buying a house with my daughter

DaveCaz

Hi,
My wife and I have a small flat and savings, in total about £250,000
My daughter, husband and son have a rented house and want to move.

Can we put up the deposit and they have the mortgage so we can buy a larger house for us all?

Many thanks Dave

Slithery

You will all need to be on the mortgage.

DaveCaz

I've looked at that and we are both approaching retirement.  Not sure we would get a mortgage!!!!

MaryNB

There are a few lenders who may grant mortgages to those past retirement age but you would probably have to show how you will pay it back when not receiving a full salary.

A lender doesn't want anybody on the deeds who is not on the mortgage. If your daughter defaults on the mortgage and they need repossess the house, it makes it more difficult to do so if someone else is also on the deeds but has no relationship to the lender. The alternative is gifting the money but you would have to sign a letter saying you retain no interest in the property and do not expect to be paid back. 

kungfu_navs

MaryNB said:

The alternative is gifting the money but you would have to sign a letter saying you retain no interest in the property and do not expect to be paid back. 

if you gift the amount and also live in the property then this is a gift with reservation, which lenders wont like. there will also be IHT implications if you do this. You may have to pay rent at full market to live there to satisfy the lender and for IHT purposes. 

Tokmon

DaveCaz said:

Hi,
My wife and I have a small flat and savings, in total about £250,000
My daughter, husband and son have a rented house and want to move.

Can we put up the deposit and they have the mortgage so we can buy a larger house for us all?

Many thanks Dave

So you and your wife want to live with your son, daughter, her husband and their son?

That alone sounds like a bad idea and buying together sounds even worse. Don't they want their own space as a family? Don't you want your own space as you move into retirement?

Neil49

I have to say that in a worst case scenario this could be a disaster in the making. 

If the couple broke up and a divorce involved the sale of the property then you could either end up homeless or involved in a complex legal situation.

This may never happen but you should be aware that it's a possibility. 

Emmia

Tokmon said:

DaveCaz said:

Hi,
My wife and I have a small flat and savings, in total about £250,000
My daughter, husband and son have a rented house and want to move.

Can we put up the deposit and they have the mortgage so we can buy a larger house for us all?

Many thanks Dave

So you and your wife want to live with your son, daughter and their son?

That alone sounds like a bad idea and buying together sounds even worse. Don't they want their own space as a family? Don't you want your own space as you move into retirement?

Son in law hopefully - otherwise, I think social services and the police are likely to become involved.

But do they want to do this? I'd not move back in with my parents on this basis.

Tokmon

Emmia said:

Tokmon said:

DaveCaz said:

Hi,
My wife and I have a small flat and savings, in total about £250,000
My daughter, husband and son have a rented house and want to move.

Can we put up the deposit and they have the mortgage so we can buy a larger house for us all?

Many thanks Dave

So you and your wife want to live with your son, daughter and their son?

That alone sounds like a bad idea and buying together sounds even worse. Don't they want their own space as a family? Don't you want your own space as you move into retirement?

Son in law hopefully - otherwise, I think social services and the police are likely to become involved.

But do they want to do this? I'd not move back in with my parents on this basis.

I'm not sure how i managed to write that sentence so wrong!