Advice on what to do with parents house

elloitsme

Hi,

My first post on MSE, I've found this website useful for a long time so wanted to pick the brains of the many informed people here.

I have recently came into some money after the passing of my Nan, 61k, and I am wondering what to do with it. I'm in my early thirties and have this year returned to university, given my previous history with addiction I have nothing to my name in way of property or investments or even real employment history. Anyway that's kind of relevant but not entirely, I am now 3 years clean and want to use this money productively.

I could buy my parents council house with a massive discount, 61%, for a total of £46,800 which would leave a decent amount. I was thinking if I did this I could remortgage their property once I graduate and then use that money to 'flip' a property or two? I have plumbing qualifications and can do other bits and pieces and can call upon multiple family member who are tradesmen. Would this be doable? Would it even be worthwhile?

Or would it be better to use the money to, instead of buy my parents house, buy another property outright and 'flip' or rent it out, again once I have graduated?

Would I even be allowed to get a mortgage on my parents house if I previously bought it outright?

Sorry if this is a bit long winded or if I am asking questions with clear answers.

Thank you all in advance for any advice. 

user1977

elloitsme said:

I could buy my parents council house with a massive discount

No you couldn't. Your parents might be able to though.

elloitsme

user1977 said:

elloitsme said:

I could buy my parents council house with a massive discount

No you couldn't. Your parents might be able to though.

Sorry, I wasn't very clear there. I read on the .gov site that a tenant and  family member who had been living there for three years or more would be able to. I've been there most of my life and have lived there continuously for 6 years now.

seven-day-weekend

If you provided the money for your parents' house, then it would be their house , not yours.  Only they have the Right to Buy and so only their names could be on the deeds.


Why don't you just buy a house and live in it, and then when you have graduated, decide what to do with it?

elloitsme

So the plan would be to put the money for my mother's share as a thank you for all of the help over the years.

elloitsme

seven-day-weekend said:

If you provided the money for your parents' house, then it would be their house , not yours.  Only they have the Right to Buy and so only their names could be on the deeds.


Why don't you just buy a house and live in it, and then when you have graduated, decide what to do with it?

Right okay, I've clearly misunderstood the rules then.

I guess what I want to do is make up for lost years in terms of earning money and having some investments.

elloitsme

This is from the .gov advice page

"Joint applications

You can make a joint application with:

• someone who shares your tenancy
• up to 3 family members who’ve lived with you for the past 12 months (even if they do not share your tenancy)"

Pixie5740

seven-day-weekend said:

If you provided the money for your parents' house, then it would be their house , not yours.  Only they have the Right to Buy and so only their names could be on the deeds.


Why don't you just buy a house and live in it, and then when you have graduated, decide what to do with it?

If the OP put in a joint application with one or both of the parents since the OP has been living there for more than 12 months the OP would be a joint owner. 

Pixie5740

elloitsme said:

seven-day-weekend said:

If you provided the money for your parents' house, then it would be their house , not yours.  Only they have the Right to Buy and so only their names could be on the deeds.


Why don't you just buy a house and live in it, and then when you have graduated, decide what to do with it?

Right okay, I've clearly misunderstood the rules then.

I guess what I want to do is make up for lost years in terms of earning money and having some investments.

You haven’t misunderstood the rules. I’m not sure jointly owning the house with one or both of your parents is necessarily the right way to make the most of your inheritance. For starters, do you want to live with your parents forever? 

If you jointly own the property with your parent(s) who is going to pay for buildings insurance? Who will pay for the repairs and maintenance which is all currently paid for by the council? What happens if the property has to be sold further down the line should a parent require care later in their lives. 

Would it be better to open a LISA, depending on your age, and look at some other, more liquid savings and investments? That way you’d have a good amount of money behind you for when you finish university. 

Mardle

Why would you want to put your parents home at risk? If your remortgage & flip properties plan fails they could potentially lose their home. 

Maybe consider buying an auction property outright that you can renovate to either sell, let or live in.

london21

The deed will be in your name and parent’s name.

If you are ok with having your parent’s name in the deed with no financial contribution.

Alternatively find another property.