Buying a share in my parent's house

NoelAM2

My elderly parents live in a house valued £700k, and I am looking to move back home for a while

They urgently need £200k to help my brother out, who is going through a divorce.

Could I get a mortgage to buy a share of the family home, say 30 or 35%, for £200k? I would be living in the home. There is only my brother and me in line for an inheritance when that day eventually comes.

The_Unready

Short answer: nope.

Browntoa

More complex than you think :- 

Probably wouldn't get a mortgage 

Possibly classed as "deprivation of assets" depending on the age of your parents

Possibly tax implications , transfer of property to surviving spouse is tax free .

What happens if you cannot pay the mortgage on your share .

NoelAM2

The_Unready said:

Short answer: nope.

Really? Is it impossible to raise finance to buy a part share in a property?

NoelAM2

Browntoa said:

Possibly classed as "deprivation of assets" depending on the age of your parents

Not looking to rely on the council for elderly care. My dad has a generous public sector pension that should cover that

user1977

NoelAM2 said:

The_Unready said:

Short answer: nope.

Really? Is it impossible to raise finance to buy a part share in a property?

You can't mortgage a bit of a house - how would the lender repossess and sell it? It would need to be a mortgage by all the owners - and generally lenders don't like elderly borrowers joining in to this sort of thing.

Why can't your brother get the money from elsewhere? Presumably he needs the money in his divorce because he's deemed to be able to afford it?

The_Unready

^^^^^^^^

Wot they said.

NoelAM2

user1977 said:

NoelAM2 said:

The_Unready said:

Short answer: nope.

Really? Is it impossible to raise finance to buy a part share in a property?

You can't mortgage a bit of a house - how would the lender repossess and sell it? It would need to be a mortgage by all the owners - and generally lenders don't like elderly borrowers joining in to this sort of thing.

Why can't your brother get the money from elsewhere? Presumably he needs the money in his divorce because he's deemed to be able to afford it?

Could I just buy the whole house for say £500k, and let my parents live in it rent free?

user1977

NoelAM2 said:

user1977 said:

NoelAM2 said:

The_Unready said:

Short answer: nope.

Really? Is it impossible to raise finance to buy a part share in a property?

You can't mortgage a bit of a house - how would the lender repossess and sell it? It would need to be a mortgage by all the owners - and generally lenders don't like elderly borrowers joining in to this sort of thing.

Why can't your brother get the money from elsewhere? Presumably he needs the money in his divorce because he's deemed to be able to afford it?

Could I just buy the whole house for say £500k, and let my parents live in it rent free?

Lenders aren't keen on that sort of arrangement either (doesn't look good to be kicking the elderly onto the street when their wayward children get into money problems).

Can't you do something directly with your brother? Doesn't he have property?

canaldumidi

£200K due to a divorce? I can only imagine that this is for him to use as a deposit(or cash purchase) to buy a property for himself as his ex-spouse is retaining the family home?

f he does not have those funds, sureley the answer is to sell the family home and for them both to 'downsize'?

newsgroupmonkey_

canaldumidi said:

£200K due to a divorce? I can only imagine that this is for him to use as a deposit(or cash purchase) to buy a property for himself as his ex-spouse is retaining the family home?

f he does not have those funds, sureley the answer is to sell the family home and for them both to 'downsize'?

If there are kids involved, that'll never happen. If she can afford the mortgage, no way is she losing that house.
I'm guessing here that he wants to keep the house, but needs to buy her out.