Tenants in Common - does it work with a parent .

[Deleted User]

Looking to buy my first  property after a few years living with my 68 year old dad .

Saved enough funds to buy a two bedroom house for myself with a small mortgage ,  but can’t really leave my dad where he is as the area is getting worse with robberies and open drug dealing  (plus hes struggling with the stairs ).

She has mentioned buying a larger property in a better area together ( tenants in common ) but not too sure who this would work further down the line if she needed full time care  . 

The other option would be to take a bigger mortgage and my dad rent his  house to help out but not too sure either of use are up for being landlords. 

 I am first time buyer and have around 10K in a help to buy isa  , my deposit is over 50% .

Just need to get out of the area but the guilt of leaving him behind would mean me travelling back a couple of times a day to help out .  

SDLT_Geek

[Deleted User] said:

Looking to buy my first  property after a few years living with my 68 year old dad .

Saved enough funds to buy a two bedroom house for myself with a small mortgage ,  but can’t really leave my dad where he is as the area is getting worse with robberies and open drug dealing  (plus hes struggling with the stairs ).

She has mentioned buying a larger property in a better area together ( tenants in common ) but not too sure who this would work further down the line if she needed full time care  . 

The other option would be to take a bigger mortgage and my dad rent his  house to help out but not too sure either of use are up for being landlords. 

 I am first time buyer and have around 10K in a help to buy isa  , my deposit is over 50% .

Just need to get out of the area but the guilt of leaving him behind would mean me travelling back a couple of times a day to help out .  

Who is the "she" you mention twice?  Your dad?

If you and your dad buy together then you would not benefit from first time buyers' relief for stamp duty land tax.  If your dad keeps his/her house then the extra 3% SDLT would apply to the joint purchase.

[Deleted User]

SDLT_Geek said:

[Deleted User] said:

Looking to buy my first  property after a few years living with my 68 year old dad .

Saved enough funds to buy a two bedroom house for myself with a small mortgage ,  but can’t really leave my dad where he is as the area is getting worse with robberies and open drug dealing  (plus hes struggling with the stairs ).

She has mentioned buying a larger property in a better area together ( tenants in common ) but not too sure who this would work further down the line if she needed full time care  . 

The other option would be to take a bigger mortgage and my dad rent his  house to help out but not too sure either of use are up for being landlords. 

 I am first time buyer and have around 10K in a help to buy isa  , my deposit is over 50% .

Just need to get out of the area but the guilt of leaving him behind would mean me travelling back a couple of times a day to help out .  

Who is the "she" you mention twice?  Your dad?

If you and your dad buy together then you would not benefit from first time buyers' relief for stamp duty land tax.  If your dad keeps his/her house then the extra 3% SDLT would apply to the joint purchase.

Sorry didn't notice I put She until it was too late and now unable edit the page  .

 Thanks for pointing out about the  stamp duty relief ,  it  would be quite a hit  as coupled with the help to buy ISA bonus it would be around £15k extra I would be paying . 


 

HampshireH

Buying together would be best and selling his home, rather than renting his out.

If you have 50% deposit presumably he has equity in the house and so neither of you would need a mortgage?

Yes you would lose the first time buyer discount for stamp duty.

The HTB ISA pays up to £3k on savings of £12k but purchases are capped to £250k or £450k (London)

So overall you may "lose" £15k but your saving 50% of the purchase price by going halves with your dad. 

You would also save on the letting costs for compliance/repairs/void periods and management fees compared to if you rented his out

wend33

I would say buy a house together as tenants in common and also draw up a declaration of trust. Also make sure you both have wills which clearly state who gets what from your estate should you die. If he had to go into care the local authority should only be able to claim any costs from his share of the property.

theoretica

Another option - worked well for a friend but hard to find, might be buying two properties next to each other.

csgohan4

theoretica said:

Another option - worked well for a friend but hard to find, might be buying two properties next to each other.

Annex would be an option, but 2 houses nearby would be an expensive option

thegreenone

theoretica said:

Another option - worked well for a friend but hard to find, might be buying two properties next to each other.

It might be worth leafletting in this case.  NDN's may want to sell but waiting for their neighbours to sell first.  Not unknown.  

[Deleted User]

HampshireH said:

Buying together would be best and selling his home, rather than renting his out.

If you have 50% deposit presumably he has equity in the house and so neither of you would need a mortgage?

Yes you would lose the first time buyer discount for stamp duty.

The HTB ISA pays up to £3k on savings of £12k but purchases are capped to £250k or £450k (London)

So overall you may "lose" £15k but your saving 50% of the purchase price by going halves with your dad. 

You would also save on the letting costs for compliance/repairs/void periods and management fees compared to if you rented his out

Was unaware of the cap of 250k on the HTB ISA , the properties I have been looking at are in the 270 - 300 range .

 If the split was not in 50 /50 but more like 30 - 70 ( in my favour )  how would this work in regard to if care is needed in the future  .

The original plan was  my dad sell his eventually and help me use the funds to pay the mortgage on a bigger property / conversion but  would the council go off the house price at the time of sale or what the house price would have been if he kept it ?

HampshireH

[Deleted User] said:

HampshireH said:

Buying together would be best and selling his home, rather than renting his out.

If you have 50% deposit presumably he has equity in the house and so neither of you would need a mortgage?

Yes you would lose the first time buyer discount for stamp duty.

The HTB ISA pays up to £3k on savings of £12k but purchases are capped to £250k or £450k (London)

So overall you may "lose" £15k but your saving 50% of the purchase price by going halves with your dad. 

You would also save on the letting costs for compliance/repairs/void periods and management fees compared to if you rented his out

Was unaware of the cap of 250k on the HTB ISA , the properties I have been looking at are in the 270 - 300 range .

 If the split was not in 50 /50 but more like 30 - 70 ( in my favour )  how would this work in regard to if care is needed in the future  .

The original plan was  my dad sell his eventually and help me use the funds to pay the mortgage on a bigger property / conversion but  would the council go off the house price at the time of sale or what the house price would have been if he kept it ?

So you won't benefit from it anyway you will just get your cash back plus the miniscule amount of interest.

So you will need to find the difference if you were relying on the bonus to top up your share