Buying with elderly father - pitfalls?
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Hope this is in the right place...
My dad (82) is currently living in a council flat which he now hates having lived there for roughly 30 years - originally they were for over 55s only but now a mixture of young families and drug addicts are housed there. Sadly he is in the early stages of dementia so some kind of care will be likely in the future. Ideally, he would move closer to me (i have a 25% share in a flat in a different town roughly 12 miles away which I shall keep), but having only been living here for 3 years he is not eligible for a transfer (local council need me to have lived here for 5 years before they'll even allow him on the waiting list).
Our options are:
1. He can buy a bungalow for roughly £120k cash which after fees would still leave him with a cash sum of £20-£25k for repairs/renovations;
2. He can buy a bungalow for £170k using cash plus potentially a small(ish) loan from me of ~£20 to £30k;
I realise that he may need part-time care in the future so it would need to be a 2-bed bungalow to allow me/a carer to stay overnight if necessary and may need full time care in the not too distant future. As there is a better choice at the £170k mark, I would be happy to contribute to the purchase as long as I can protect my share from the possible care home fees.
1. Can I (easily) protect the percentage of the property that I may have lent dad to buy it (let's say I lend him 20% - no mortgage required), can I then claim my 20% of the equity or original loan + interest (if higher) if he goes into full time care?
2. I guess as a loan, there would be no SDLT implications for me as I don't own a share of the property?
Any other advice/comments would be appreciated.