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Mum and Dad’s house & building a granny flat

Ellalou
Posts: 70 Forumite

My mum and dad are 67 & 65, both nearing retirement.
They live in a large semi detached house, worth approx 300k. They have 150k outstanding, roughy on interest only. They do not have the funds to pay this off when the deal ends in 2 years.
We are thinking of buying their property and considering whether we could convert the garage at the side into a granny annex for them to live in.
My dad owns his own building company so could potentially do the work over the next couple of years before selling to us.
We would then buy at market value, own the property and they would keep the equity for retirement fund, as well as their state / work pensions.
With the money we make in selling our own house, we would build a large rear extension onto the house (it is on a large corner plot with big garden)
Is this a feesable idea? I understand there would be planning permission etc. involved.
What other implications may there be in terms of parents living with us?
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Comments
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My parents have 60-70k in savings just now that they could use to start the project0
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Who's going to be paying to build the annex? How would that compare to buying a pre-built flat somewhere locally?
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I think it sounds amazing and it would be nice to have them close so you can support them as they get older. I would just check planning 1st. Get all the plans drawn up, get them passed and then make a final decision. But good luck sounds fantastic if you can do it why not ?
Ref tax and pension implications I honestly don't know but someone will be here soon to help.Happiness, Health and Wealth in that order please!:A0 -
Herzlos said:Who's going to be paying to build the annex? How would that compare to buying a pre-built flat somewhere locally?We could potentially make £100k in equity so could put down a good deposit when we buy and also have money to extend.0
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Herzlos said:Who's going to be paying to build the annex? How would that compare to buying a pre-built flat somewhere locally?0
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There are a lot of things to consider before becoming a multi generation household. What happens if you and your partner split up, you die and your partner wishes to remarry etc? That is without thinking of the effects of aging and the needs of care in the future. Are there other siblings who would miss out on inheritance or who would forego helping with caring as you live there. If you are all happy having had full and frank discussions then go ahead.2
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If your dad is a builder then OMG why not.
If you can financially do it go for it.
The biggest part of any build is labour. I know I have just had a kitchen extension and wow made a massive difference but OMG the labour costs where astronomical. !
But again I stress get the plans passed and then talk it over with your parents.Do you have any siblings ? If so how do they feel about it ?Happiness, Health and Wealth in that order please!:A0 -
BJV said:If your dad is a builder then OMG why not.
If you can financially do it go for it.
The biggest part of any build is labour. I know I have just had a kitchen extension and wow made a massive difference but OMG the labour costs where astronomical. !
But again I stress get the plans passed and then talk it over with your parents.Do you have any siblings ? If so how do they feel about it ?We have an architect my dad knows who would draw up plans, he has done many jobs with him.I have 3 other siblings, the main thing we want is our parents to be settled and not have a mortgage to pay. It has been a worry thinking if they will need to sell up and move out of the area. Obviously we would all need to discuss further but initial thoughts were that it would make mum and dad settled and happy and we wouldn’t need to worry about supporting them financially0 -
What do your parents think about this idea?
Do they want to downsize from a large semi to a converted garage? (I know I wouldn’t)As you all live on the same street, there is no obvious benefit, in terms of them possibly needing more support from you in the future.Have you considered buying each other’s houses, effectively doing a house swap? Obviously you’d have to do this legally, but it could solve their problem of the looming £150k mortgage repayment2 -
badger09 said:What do your parents think about this idea?
Do they want to downsize from a large semi to a converted garage? (I know I wouldn’t)As you all live on the same street, there is no obvious benefit, in terms of them possibly needing more support from you in the future.Have you considered buying each other’s houses, effectively doing a house swap? Obviously you’d have to do this legally, but it could solve their problem of the looming £150k mortgage repayment
We also want to sort something so that they don’t have a mortgage payment to worry about.0
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