Buying parents house.

Sea_Shell

Also, don't forget that when the time comes, the situation may be very different, from today.

Interest rates will be different 
Available mortgage term would be shorter (as you'll be older)
Your income/expenses may be different 
The house may be worth significantly more (or less)


So, it's good to have a plan, and an idea of what you'd like to happen, but you'll only really know your options, once the time comes.

Bookworm105

slenderkitten said:

If the house is worth £150k what would happen with my £50k how do I get that out of the house? 

that is like saying how do I have my cake and eat it

The inheritance comprises a property, not a lump of cash. The only way to get cash out of the property is to sell it.

However, you want to carry on living there so no, you will not get 50k in cash unless you move out and sell up. Your "cash" will be the fact you will not need to borrow an extra 50K in order to keep the house, as 1/3 of it you already own and this is your "cash" deposit for the mortgage you'll need to buy the whole house.

So yes, your siblings will have "free cash" which they can do what they want with.
You on the other had will have a house with a smaller mortgage on it where your £50k invested in it will represent 1/3 of the total value of the property and thus when finally sold that 1/3 may turn into a lot more than 50k real cash if property prices continue to rise. 

if you can't understand this difference then it might be best the property is sold and you each get cash rather than you falling out with your siblings because of a misunderstanding. The way you refer to their individual circumstances already implies there is jealously in play.

sheramber

When the time comes the house  belongs to your mum's estate- not to her or you  or anybody else.

Each beneficiary  gets 1/3 of the value- or the sale price if sold.  - in this example £50k each.

If you wish you can use your £50k as a deposit to buy your mum's house , or another property

 You will need to get a mortgage to make up the price  to buy either your mum's house or another property.

You will need sufficient earnings to be approved for a mortgage and how much mortgage you can get will depend on how much you are earning.

The other beneficiaries  also get £50k each to spend as they wish.

Their circumstances and your circumstances are not relevant for the distribution of the estate.

if you want to have £50k in cash then the house needs to be sold and you find somewhere else to live.

swingaloo

It may be quite a long time in the future before any of this happens so please dont let resentment hurt you. There are 2 sides to everything, you say your siblings have a life whilst you dont. They may be thinking how lucky you are to be living rent free.
Its also concerning that you say your mum is fine now and hopefully wont need care but you also say she would have been dead 2 years ago had you not moved in. If she does eventually need to go into care then its likely none of you will be getting the share so if I were you I would make the most of saving as much as you can while you are living with your mum so that if the house does need to be sold to fund her care you will have savings behind you to help you move forward.

slenderkitten

swingaloo said:

It may be quite a long time in the future before any of this happens so please dont let resentment hurt you. There are 2 sides to everything, you say your siblings have a life whilst you dont. They may be thinking how lucky you are to be living rent free.
Its also concerning that you say your mum is fine now and hopefully wont need care but you also say she would have been dead 2 years ago had you not moved in. If she does eventually need to go into care then its likely none of you will be getting the share so if I were you I would make the most of saving as much as you can while you are living with your mum so that if the house does need to be sold to fund her care you will have savings behind you to help you move forward.

Can you please read what I said at the top of page 6. As again people are commenting when no further comments are required. I will make it clear my question has been answered, I do not require any further information I have all the information I need from this thread!! 

slenderkitten

Bookworm105 said:

slenderkitten said:

If the house is worth £150k what would happen with my £50k how do I get that out of the house? 

that is like saying how do I have my cake and eat it

The inheritance comprises a property, not a lump of cash. The only way to get cash out of the property is to sell it.

However, you want to carry on living there so no, you will not get 50k in cash unless you move out and sell up. Your "cash" will be the fact you will not need to borrow an extra 50K in order to keep the house, as 1/3 of it you already own and this is your "cash" deposit for the mortgage you'll need to buy the whole house.

So yes, your siblings will have "free cash" which they can do what they want with.
You on the other had will have a house with a smaller mortgage on it where your £50k invested in it will represent 1/3 of the total value of the property and thus when finally sold that 1/3 may turn into a lot more than 50k real cash if property prices continue to rise. 

if you can't understand this difference then it might be best the property is sold and you each get cash rather than you falling out with your siblings because of a misunderstanding. The way you refer to their individual circumstances already implies there is jealously in play.

Please read what I said at the top of page 6.

stuhse

Don't forget you or any of your siblings may die before your mum, completely changing the situation. Any plans you make should consider all  outcomes.

Sea_Shell

slenderkitten said:

It would probably be better if you looked elsewhere as you do not like the truthful answers you are getting. You seem to believe that you are entitled to more than your siblings because you are doing all the caring. Surely your mother can see this and is up to her what to do with her money. The fact that your siblings a better off financially than you has no bearing on anything.

I've no idea why you coming out with this, you don't know me or my family, I didn't say i am entitled to more just annoyed at the situation as im the one in the worst situation and gave up my life from where i was living 300 miles away to come and look after her, no-one else would do it and give up their lives and they live round the corner, she would have already been dead if i didn't move in 2 years ago.  I am free to comment on my feelings though it is not part of why I came here.  I came here for advice to be given on a professional level which was easy to understand as i'm a newbie to all this; which was given so i'll go elsewhere to find the info required I don't take info just from one source, so nothing else needs to be said really. 

I think once you start posting about your "feelings" on a given situation, as you did, then you are bound to get replies that take those feelings into account when replying.     

You did bring up the question of what was fair, and said that you feel "aggrieved".

To keep it "professional", would have been to just give facts of the situation and not bring "feelings" into it.

There are many pitfalls about inheriting a part share in a house you live in, and we've just tried to point out some of them so you are aware, and can take everything on board, so that you don't get any nasty surprises down the line.

Hopefully, this thread won't get removed, as I think it does contain valuable information for someone in your position that FEELS like you do.   

slenderkitten

Yorkie1 said:

OP, you should probably ask for this thread to be closed now, given that you are aggressively responding to people who are only trying to help.

The point is i already stated far up the thread that i got an answer and that i am going elsewhere to look into the equity situation, there was the que that there wasn't anything else that needed saying.  Then more started to chime in with personal attacks someone even clearly indicated that i did not gave a reply to what they had asked; i didn't need to give any further information as i already acted upon the advise by this point.

I didnt ask for them to comment like that; they did that of their own accord.  If you can't refrain from saying things that are not really necessary than to keep it about the question, then you shouldn't be on the internet. I won't  have anyone disrespecting me or my family!

Sea_Shell

slenderkitten said:

Yorkie1 said:

OP, you should probably ask for this thread to be closed now, given that you are aggressively responding to people who are only trying to help.

The point is i already stated far up the thread that i got an answer and that i am going elsewhere to look into the equity situation, there was the que that there wasn't anything else that needed saying.  Then more started to chime in with personal attacks someone even clearly indicated that i did not gave a reply to what they had asked; i didn't need to give any further information as i already acted upon the advise by this point.

I didnt ask for them to comment like that; they did that of their own accord.  If you can't refrain from saying things that are not really necessary than to keep it about the question, then you shouldn't be on the internet. I won't  have anyone disrespecting me or my family!

I assume you mean me?

I was only ever trying to help you (and other readers) understand the wider picture about what might happen if you can't afford to buy the house, when the time comes.

Food for thought, as it were.

Hopefully you will have taken the comments on board, even if you don't want to discuss the potential wider issues at this time.

We know some OPs read their threads, without necessarily commenting further. 

These threads are also helpful for others who find themselves in similar situations, so we sometimes "throw stuff out there", as there may be things people haven't thought of.

No disrespect was meant.