be halved, and I would have to take out the mortgage for him as he wouldn't be able to get one. The point being that if he wants to move somewhere else he would have a little nest egg and then he can leave the house to my sister and I when he is gone. I was more thinking along the lines of will I be able to get another mortgage as it will be seen as an investment I assume, what happens with tax and also is it sensible - if dad/my sister couldn't afford to pay then we would have to cover the whole payment, we'd never make him homeless. Also as my sister has no family and is vulnerable we thought it would be a good way of setting her up in the future. I am in two minds X

If the house is in your father's name, then the mortgage will need to be in his name - will he qualify?

OK, so he's bought his house - and you and your siblings are kindly gifting him several hundred quid every month to cover his mortgage. Now he needs residential care. He has sufficient assets - his house - to pay for his own care, rather than have the local authority pay. Or there's a large bill for it - will you be gifting him money for that, too, rather than the council pay? How does owning a property affect his eligibility for means-tested benefits?

It's all very kind of you to gift him all that money - and, of course, there's no financial pay-off for you at the end of the day, is there? Heavens, no. That's not your aim at all, is it? How very dare we be so cynical as to suggest it.

Still, at least he was eligible for a council property, because they hadn't all been sold off when he needed housing.

AdrianC

SnooksNJ wrote: »

I can think of only positives in buying your Dad's council home. There are no tax implications and there are special mortgages for children who want to buy their parents Right to Buy council House. The banks just opened so I would get down there today to speak to a Mortgage Specialist.

Perhaps you would be so kind as to name a couple, to help the OP start their search...?

Rsmith04

Thanks all I didn't realise that I wouldn't be able to buy for him. What's the problem in him wanting to leave us something after he has gone though, I never said it wouldn't be in our interest long term to do it?

HiToAll

Rsmith04 wrote: »

Hi everyone, just after a very rough idea of how to go about buying dad's house, he is a council tenant and qualifies for the max discount on right to buy. Mum died recently, he doesn't want to move now but may do (He won't be able to for 5 years without paying the discount back). I have a repayment mortgage on my house, and wanted to take a mortgage on his (He and my sister will be contributing as well as my hubby and I but I think it would have to be in my name as one is retired and one out of work?). The mortgage will be for approx 90k. What should I be considering other than what would happen if they couldn't meet the repayments? We are seeing an IFA in a couple of weeks but just wanted an idea of if its even possible. Thanks

and then conveniently the house would be yours. what a surprise you suggest this

HiToAll

Rsmith04 wrote: »

Thanks all I didn't realise that I wouldn't be able to buy for him. What's the problem in him wanting to leave us something after he has gone though, I never said it wouldn't be in our interest long term to do it?

at least you are under no illusions that you are screwing the tax payer out of a few £ for your own benefit.

missbiggles1

Rsmith04 wrote: »

Thanks all I didn't realise that I wouldn't be able to buy for him. What's the problem in him wanting to leave us something after he has gone though, I never said it wouldn't be in our interest long term to do it?

There's a problem when he puts his current and future living situation in jeopardy just to potentially benefit his offspring in the future.

Your father's security and comfort should be your main aim and this scheme takes away both from him, even if it were feasible.

AdrianC

Rsmith04 wrote: »

What's the problem in him wanting to leave us something after he has gone though, I never said it wouldn't be in our interest long term to do it?

It wouldn't be "him leaving", though, would it?

You would have been paying the mortgage off by gifting money to him. So it would just be your own money coming back to you...

Unless... Oh, wait a sec. Your money would be getting a large return, thanks to a gift from the local council tax payers, via his RtB discount. Do make sure to thank them, won't you? I'm sure your need for their money is much greater than their need for the other local services that money could have gone to. Does your father receive any help from social services, perhaps?

fed_up_and_stressed

Rsmith04 wrote: »

Thanks all I didn't realise that I wouldn't be able to buy for him. What's the problem in him wanting to leave us something after he has gone though, I never said it wouldn't be in our interest long term to do it?

The problem is you are fraudulently trying to obtain a discount you personally are not entitled to.

Rsmith04

Hitoall I don't really understand your vitriol, was only asking for advice.

fed_up_and_stressed

Rsmith04 wrote: »

Hitoall I don't really understand your vitriol, was only asking for advice.

Advice on how to defraud the taxpayer ... And you wonder why you got burned ...jeez.