Buy Father in Law house

csgohan4

tenancy in common and split the share according to how much you have contributed


Or via solicitors a charge placed on the house to how much you paid in???

Thrugelmir

Rexxter wrote: »

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

That's going to be the issue for lenders.

p00hsticks

Thrugelmir wrote: »

That's going to be the issue for lenders.

The OP seems to suggest in their intiial post that the transfer of ownership would only occur after the mortgage is fully paid off.

Of course that would leave the OP having to trust the father to make sure that this actually happens once paid off (or in the event of his death if before) or they could end up 50k out of pocket with nothing to show for it

SavingSteve

Lots can't go wrong here. If you are paying off in cash I'd suggest you see a solicitor and draw up the following:

1) Your 50k payment gets you 50% of the property
2) The mortgage is paid off the same day this transfer of ownership takes place
3) Your FIL has right to reside until death

Will FIL pay you rent for your 50%? If not is his handing over the other 50% meant to be in lieu of a lifetime of paying rent on the 50% he does not own? If the latter then the solicitor should be able to write that into the agreement.

Depending on if he needs to go into care that could still be consider deprivation of assets, so you should keep a log of what 50% of rent on commercial terms would be, and how that compares to the 50k equity he has handed over.

This is also how it should be explained to the other siblings to avoid this being an issue down the line.

Browntoa

Jox wrote: »

Would you have to pay stamp duty?

That's what I thought , and at full market value not 50%

And definitely deprivation of assets depending on his age

It's a minefield , what happens if you fall out with FIL