Buying My Parents' House and Renting Back to Them

theartfullodger

p00hsticks said:

theartfullodger said:

richm86 said:

Grumpelstiltskin said:

Do they claim any means tested benefits?

If so renting from family tends to be a no no.

At the moment they are both still working and are taking in net around £5k per month between them. My father will have to retire soon and take his pension though. 

Have to retire - job enforced retirement or medical/personal choice?

State pension or private pension?

State pension brings <snip> .....free prescriptions. (thank you you generous taxpayers you, I'm 76).  Prescriptions probably saving me a lot of £££££

Taxpayers in all countries are even more generous when it comes to prescriptions - free from the age of 60 in England and free for everyone registered in Wales, Scotland or Northern Ireland

Absolutely, was aware, ....but thanks, quite right.  Who's been in charge alledgedly running things?  Do remind me  , slipped my mind....

Bookworm105

theartfullodger said:

Absolutely, was aware, ....but thanks, quite right.  Who's been in charge alledgedly running things?  Do remind me  , slipped my mind....

last time I checked each country had been a different colour for a long time and controls its own rules

markin

Why are there out goings so high? Between the 3 of you you should be able to save up 140K

Is the a lump sum from the pension?

ognum

If you are married and end up splitting from your partner you parents house will be considered a marital asset and they could lose their home.  This is not a simple decision.  Do you parents have any savings, can you father take a lump sum from his pension?  Could they downsize?

doodling

Hi,

Wouldn't this be out and out illegal as an unregulated sale and rent back deal?

MEM62

The BTL deposit is 25% and you will have the higher SDLT is you already own a property.  With that and your legal fees I do not think that £50K is sufficient to get you started.  If your parents sell you the house cheap there will be a CGT consideration.  In addition to the tax that you will pay on the rent you will also have a CGT bill when you sell.  Once you have dealt with all that you then have all the considerations of being a landlord, some of which have been alluded to above. 

If you can make all that work you might be in with a chance.         

sheramber

You also need to consider what happens about the house/ mortgage if you die or become unable to work at some point.

Silvertabby

richm86 said:

Grumpelstiltskin said:

Do they claim any means tested benefits?

If so renting from family tends to be a no no.

At the moment they are both still working and are taking in net around £5k per month between them. My father will have to retire soon and take his pension though. 

On that sort of income and a io mortgage/ little savings they must be used to living well.  Would they be able/willing to pay rent once your dad retires and his salary is replaced by a (presumably) lower pension?