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Should we give our flat to the inlaws?

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Comments

  • gingercordial
    gingercordial Posts: 1,681 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    lcauk wrote: »
    Service charge is £100 a month. It's on the 6th floor, and it's a mezzanine apartment with stairs inside.

    This bit makes me think that, either way, this is the wrong flat for them and what you want to achieve. Think of it this way: if you had the cash at hand that you might expect to sell the flat for, and wanted to buy your in-laws a flat, would you buy them this one? If not, why not? Could you in fact get something better suited for them, maybe even for less money? If so, why are you so set on keeping this flat when it isn't the optimum solution? I know you're probably emotionally attached to it as your current home, but that needs to be set aside if it isn't giving the best answer.

    If I were you I would sell the flat and buy your new house without the extra SDLT. Take the time to consult with your in-laws about what they might like and where. Choose a flat together, then either buy it yourself (paying second home SDLT, but on presumably a lower cost than your new home would have been) and consult a solicitor to set up a binding long-term secure tenancy for no/minimal rent, or give them the money to buy it but with a charge over it for the amount given. And at some point discuss your childcare expectations too :T
  • lcauk
    lcauk Posts: 6 Forumite
    Thanks for the quick replies. I hear what you're saying regarding the stairs. However, they do say that they love the apartment as it is
  • macman
    macman Posts: 53,129 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Given that you have a joint income of £130K, wouldn't it be worth a few hundred to get proper professional advice on this, rather than rely on advice from a forum, however well meaning?
    No free lunch, and no free laptop ;)
  • lisyloo
    lisyloo Posts: 30,094 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Agree, however forums are good for sounding out ideas and getting angles you hadn't thought of. When consulting a professional it's still a good idea to know which questions to ask.
  • Leaving sentiment aside for a moment, I think that selling the flat and giving the parents the money would work better. They get to choose accommodation that is more suitable to their needs, and you save an awful lot of money on stamp duty.

    The alternative is to gift the parents a flat that might not be ideal for them (and they may be too polite to say so), and doing so will cost you money!
    How would the parents finance their retirement if you weren't in a position to help? They've had their whole working life to answer that question - what were their plans?
    No longer a spouse, or trailing, but MSE won't allow me to change my username...
  • tlc678910
    tlc678910 Posts: 983 Forumite
    Part of the Furniture 500 Posts Combo Breaker
    edited 5 January 2019 at 5:07PM
    lcauk wrote: »
    Thanks for the quick replies. I hear what you're saying regarding the stairs. However, they do say that they love the apartment as it is

    Hi OP,
    I'm sure they do love the flat - that doesn't make it suitable for the next 30 years.

    Your post sounds like despite wanting to give away the flat your inlaws should be committing to live in it and not sell it - why?

    There is a lot of contradiction in what you are trying to do. You and your partner seem to "love your flat" and want to "keep it" and benefit from a "good investment" by giving it away! It doesn't make sense. If you want to keep and cherish your flat don't give it away - that is setting you all up for a fall.

    You and your wife need to decide what is (most) important to you. Is it keeping your flat? Or is it giving your inlaws the security of their own home - which comes with them being able to sell it when it becomes unsuitable / if they find something they prefer/ if they fancy a round the world cruise.

    You can't keep your flat by giving it away.

    I have been mulling over your initial post again and I still think charging your inlaws rent is counter productive. You have 130k pretax income (between you). Your inlaws are I assume on a fairly low income and will be finding rent to throw into your much fatter pot of income. You will then pay a very hefty chunk of what they have given you as tax.

    Paying rent seems to be giving you as a couple a little more income that would not be significant to you (say 3k a year on a rent of £500) while costing the inlaws quite a bit more.

    I still think it is very relevant to consider your position with your wife earning the bulk of household income. If your wife died, lost her job, you separated or your wife was ill and was unable to work would you be able to stay in your £400k home or lose it? Would you be able to provide anywhere you aspire to live, for you alone or as a couple, with your own income alone?.

    I think you should think through together how you as an individual or a couple would manage in each of these circumstances. Insurance would likely play a part. If you have given the flat away then selling it or being subsidised by rental income is not an option. Unless you have very substantial insurance including the type that covers you (your wife) for being unable to work or losing your (your wife's in this case) job, I don't think you are as secure as you may think - like most of us (? many of us?) - you could be one illness/redundancy away from losing your home

    .....but unlike most of us you have the choice of keeping a very large nest egg to help.

    Tlc
  • xylophone
    xylophone Posts: 45,746 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    However, the prevailing wind over here at the moment is still with 'give the flat away'. Psychologically we know it would create a great sense of security for them if they know they have their own property which is almost priceless.

    If you sold them the flat on a "private mortgage" basis (a solicitor would deal with the agreement etc) and took a first charge, they would have the security of their own home and you would have the security of the charge which would ensure that you were repaid if the property had to be sold?
  • lcauk
    lcauk Posts: 6 Forumite
    macman wrote: »
    Given that you have a joint income of £130K, wouldn't it be worth a few hundred to get proper professional advice on this, rather than rely on advice from a forum, however well meaning?

    You would not believe how difficult it has been trying to get straight forward advice on this. We have spoke to financial advisors, mortgage brokers and accountants and have gone round in circles. Everyone suggests talking to someone else. I've been impressed with the range and depth of advice from the forum
  • lcauk wrote: »
    You would not believe how difficult it has been trying to get straight forward advice on this. We have spoke to financial advisors, mortgage brokers and accountants and have gone round in circles. Everyone suggests talking to someone else. I've been impressed with the range and depth of advice from the forum

    Are you going to follow it?
  • lcauk wrote: »
    You would not believe how difficult it has been trying to get straight forward advice on this. We have spoke to financial advisors, mortgage brokers and accountants and have gone round in circles. Everyone suggests talking to someone else. I've been impressed with the range and depth of advice from the forum


    I'm sorry to say this, but all these professionals have something in common. They all know what they're talking about, and they all think it's a daft idea. It's just that none of them feel they can tell you that outright. Think about that.
    No longer a spouse, or trailing, but MSE won't allow me to change my username...
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