Property Purchase Question

NewUser1873

My next door neighbour has a seriosu mental illness and i was hoping to ask about the possibility of purchasing the house for a VERY low amount (this is all i have) but based on the condition that he gets to live there until he dies or moves into a home for exmaple. I know this is more popular in France than England but i have nothing to lose but wanted to know what your thoughts were?

The hous eis very run down and almost looks derelict.

It would be an amazing fixer upper and would be better than winning the thunderball jackpot form a financial standpoint.

We have already asked his sister if we could get first offer if they ever decide to sell it and she said yes but tbh i am hoping they just give it to us which is a long shot but who knows. I am happy to buy it and fix it up myself as it has good potential but i don't really want to talk to him...

I think i should just start talking to him and befriend him then maybe just ask. He will porbably say no becuase he doesn't like change but then i have the feeling he will change his mind eventually since he has done this in the past when we have asked for things such as cutting his tree down (which we arrnaged for him) and also his front garden grass getting timmed.

Thoughts?

Comms69

Ok.
Firstly where's the benefit for him? Why would they give you a property? Is he able to make decisions?
I think your question needs to be specific. 

AdrianC

First off, buying the property then retaining the vendor as a tenant is a regulated activity - sale-and-rent-back.

But, that apart, are you hoping that "But you can just stay there as long as you need" is enough compensation for a below-market-value sale? And will you be letting him continue to live in the dereliction, or will you be doing the place up around him? Can you fund that?

Will you need a mortgage? If so, forget it. It ain't happening.

steampowered

The way you have described this makes it sound like you might be trying to take advantage of this person's mental health condition to acquire his property at an undervalue. I'm not accusing you of anything but that's how it sounds from here !!!

English law has concepts of mental capacity, duress and undue influence. If you are found to have bought the property from someone without capacity, or under duress, or by exercising undue influence - there's a strong risk that the sale might later be found to be void. This person's beneficiaries could challenge the sale after he dies through his estate - and if you lose, you'll be paying their legal costs.

If you want to buy the house you should make an appropriate offer at full market value, and protect yourself by ensuring that the property has been duly marketed via estate agents, to avoid any allegation that you got a bargain by exercising undue influence.

I don't think your suggestion of paying a cheap price and letting him stay there is a go-er.

greatcrested

Too much time thinking during lockdown!

Hasbeen

NewUser1873 said:

It would be an amazing fixer upper and would be better than winning the thunderball jackpot form a financial standpoint.

So you want the property for nothing or willing to pay a very low price?

You think that would be better than winning £500000?

You are willing to let your "new" friend stay there for free? Or until he dies or moves into a home. Perhaps feasible?

I think that you would have to pay the complete market valuation. And then find funds for "the amazing fixer uppers" work.

Would think that would entail, as you have a "very low amount" of funds. A substantial mortgage?

If he or family decide on your plan, the existing owner might be there for a considerable time, are you going to do all the renovations around him?

Even living there for free you would have to fulfill all obligations of a landlord? with all the property up to required standards?


Personally I would wait and if the present owners situation ever changes or if his family decide to sell as part of the estate, then decide then. Your financial position might be stronger by that time.