Buying part of parents house

bob_bank_spanker

ent_moot wrote: »

Solicitors are not especially incentivised to give advice that is aligned with one's long term future plans. There is no way I am going to waste money on advice from a solicitor when I can obtain a much broader picture myself, free of charge.

Yes, what I said originally was nonsense. Why do you think I came and asked on a forum? Precisely because I know how ignorant I am and wanted a rough steer in the right direction. One of the things that the best Software Engineers in the world learn very quickly is that, no matter how much you are are paid and no matter who they are, it is always worth asking stupid questions.

Thanks to the likes bowlhead99 and the other useful people on this thread, I now have a much better picture. I'm yet to see any significant evidence, at least not in this thread, that going anywhere near a solicitor would be a sensible idea. It may have worked for you, and I respect your choice and I apologise for the indirect insult I've applied by stating my opinion of solicitors, however what has always worked for me throughout my life is figuring things out for myself. And that includes asking stupid questions and not getting offended when people attempt to exploit that apparent vulnerability.

If you make fun of people for asking stupid questions, you are basically just making the world a worse place. So I would just like to ask you politely not to do it.

I didn't make fun of you, well, at least that wasn't my intention, and if that's the way it came across then I wholeheartedly apologise.


Like you our household income is well above average, we are hoping to retire early, and we try and do jobs ourselves where it is economic to do so.


However, we are pragmatic about it, and you appear to be dogmatic in your approach (apologies if this annoys you further!)


If I mess up when I replace the toilet, it will cost me maybe £1.5k in plumber's fees, and I have insurance to cover any damage to the house. If I mess up conveyancing it will cost a 6 figure fee, and I will have no recourse. Nobody will insure me for a DIY conveyance, I can sue my adviser if they !!!! it up.


Your android app analogy falls over for exactly the reason Fatenbread has highlighted - a house is for most the most valuable transaction they will undertake and it has to be done correctly.


Yes, I am biased, my other half is a partner in a law firm, but she has saved her clients far more than she has charged, that I know for a fact.

Malthusian

Fatenbread wrote: »

What if I had one chance to get my Android app right, and the cost of getting it wrong was £120k?

Then clearly you need to wish even harder that you won't get it wrong.

Perhaps to be doubly safe, instead of just Googling it, you should seek independent verification from Bing or AskJeeves.

ent_moot

Thanks Fatenbread, this is useful information.

For now, I will gift them the money as an interest free loan. It's possible that my parents may become financially independent of me in the next 12 months. If not, I may look into buying a percentage of their property.

greenglide

, I will gift them the money as an interest free loan.

You cannot do both with the same money!

You can either gift them the money. It is theirs to do with as they please.

Or you can lend it to them, specify conditions and the interest rate can be zero.

You would, of course, have to document this and this should be signed by all parties.

A solicitor would tell you this but you reckon you don't need one! Really?

ent_moot

You cannot do both with the same money!

Yes, obviously.

I meant that, formally, it would be an interest free loan. Informally, my parents and I would understand that it may never be paid back.

A solicitor would tell you this but you reckon you don't need one! Really?

Given that:
1) this would be short term arrangement
2) I would accept that I may never get the money back

It would be extremely wasteful to involve a solicitor for this.

...but then, what would I know about frugal? I only manage to support myself wife and child on 20% of my salary whilst putting 80% of my salary into mortgage overpayments, pension and savings, and will likely own my house outright by my mid 30s even if I have to pay my parents full mortgage for them.

atypical

If you do loan them the money you should also think about whether you need to be FCA regulated (highly unlikely) and whether the Consumer Credit Act applies (likely, albeit light touch as a 'non-commercial agreement'). It gets far more complicated if you take a second charge over the home as mortgage rules might start applying.

There's a summary note here:
https://goughsq.co.uk/wp-content/uploads/2016/07/Are-loans-involving-1-629-6405-latest.pdf

pearl123

ent_moot wrote: »

I'm a software engineer by trade, but I do all my own plumbing, electrics and building work. Gas and car repairs, not so much.

If you haven't got a qualifications in electrics, plumbing and gas then you really should not be doing it. Too many have a go and they don't realise the dangers.

bigadaj

pearl123 wrote: »

If you haven't got a qualifications in electrics, plumbing and gas then you really should not be doing it. Too many have a go and they don't realise the dangers.

To be fair, gas is an absolute. People can still do their own electrics but need to be signed off by a qualified person. Plumbing isn't regulated but the consequences can be dramatic and expensive.