Buying a share in my parent's house

Sistergold

It is better to let the divorce sort itself out. If everybody gets involved to the tune of £200k it will get very messy very quickly and every one will be dragged down with it. Divorce is so messy you don’t want to meddle. Don’t get me wrong I am not saying family should not help but if you are not careful you will be tied into it. It’s better to help your brother once everything is divided and all that can be lost is lost and anything that can be gained or shared is shared. Just my opinion. 

dimbo61

" My Dad has a generous public sector pension "
With nursing homes able to charge £1200/1500 a WEEK I think Dad,s pension would need to be more than generous.
We know nothing about you, your brother or parents and Income, savings, pensions etc

Maybe seek professional help from Financial Expert or Accountant.
Will parents want to downsize ?
£700K property could be one bed studio flat in Chelsea or 5 bed  detached house in Cheshire.

NoelAM2

user1977 said:

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).

Really? Lenders wont provide a mortgage for children to buy the family home?

canaldumidi

NoelAM2 said:

user1977 said:

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).

Really? Lenders wont provide a mortgage for children to buy the family home?

Children can certainly buy a family home... to make it their primary residence. Most standard residential mortgages require just that - that the mortgagee live in the property. BTL mortgages are different, but usually prohibit letting to family. Then there's 2nd home mortgages, but again, it's assumed that is the mortgagee's 2nd home.

As user1977 says, a main residence for a parent is more problematic precisely because of the issues raised if the mortgage goes into arrears.

But a specialist mortgage broker might find a willing lender...?

Slithery

NoelAM2 said:

user1977 said:

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).

Really? Lenders wont provide a mortgage for children to buy the family home?

But you're not buying the family home, you're attempting to buy part of it without your parents being party to the mortgage

NoelAM2

Slithery said:

NoelAM2 said:

user1977 said:

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).

Really? Lenders wont provide a mortgage for children to buy the family home?

But you're not buying the family home, you're attempting to buy part of it without your parents being party to the mortgage

Not true.

If you go back to post 5, you will see that I could buy the whole house. 

My plain is to live in it as my primary home alongside my parents – who would live rent free.

saajan_12

NoelAM2 said:

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.

Browntoa said:

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

No.. not for the OP buying 30-35% of a 700k house for 200k. That's fair market value, and even old people are allowed to sell their things. They receive 200k so nothing is being deprived. 

If you mean the parents 'helping' the brother, we don't know what form that will take eg a loan or gift. 

Caz3121

saajan_12 said:

No.. not for the OP buying 30-35% of a 700k house for 200k. That's fair market value, and even old people are allowed to sell their things. They receive 200k so nothing is being deprived. 

OP subsequently updated with the idea of purchasing 100% of the property for £500k

OP, if you will need a mortgage, have you spoken to a broker to discuss options for concessionary purchase and your parents continuing to live in the property?

thegreenone

@NoelAM2 Am I right in thinking that you are intending to raise a mortgage of £500k to buy your parents £700k house which will automatically deprive your parents of £200k?  Do your parents think this is a good idea?  Have they discussed this with anyone neutral?

Your parents want to give your brother £200k which will reduce their cash amount to £300k.  Your parents will need to leave the £300k if still available to your brother in their Wills but this money could be eaten up with care fees which means you still own the house and all your brother's share is eaten up with care home fees.  Fair?

 Your parents need serious independent advice on this one.