Buying a house with inlaws

davidmcn

bobbidodar said:

davidmcn said:

bobbidodar said:

i was probably most worried what would happen if one or both parents need nursing home care? Would that threaten our family home?

Depends how you expect it to be paid for.

Well I believe if a single person or couple, with assets (in this case a house) requires nursing care then they have to sell the house to fund the care.  But if one spouse requires nursing care but the other spouse is still living in the house then the council funds the care and the spouse can continue living in the house.

in my scenario both inlaws and my family will be living in the house, so if one or both parents require nursing care in the future, will the funding of that force my family to have to sell up and move out?

Will they need their care to be subsidised by public funds? We don't know how much money your in-laws have got, other than their current house is mortgage-free. It sounds like you'll have a reasonable amount of equity in the new house if you needed to release more funds by remortgaging. Though I think in practice if the local authority is providing funds then they'll put a charge on the property and await payment whenever that becomes possible, they don't literally kick you out.

greatcrested

There is also a get out if the house is also the main residence of another family member over the age of 60.

https://www.ageuk.org.uk/information-advice/care/paying-for-care/paying-for-a-care-home/do-i-have-to-sell-my-home-to-pay-for-care/

AdrianC

bobbidodar said:

i could see the bit about if one spouse needs care and one is still living in the house, but couldn't see anything about other family living in the house with a share of that house.
The last thing I want to happen is that I have to lose my family home.

As my newty friend says, the cut-off is age 60.

Below that age, TPTB assume that you can stand on your own two feet financially, and your parents can pay for their own care, rather than have the council tax payers of the area subsidise your inheritance...

Davesnave

Unicorn_cottage said:

Surely lots of Asian families do this?

They do. It's a responsibility taken seriously and discussed by the children, even in today's Britain. Not understanding why or why not is a cultural thing.

Must admit, at one time I considered a shared larger property like this too, as we had plenty of equity between us at the time. Glad I didn't now, though!

wilfred30

Does your wife have any siblings who would be disadvantaged by this proposed arrangement?

Mickey666

Much depends on the family dynamics.  Another option would be for the in-laws to sell their house and gift the money to the OP couple who then sell their own home and use the pool of funds to buy a new house suitable for all of them, preferably with a elf-contained annexe for the in-laws.  In fact, if it’s a self-contained annexe it can have its own council tax band (often reducing the CT band on the rest of the house).  The annexe CT would then attract 100% discount by being occupied by ‘dependent relatives’ if they’re over 60.
Another option is for the new house to be bought by the OP couple and the in-laws pay rent to fund the mortgage, assuming the OP couple could get a mortgage in their own right.  Or perhaps some sort of gift + rent arrangement might work.
There are pros and cons for any arrangement but these suggestions would avoid the complications of multiple ownership.
Also, consider what ‘living together’ will mean in practice.  A self-contained annexe in a large house is one thing, a separate bedroom and sharing everything else is quite another.
As I said, family dynamics will make or break this sort of thing.

princeofpounds

Didn't live it it, but did something similar. As long as the working parties could cover the mortgage themselves, the lenders were happy for the non-working parties to be listed on the mortgage and as co-owners (their contribution came from cash equity).

onwards&upwards

Would would be far more sensible for them to just move very close to you, or you to them.  Same street or round the corner.  Then you can help out without getting hopelessly financially entangled.

xylophone

Have you discussed  the plan with a mortgage broker to see if he can come up with a lender who will consider a mortgage in these circumstances?

You can own the property as tenants-in-common with a Deed of Trust specifying the beneficial shares.

If one parent needs to go into care,  the house will be disregarded in any financial assessment - if both, then you might have to consider remortgaging in order to cover their fees.

Of course, neither of them might ever need residential care - you might be well advised to take the needs of an elderly frail person into account when choosing your new property - suitable bath/shower room/ room for wheelchair access etc.

tarzanette

Mickey666 said: a elf-contained annexe assuming the OP 

Poor Dobby.