Property Purchase advice

Cypruseast

Hey everyone. I’m looking some advice and was keen to get the views of some of the experts on here.

Basically my parents who are retired are looking to put some money that is currently sitting in savings accounts into something different that will not just see it lose money year on year due to inflation.  They also want to secure the money for their 3 children and don’t want to just blow it all on round the world trips, they have pensions and survive pretty comfortably on those. My parents have 3 children (that includes myself and my two siblings) - they own their own property outright and my two siblings own properties with myself being the only one that is currently a non home owner.

Ultimately they could invest in ISA’s etc but at the end of the day they are in their 70’s and that’s not exactly a short term investment that they’ll get any great enjoyment out of. They love their campervan, but again the toll of driving across Europe for 6 weeks every year will become less appealing. 

So long story short having spent time chatting to them I think we have come to the conclusion of identifying and buying a nice property on the coast that they can get away to for weekends or longer term. They enjoy walking and have always enjoyed the area that we are looking into. They are excited about the prospect that it is something we can all enjoy as a family together or separately and this money can go to something that is enjoyed and used rather than just sitting in a bank account. The area being considered is also very popular for short term holiday rentals so there is also an investment opportunity whereby for a percentage of the year the house could be rented out AirBnB style. 

The reality is that they have about £150k free but the nicer properties are up to about £230k. So I am proposing that I would make up any difference. I currently have cash to cover the difference having sold a property recently. As I am no longer a home owner I could also get a mortgage for the additional amount if that was the better course of action rather than using my cash given the very low interest rates on offer at the moment and invest that cash in other areas. 

We also have a property company set up in all the family members names so the property could also be purchased via the property company. 

So ultimately I have a few questions:

1. What is arguably the best way to purchase the property to minimise costs both short and long term?

2. In order to save the 2nd house stamp duty tax could I purchase the property with the money my parents have and my own money or a mortgage in my name? The reason I am suggesting that is that if I have £80k I could invest that in other ways and comfortably cover an £80k mortgage over 10yrs by adjusting my monthly savings to offset this amount. I am not looking to stiff anyone so would only want to ensure my own investment % would be separate for inheritance purposes. How would that be set up to give all family members the confidence that I am not going to shaft them and put the house in my name and tell them all to do one (which I have absolutely no intention of naturally!!) 

3. If the house will be potentially used as a short term rental option alongside a holiday home is it better it’s purchased through the property business? And what are the long term issues with this in comparison to a personal purchase in terms of inheritance etc? Appreciating that there would be corporation tax to be paid on any future capital growth if and when the house was finally sold. 

There are probably a load of other questions I should be asking and other matters to consider, however, what would anyone advise?

I really appreciate you all taking the time to read this monologue!!