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Assisting parents with house purchase
brewster1962
Posts: 1 Newbie
Hi,
My first post and I'm looking for advice please.
Situation is as follows: parents own house outright (worth about 120K) but due to illness they need to move to a bungalow (which will cost about 150K). They are on a small pension and will be unable to secure their own mortgage. I wish to help them by taking out the 30K mortgage needed (I have no mortgage and own my own house outright). They will make a small contribution to the monthly payments.
Does anyone have any advice on the simplest way to achieve this - what implications are there for me taking out a mortgage on a place that I will not live (obviously it's a different situation to BTL). Or am I thinking too hard about this and in reality will it be straightforward? Also, I have a sister, so will there be any inheritance isues when that time comes (she would also like to contribute a little each month)?
Many thanks for any responses.
My first post and I'm looking for advice please.
Situation is as follows: parents own house outright (worth about 120K) but due to illness they need to move to a bungalow (which will cost about 150K). They are on a small pension and will be unable to secure their own mortgage. I wish to help them by taking out the 30K mortgage needed (I have no mortgage and own my own house outright). They will make a small contribution to the monthly payments.
Does anyone have any advice on the simplest way to achieve this - what implications are there for me taking out a mortgage on a place that I will not live (obviously it's a different situation to BTL). Or am I thinking too hard about this and in reality will it be straightforward? Also, I have a sister, so will there be any inheritance isues when that time comes (she would also like to contribute a little each month)?
Many thanks for any responses.
0
Comments
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Take the mortgage out on your own home. The rates will be lower and there will be no problems of ownership etc. Then get it documented by a solicitor that you have given the parents a loan and when/ how it is repayable.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0
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As silvercar said. My mum is in the process of doing something similar for my sister.They deem him their worst enemy who tells them the truth. -- Plato0
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remember that getting the loan documented is important, particularly if your parents end up needing residential care some years in the future.US housing: it's not a bubble
Moneyweek, December 20050
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