Buying a place in my name, having my father live with me

AdamPD

Bogalot wrote: »

Was he also keen on you potentially leaving him without a home in the future, or expecting him to move away because you want to? You did give him the full picture here, didn't you?

He would be able to get local housing allowance for a flat, I think, but I wouldn't chuck him out on the streets, I'd pay for accomodation until he did find his own.
But that's only IF I decided to move away, which to be honest is unlikely, as I've lived here all my life (37 years)

Owain_Moneysaver

AdamPD wrote: »

My question is, should I die before my father, what issues would my beneficiaries face with regards to the flat being sold off and the money given to them
Would he have any rights at all? or could he try and claim the flat/money from the sale?
Also, if I decided to sell in 5-10 years to move somewhere else, could he prevent the sale or interfere in it?

You need to take specific legal advice, or this could end up horribly messy, but in general:

1. It depends on the terms of your will. It would be usual to give your father a life interest in the flat so he can stay living there rent free if he wishes, but that means your beneficiary couldn't take possession, possibly for many years, and the flat might suffer significant dilapidation in that time. The beneficiary might find themselves responsbile for maintenance on a flat from which they gain no income.

Or the executor would have to give notice to your father to quit and gain possession of the flat for the estate before distributing it to the beneficiary. Your father could be homeless - the court would probably give him a few months before granting a possession order, but unlikely to be more.

2. Your father could not prevent the sale but as an occupant in the property would have to agree he had no rights in the property and would have to agree to move out, especially if you weren't taking him with you. If he didn't agree then you'd have to evict him. This supposes he doesn't have a legal interest in the property, which he may claim at a later date if he's providing half the money and living with you.

There may also be capital gains and inheritance tax, and deprivation of capital regarding benefits and care costs, to be considered.

Mossfarr

If the property is solely in your name and you were to die first you could grant him occupation rights for his lifetime after which the house could be sold and the money go to your named beneficiaries.
But if you did die first, who would look after him and pay his bills then?
If he needed to go into full time care then he could be accused of deliberate deprivation of assets by selling his former home. If it were decided that he had indeed done that I'm pretty sure the care agencies can register a charge against the property anyway.

Is there no way you could remortgage your current home and make some adjustments to give you some separation from your lodgers?

[Deleted User]

It seems to me that a compromise of some sort is needed. At the moment you have a 'want to have your cake AND eat it' scenario (not being insulting).

Your father has an investment in the property, but you want to take both of your investment out of it and buy a smaller place without lodgers - i.e. you take the investment and buy a smaller place, maybe taking your father with you but if he kicks up, he'll be in private rental on HB (with the possibility of moving every year if he's unlucky with a LL wanting to sell - this does happen). You like having your mortgage and bills paid by having lodgers but don't want lodgers.

But you don't seem to have considered reducing or getting rid of the lodgers, and paying the mortgage or bills. A third option. Or just reducing the lodger numbers to something you can live with.

I had to do this when a student, I took in a lodger in a one bed flat (which meant no access to kitchen or lounge for me). It wasn't pleasant but meant I didn't have to pay the rent so I put up with it. Did this for four years.

At the moment, if I understand your post, it sounds like you are looking at ways to edge your father out if you so choose (either in 5-10 years or after your death), which is a bit worrying for your father. I apologise if I've misunderstood but could leave your father in a very bad position.

I don't know how well you get on with your father, but if he is getting older, remember that he might need more care later on (my father is 82 and very ill with parkinsons, lives some distance away, will only take limited SS or paid for care so its all falling on me - and I have 2 special needs kids as well lol.., would be much easier if he lived a mile or two away). Of course, 20 years ago none of this was suspected as being possible but it has and is happening now.

Could you both move to a cheaper area where you might be able to afford a two bed place mortgage free?

missbiggles1

AdamPD wrote: »

Hmm not quite...
He's agreed to give me his share of the equity when the house is sold, so I can then find a flat to buy in my name, with the agreement he will live there rent/bill free.

Sounds like the answer should be "Yes, I will".

Person_one

It sounds like you and your dad have very different ideas about how and where you each want to live.

Is there any reason why you have to live together? Can you not sell the house (or one buy the other out) and go your separate ways in terms of housing?

Cakeguts

Your dad could probably get a retirement flat for less than they normally sell for.

sparky130a

AdamPD wrote: »

Yea I'm not all that great with wording things (Damn you Dyslexia!)
We could, but he wouldn't want to get a flat by himself, because he doesn't want to pay any bills or expenses, he's so used to living here without any real bills (he forgets about the wear and tear here due to the lodgers, though)
It's a pain, I don't really know what I want to do.

I don't want to pay my bills but it's part of being an adult!

You both need to take a more pragmatic and grown up attitude to this potential transaction.

greyfox

AdamPD wrote: »

He would be able to get local housing allowance for a flat, I think

He wouldn't be able to get Local Housing Allowance as he'd be treated as having deprived himself of the capital he'd given you from his share of the equity in the bungalow, which would be many times the capital limit for that benefit.

Thrugelmir

AdamPD wrote: »

Hmm not quite...
He's agreed to give me his share of the equity when the house is sold, so I can then find a flat to buy in my name, with the agreement he will live there rent/bill free.

From a legal perspective this would give your a father a financial interest in the property. Mortgage lenders will need to know this.