Buying with daughter

getmore4less

BurtieW said:

I wish I hadn't asked! We are not using all the equity from our house sale, and we run a business so have income, and I am an ex Police Officer so gave a full Police pension.
We just want a large family home with our daughter, son-in-law and grandchildren and want to know how to do it!

You don't have to defend your life read what people say and take onboard anything you have  not though about.

There are always people around that know how you should live your life better than you do.


As  you do have decent pension and other income there are lenders that would consider lending to all of you 

Definitely one for a broker to explore all the options.

as pointed out if you have enough cash between you a loan where you become the lender may work.

there may even be options that are IHT efficient if y ou have significant assets and good income that your assets are growing.

BurtieW

So I maybe reading this incorrectly but it looks like it may be possible if the mortgage lender is protected to enable them to take possession in case of default,  in order to recover the outstanding loan.  This would require the written authority of all interested parties i.e. both us and our daughter/SIL. Once the sale is completed and the lender has recovered the outstanding loan then we would receive the balance which would in effect be our original deposit, any difference between purchase price and sale price (assuming an increase in value) and the amount paid off the loan balance after costs/interest etc. Any allocation of this balance between the four parties could be dependant on a legal agreement made and signed before the initial purchase.
We would be named on the title deeds but not the mortgage, and the mortgage company would be protected. Am I reading this correctly?

getmore4less

Typically you would set it up so that your own/get 50% of the full value(less if the mortgage outstanding is more than 50%) 
the others would get the other 50% less their outstanding debt(or nothing). 
You could additionally have a clause that they have a debt to you if you don't get your 50% of full value.

gettingtheresometime

If you don't need care now and don't expect your daughter to provide care then why move into a property (whether it has a separate annex or not) with her?
If  you want to be near her then buy a totally separate property near by.
As much as I love my mum and son there's no way would I want the arrangement your proposing with either of them

BurtieW

gettingtheresometime said:

If you don't need care now and don't expect your daughter to provide care then why move into a property (whether it has a separate annex or not) with her?
If  you want to be near her then buy a totally separate property near by.
As much as I love my mum and son there's no way would I want the arrangement your proposing with either of them

That's where we differ then. We are very close to her and her family, and can think of nothing better than living together.

davilown

BurtieW said:

gettingtheresometime said:

If you don't need care now and don't expect your daughter to provide care then why move into a property (whether it has a separate annex or not) with her?
If  you want to be near her then buy a totally separate property near by.
As much as I love my mum and son there's no way would I want the arrangement your proposing with either of them

That's where we differ then. We are very close to her and her family, and can think of nothing better than living together.

Then buy with your equity/cash and then give them a private mortgage

Scotbot

BurtieW said:

Local authority contribution to costs? What would these be?

If you require care at some point either carers coming to your house or in a care home then you are expected to pay the local council for this care. Care starts at £75 a week for half an hour and goes up to £1000 a week for a care home.  If you have  over £23k in savings you have to pay for the care in your property and if you have a property or savings then both these have to be used to fund a care home.

If you give away your house or savings to someone else ,this means the money is no longer available to pay the local council this is known as deprivation of assets.  The local authority will take legal action to recover the money. Your family  could end up losing the house. 

xylophone

goes up to £1000 a week for a care home. 

And then some.....even after the "nursing care component" was taken into account, relative's relative was paying well over £60,000 a year ( and that didn't include extras).

xylophone

We are not using all the equity from our house sale, and we run a business so have income, and I am an ex Police Officer so gave a full Police pension.

And you and your spouse will in due course have state pensions as well (have you both checked your forecasts)?

https://www.gov.uk/check-state-pension

Have you  actually explored being joint borrowers and owning the property on a tenants-in-common basis?

https://www.finder.com/uk/joint-mortgages

AnotherJoe

pbartlett said:

there are three options here:

1. the 50k is a gift. give it to your daughter. downside is if she gets divorced and her ex walks away with the lot there is absolutely nothing you can do.

2. the 50k is a loan. you can decide to secure it if you want. in any case, the mortgage company need to know when she applies for the mortgage that she already has a debt of 50k. They may not feel able to offer her a mortgage.

3. you buy the house together but the problems with that have already been described by other posters.

I did option 2 with my daughter (loan secured as a second charge against her house) and had to sign a document for the mortgage company stating i would not live in the property.

OP buying the property and then a private mortgage with daughter/SIL seems the simplest option here ?