We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Advice - Part Buying Parents Property

falaise86
falaise86 Posts: 16 Forumite
Eighth Anniversary 10 Posts Combo Breaker
in House buying, renting & selling
Hi,

I'm confused slightly and hoping you lovely people could shed some light?

Below is the scenario and my current understanding. I'm looking for some guidance on what the process is to make it happen.

Scenario
Parents own property (Mortgage free)
Parents would like to sell us part of the property
Parents would like to keep a "stake" in the property to be able to share across other children if anything ever happened to them

Thanks in advance for any help.
«1

Comments

  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
    10,000 Posts Eighth Anniversary Name Dropper Photogenic
    falaise86 wrote: »
    Hi,

    I'm confused slightly and hoping you lovely people could shed some light?

    Below is the scenario and my current understanding. I'm looking for some guidance on what the process is to make it happen.

    Scenario
    Parents own property (Mortgage free)
    Parents would like to sell us part of the property
    Parents would like to keep a "stake" in the property to be able to share across other children if anything ever happened to them

    Thanks in advance for any help.

    If your buying with cash then no problem, if you require a mortgage then you will encounter problems as there are very few lender who will allow more people to be named on the deeds than the mortgage.

    If the property in question is not your parents' only or main residence then disposing of part or all of the property could trigger a CGT liability.
  • LEJC
    LEJC Posts: 9,618 Forumite
    where in this scenario are the parents going to live ?
    frugal October...£41.82 of £40 food shopping spend for the 2 of us!

    2017 toiletries challenge 179 out 145 in ...£18.64 spend
  • falaise86
    falaise86 Posts: 16 Forumite
    Eighth Anniversary 10 Posts Combo Breaker
    LEJC wrote: »
    where in this scenario are the parents going to live ?

    To clarify, its the parents second property. So it currently not and will not be their main/only home.

    Thanks
  • falaise86
    falaise86 Posts: 16 Forumite
    Eighth Anniversary 10 Posts Combo Breaker
    Pixie5740 wrote: »
    If your buying with cash then no problem, if you require a mortgage then you will encounter problems as there are very few lender who will allow more people to be named on the deeds than the mortgage.

    If the property in question is not your parents' only or main residence then disposing of part or all of the property could trigger a CGT liability.

    Will certainly need to be mortgaged for most of the part we buy.
    - Any pointers on lenders that will/wont lend to allow people on deeds and not on mortgage?

    Is the 'rents second home. They are aware and accepting on CGT liability.

    Thanks.
  • Mojisola
    Mojisola Posts: 35,571 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    falaise86 wrote: »
    Parents would like to keep a "stake" in the property to be able to share across other children if anything ever happened to them

    So you will have to sell your home in order to give your siblings their inheritance - or when one of your parents needs residential care?
  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    It would help to advise if we understood the aim.

    What are parents trying to achieve?
  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    edited 20 November 2017 at 1:46PM
    falaise86 wrote: »
    To clarify, its the parents second property. So it currently not and will not be their main/only home.

    Thanks

    Will it become yours?

    What if you want to move?
  • falaise86
    falaise86 Posts: 16 Forumite
    Eighth Anniversary 10 Posts Combo Breaker
    Mojisola wrote: »
    So you will have to sell your home in order to give your siblings their inheritance - or when one of your parents needs residential care?

    Not necessarily, there is currently enough estate to share amongst siblings that wouldn't mean us needing to move or sell.
  • falaise86
    falaise86 Posts: 16 Forumite
    Eighth Anniversary 10 Posts Combo Breaker
    G_M wrote: »
    It would help to advise if we understood the aim.

    What are parents trying to achieve?

    No real aim, the property is not being used currently. Parents are thinking about selling it. We are not in a position to buy it all from them. But we could buy a percentage of it now, potentially buying the remaining in the future. They see selling part of it as "investing" the remaining they would own, while enabling us to have a property to live in.

    Hope this helps, I've read it back and it may not be particularly clear?
  • glentoran99
    glentoran99 Posts: 5,825 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker Debt-free and Proud!
    falaise86 wrote: »
    Not necessarily, there is currently enough estate to share amongst siblings that wouldn't mean us needing to move or sell.



    How does that work? The siblings will own part of the house regardless of what other estate their is.
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 352.1K Banking & Borrowing
  • 253.6K Reduce Debt & Boost Income
  • 454.2K Spending & Discounts
  • 245.1K Work, Benefits & Business
  • 600.8K Mortgages, Homes & Bills
  • 177.5K Life & Family
  • 258.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.
Update Your Picture