Buying my parents home

Hi I’m new to the forum and looking for some advice…..
my husband and I have sold our home and moved in with my elderly parents. We want to buy their house and pool our resources to build an extension on the ground floor as they have some mobility issues (they will live with us rent free). 
We have had a full structural survey and valuation done. Property has been valued at 212k (my parents have an outstanding mortgage of 75k). 
We want to purchase for 200k (they owe me 12k for some work they needed doing in 2021 and I have the receipts). 
I want to get a mortgage for 100k and pay a cash deposit of 100k. 
Heard all kinds of stories but just want to know if any of this is possible and where do I start looking for a mortgage 


  • amnblog
    amnblog Posts: 12,388
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    Yes, this is all possible but you need to be using the right Lender so you should be using a good independent broker.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • ader42
    ader42 Posts: 265
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    I strongly suggest buying it for £212k and then them subsequently repaying you the £12k separately.

    Do not let your parents pay for any more work on the house such as the extension, otherwise when it comes to care costs they will be treated as though they still have that money - look up “deprivation of assets” - the council can and do go back as far as they like (30 years) to check for this. The council would then put a charge against your house (once your parents run out fo cash to pay for it) and you would end up with the care home debt.

    The fact that your parents will live with you rent-free underscores this as the council may feel that it is still their house not yours. It would be far more sensible to be clear-cut, build an extension which you alone pay for and then charge your parents rent with a formal market-rate tenancy agreement. Even then, some councils might consider it a contrived tenancy - be careful and take lots of legal advice before you proceed. 
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