Buy Father in Law house

Rexxter

My father in law has a £100k mortgage on which he has paid £50k but he is struggling to keep up the payments.

My wife and I want to pay off the remaining £50k of his mortgage and when done he has agreed to transfer the deeds into our name so that we take over ownership of the property.

My father in law has three children including my wife.

Is this possible and are there any pitfalls we should avoid?

AnotherJoe

What do the other siblings say? Do they mind, considering that your wife is getting a £100k+ house for £50k.
If your FIL needs to go into care, or other social services, this may look like (or be ) Deprivation of Assets, eg FIL is giving away stuff so it seems as if he hasnt got any money but he's just given it to you to "hide". They can come after you for the house. Lots of nuances here.
If the house is yours then you'll be due to pay all the maintenance and so on. If FIL pays you rent even if nominal that makes you a landlord with all the legalities that involves.

somethingcorporate

Why not just help with the mortgage and let him keep the security of his own home?

If you end up divorcing then the house he lives in may need to be sold off to split it.

melanzana

If I were FIL, although I would be very grateful, I would insist on an absolute right of residence in the property until death, in exchange for this arrangement.

Everyone gets something.

As always, see a solicitor, and as another poster has said, keep the rest of the wife's family on board.

They may be in a position to help out too. So amongst the three siblings, help with payment may just be a better option. I dunno.

Thrugelmir

Is your FIL going to remain living in the property?

Rexxter

The other siblings seem ok about it at the moment. They like the idea as they are struggling to help support the mortgage payments.

Our FIL is happy as he will live in the house without worrying about his mortgage.

Mojisola

Rexxter wrote: »

My father in law has a £100k mortgage on which he has paid £50k but he is struggling to keep up the payments.

My wife and I want to pay off the remaining £50k of his mortgage and when done he has agreed to transfer the deeds into our name so that we take over ownership of the property.

Rexxter wrote: »

Our FIL is happy as he will live in the house without worrying about his mortgage.

If you paid off the remaining £50k and took a % ownership of the property, he wouldn't have to worry about paying the mortgage.

What's the reasoning behind giving away all his equity?

Rexxter

Thanks Mojisola.

He will continue to live in the property free of charge until he dies.

Mojisola

Rexxter wrote: »

He will continue to live in the property free of charge until he dies.

Couldn't he still do that as a part-owner?

There is a risk of deprivation of assets if he gives away such a lot of capital.

You also won't be able to guarantee he can stay in the house once it's owned by you and your wife - consider the what-ifs - you and/or your wife die before him, you go bankrupt, your life changes and you need to claim means tested benefits but can't because you own another property, your wife's siblings changing their minds about losing a possible inheritance, etc.

Both sides need to take independent legal advice before going ahead with this.

Jox

Would you have to pay stamp duty?

Pixie5740

Rexxter wrote: »

The other siblings seem ok about it at the moment. They like the idea as they are struggling to help support the mortgage payments.

Our FIL is happy as he will live in the house without worrying about his mortgage.

Who is "they" in that sentence? Have the other siblings already been helping out with the mortgage payments and are set to get diddly squat whilst you get £50k or is the "they" your FIL?