Buying a house/property

lelboy123

Hi all,

I was hoping for some advice on my current situation. I am looking to buy a house which needs work doing on it to then sell on at a profit. That is the plan. The advice I need is will I be able to get going on this based on my current situation:

1, I am a full time carer for my dad. I also have power of attorney over him both medical & financial.
2, Due to being a carer for him I am unable to get a full time job. I am therefore claiming Universal credits, carers allowance & attendance allowance. 
3, My dad has savings of just over £100,000
4, I am renting a flat at the moment with my wife.
5, My dad owns his own house (mortgage paid off years ago).
6, My dad is bringing in just under £2000 from 2 pensions each month
7,After doing research my dad's house is worth roughly £400,000

Based off all that is there a way I could get on the property ladder? I've never owned my own place so this would be a first & is all new to me. My dad is happy for me to invest the money this way should we think it is profitable. But first things first - would I be considered?

GDB2222

You mentioned power of attorney. You can’t use that to help yourself to dad's money, unfortunately. 

Of course, if dad is still able to make decisions, he can give you his money, if he wants. It would be wise to involve a solicitor, so that there is no come back later.

If you are a full time carer, will you have time to fix this new house up?

Is it mortgageable?  Presumably, you would need a development mortgage.

lelboy123

Thanks for your reply. Yes I only mentioned the power of attorney to state my situation as clearly as possible. I assumed it had no bearing on it.

My plan would be to fix the house up myself obviously with the help of professional tradesmen as & when needed. I would look to buy fairly local to me as a long term investment/project.

Sorry but this is all new to me so development mortgage is something I know nothing about. I assume I would need a mortgage? Do our savings come into the equation in any way or is it purely income based now? 

Slithery

Would you be living in this property or just doing it up to flip?
You wouldn't be able to use your FTB relief on the stamp duty and would lose this benefit forever as your father already owns a property.

GDB2222

Why not speak to a mortgage broker?

eddddy

lelboy123 said:

I was hoping for some advice on my current situation. I am looking to buy a house which needs work doing on it to then sell on at a profit. 

It's very difficult to make a profit doing that - especially if you don't have previous experience, and even more so, if you'll be hiring tradesmen.

If you have building skills like carpentry, plastering, plumbing, roofing etc, it might be a bit more viable.

I think you'll struggle to find anyone who will give you a mortgage, because of your limited income.

In theory, your dad could... give you a gift of some of his savings, or lend you some of his savings, or be your business partner and jointly buy the property with you. But I think all those options would be very difficult given the situation with the financial power of attorney.

lelboy123

The idea in my head was to flip the house & move on really. Perhaps that isn't as profitable as they make out online then!?

How about some how buying a property to then rent out? I'm just trying to think of ways to make the most of our situation & to get some money coming in. I'm sure my dad would 'gift' me the money if need be. We are close & both wanting the best out of this.

lelboy123

GDB2222 said:

Why not speak to a mortgage broker?

Yes I will be. I just wanted to gather a bit of knowledge before hand ideally.

martindow

Have you got siblings?  If you are given money by your father, would this potentially disadvantage other members of your family?

If your father needed increased care in the future, deprivation of assets could be come an issue.  You are the carer at the moment, which I know is not easy, but if 24 hour became necessary extra care would have to be bought in.

MovingForwards

You have over £35k in savings and are also claiming universal credits? The cut off is £16k.

Is your wife employed? If so, what's her income as you'll be looking at a mortgage off the back of that.

lelboy123

martindow said:

Have you got siblings?  If you are given money by your father, would this potentially disadvantage other members of your family?

If your father needed increased care in the future, deprivation of assets could be come an issue.  You are the carer at the moment, which I know is not easy, but if 24 hour became necessary extra care would have to be bought in.

No I have no siblings - I am an only child. We would always keep a good sum on money at hand for caring costs etc. We're pretty good like that.