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

teddysmum

greyfox wrote: »

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.

Just what I was thinking.

teddysmum

Thrugelmir wrote: »

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

We haven't bought a property for over 40 years, but I believe they need to know where any invested capital (part payment or deposit) is sourced.

AdamPD

Thanks everyone for the feedback, there's so many things I didn't know about regarding this, it seemed like a simple idea at the time
Basically my dad wants to give me my inheritance early, hence the idea of moving into a 2 bed flat
Seems there's a lot of pros, cons and grey areas with my idea, so for the time being, I think we'll have to stay here.
I think someone here mentioned a retirement flat, the issue is he would be on his own, in the flat at least and he wouldn't be able to afford living there (Bills + the service/maintenance charges etc)

Lloyd90

What income does your dad have?

Why can't he afford anything at all? Seems very strange.

An intentional deprivation of assets could end you up in hot water and a charge against the property even after you buy it so you could be out in inheritance tax and fees etc.

You should probably speak to a financial advisor who knows the laws properly.

AdamPD

Lloyd90 wrote: »

What income does your dad have?

Why can't he afford anything at all? Seems very strange.

He gets a state pension, private pension and a small pension credit.
State pention I think is £110 a week, Private 1 is £30.95 a week and about £9 a week pension credit.
Cheapest retirement flat around here is about 110-120k
This house is worth around the 300k mark, with a 119k mortgage left on it, so about £90,000 if split half each.

bouicca21

So the mortgage costs something in the region of £600 a month? His half is just about doable but would leave him with a miserable standard of living?

How much do you contribute? What do the lodgers pay? Could you manage with just one? Could you get a better mortgage deal (better rate or just extend the term)?

How do you hold the ownership? If you are going to inherit automatically on your father's death woukd it not be fair to pay more than half the outgoings?

Cakeguts

If you sold the house and your dad got his equity out of it and invested it to give an income how much would it cost him to rent a retirement property?

teddysmum

Cakeguts wrote: »

If you sold the house and your dad got his equity out of it and invested it to give an income how much would it cost him to rent a retirement property?

When a relative was considering selling her terraced house and renting a retirement flat in a block built at the end of her street, she found that her money would soon run out, as rents and other costs were very high, unless you were on benefits.