Becoming a landlord

Keep_pedalling

phill2-0-0-3 wrote: »

I have no knowledge on rental that's why I'm on here .

How is it Deprivation of Assets ? I'm not purposely moving there for that reasons and my sister lives there anyway so how would they be able to take the house for there cost for residential care ?

I only brought the house 2.5 years ago and every house I was viewing sold within the month within this area . Very good commute to London .
I wouldn't say it's a bad area .

I'm geting a lot of negative feedback with nothing positive.
There's no solutions ?
What would you advise ?

As you are finding this is horribly complicated. It is deprivation of assets because they are giving away the one asset that might, but hopefully not, be required to meet care costs. You have not said anything about them owning any other significant assets so I am assuming they don’t have any, but if that is not the case then it is a whole new ball game.

It should be possible to to do what you plan to due without your parents giving up everything they own by either maintaining a share of the ownership or by effectively loaning you the equity in the house by putting a charge on the property.

I think your parents should take professional advice before proceeding any further.

Lungboy

phill2-0-0-3 wrote: »

Ok so what would you do in this situation ?

Sell the house! Take a lower amount, and save for the rest of the extension cost. Or get a lower quote for the extension. Or scale back the extension by a bit.

phill2-0-0-3

Lungboy wrote: »

So have you had full applications done? With each mortgage factoring in the other mortgage? You say you only have £1k a month income, so 2 mortgages seems like a lot even if one is interest only.

Yes both morgages are pre approved .
I have a little bit of tax credits about £200 with child benefit as one of my children live with me .

I can earn more with overtime if needed . But tbh I'm fine on the £1000 a month . Me and my family member split the morgage .

I can afford the two morgages myself at a push if needed .
Plus the bills will be less at my parents as we will all share them .
My parents would help with the morgages if I needed that .
But I won't take money from them unless it was literally desperately needed .
I do go out and hoildays ect Nothing amazing local seaside ect .

phill2-0-0-3

Lungboy wrote: »

Sell the house! Take a lower amount, and save for the rest of the extension cost. Or get a lower quote for the extension. Or scale back the extension by a bit.

Thank you for the response .

I can't take less as the family member doesn't want to lose money and that will come in at a loss . The house was valued at £300,000 originally.

On top of this if I lower the house price the house at the end will lower there's .
I looked up auction price .
As that's where they brought the house and they got it for £215000 .
As it had subsidence been repaired .
But they will keep lowering there's as they had it up for £300.000 a year ago .
Untill there's has sold I don't think mine will .
The estate agent told me there house was practically sold as I didn't want it to be on the same time with the same agent . But they assured me it would be sold .
And it's still on the market !

As for saving for the rest .
It would take to long to save and I need room for my children .
So would need to rent somewhere and that kind of defeats the whole saving option
I've had 12 prices and have got the best cost along with good workman ship . It's as cheap as it's going to be .

Even if I scaled back the exstention it wouldn't change the cost that much as how it's being built in a way where all the walls work off each other in a L shape aound the house .
And it would need to be built up at a later date due to space and would cost more due to how the access works when the exstention is built

phill2-0-0-3

Keep_pedalling wrote: »

As you are finding this is horribly complicated. It is deprivation of assets because they are giving away the one asset that might, but hopefully not, be required to meet care costs. You have not said anything about them owning any other significant assets so I am assuming they don’t have any, but if that is not the case then it is a whole new ball game.

It should be possible to to do what you plan to due without your parents giving up everything they own by either maintaining a share of the ownership or by effectively loaning you the equity in the house by putting a charge on the property.

I think your parents should take professional advice before proceeding any further.

To get the residential morgage for there property I would need to be the owner of the house .

Why would I leave the house in there name for what reason ?

As this will be my main house where hopefully I can grow old as work family kids all in this area .
Plus my sister's house aswell
I would hope after two years to sell the property after Brexit ect .

I would never have them homeless if that's the concern

phill2-0-0-3

Also I have one insurnace just to cover the cost of this house at present the other life insurance is for the children.
If I was to get the other house I would get more life insurnace to cover that morgage aswell

Yalpsmol

You have 24k income between 2 people after deductions and are planning on renting out a house you're struggling to sell AND to be building elsewhere? That is a huge financial risk. Aditionally the income doesnt even cover the interest.
My partner and I both earn more (but not loads more) and there is no way we could afford to let a property. When something goes home in your own home you can wait until you can afford to fix it (minus emergencies covered by insurance). When a tennant is there you cant make them wait. Do you already have significant savings put aside for maintenance and to cover months where tennants arent paying or the property is empty?

How much of a loss would you be making selling? Are you in negative equity? If so by how much?

phill2-0-0-3

Yalpsmol wrote: »

You have 24k income between 2 people after deductions and are planning on renting out a house you're struggling to sell AND to be building elsewhere? That is a huge financial risk. Aditionally the income doesnt even cover the interest.
My partner and I both earn more (but not loads more) and there is no way we could afford to let a property. When something goes home in your own home you can wait until you can afford to fix it (minus emergencies covered by insurance). When a tennant is there you cant make them wait. Do you already have significant savings put aside for maintenance and to cover months where tennants arent paying or the property is empty?

How much of a loss would you be making selling? Are you in negative equity? If so by how much?

We both have savings . And I would be geting the house all checked before renting I have the gas Safe certificate .
I have been told I won't need a electric certificate . But will get one to be sure .
Have fire alarms that run of the mains and co2 alarm
We can cover the morgages on both properties with no income from tennets if needed without affecting ourselfs to much .

I'm not doing this to get rich I no that won't happen .
But I will be geting into dept to do this .
So this would be the house I would want to stay in for the rest of my life .
And I can't spend that amount on a house to lose it .
Unsure why some people are stating that ?
If my parents go into care then I would sell my house worse case synaro .

phill2-0-0-3

As for equity
Morgage is £155k
Totally cost including work done £268750
So would leave 110k after fees .
House build 100k
10k incase it goes over

phill2-0-0-3

Also what sort of professional advice should I get ?
Who should I go to about this sort of situation ?