Joint venture on purchasing property with parents

NurseMoneySaver1122

Partner and I are looking to buy our first home, and have a decent deposit saved so far (approx. £145,000).  We'd like to stay close to my parents for childcare purposes and and other reasons (not everyone's cuppa, I know!).

We are considering looking at a joint project with my parents; either buying neighbouring properties (difficult to find unless a new build option) or to go in together on a single property with the opportunity to split into 2 properties/extend - very early stage considerations!

For context, parents own their current property and are mortgage-free. Father is 60, Mother is 63. Both still employed. Father is a builder so have the opportunity to do a lot of work "ourselves".

We plan on speaking with a mortgage adviser that we know before proceeding with anything.

Obviously partner and I would be looking to get a mortgage. But for my parents, their money would be "tied up" until they sell.  I know one option would be for them to sell and rent while property searching. But are there any other options where they could be more "ready to go", for example applying for a mortgage and then paying off said mortgage when their house sells?

Apologies for the clear lack of knowledge. Just trying to figure out early options so we know how feasible this would be, and to avoid the situation of finding the right property but their house sale holding things back.

Hope this makes sense.  Any advice would be greatly appreciated

 

TheJP

What's the question here? My instant spidey senses are tingling of deprivation of assets in some way further down the line.

Why go in together? Whats the benefit?

Grumpy_chap

TheJP said:

What's the question here? My instant spidey senses are tingling of deprivation of assets in some way further down the line.

Why go in together? Whats the benefit?

Given the parents' young ages and apparently good health, DoA might not be a consideration.  

The risk might be around future benefit entitlement (OP and partner or the parents), the entangled finances in the event of relationship cessation, or the flexibility if a point is reached that the combined house no longer meets the needs of some in the group.

The OP's initial mention of two neighbouring properties might overcome those potential future issues.
Greater flexibility / broader property choice might be available if the OP and parents were able to settle for two properties simply near to each other rather than immediately adjacent to each other.

maman

If the main reason is childcare rather than multi generational living then just buying two properties in the same area would be sufficient.

This could mean just buying close to parents existing home. 🤔

Hoenir

NurseMoneySaver1122 said:

We'd like to stay close to my parents for childcare purposes and and other reasons (not everyone's cuppa, I know!).



 

There's a difference between close and living in each others pockets though. 

Spikeygran

There are too many things to go wrong, so having your own houses is the safest bet.

No relationship is set in stone, if one of the couples parted company and wanted their share out you'd be in a bad situation. Even with the parents in their own home they may have dreamed of living somewhere else on retirement. You may buy in the same town but you cant guarantee both parties will stay, you might have to move for work at some point. 

I dont think that relying totally on grandparents for working childcare is a good thing, better to keep them as grandparents and for back up during child illness or for when the arranged childcare goes wrong. In retirement they will want to go and do their own thing and not be tied to a weekly rota. There are no guarantees with health when you get to retirement, they may want to travel while still fit enough to do so.

Really its just best to buy something you like, in an area you like, thats in your budget.  If its not too far from the grandparents its a bonus.  But its pointless getting stuck in a house that you really didn't like, in an area that wasn't your first choice, just to be convenient.

p00hsticks

I suspect that a mortgage company probably wouldn't be prepared to give permission for splitting one property into two.... 

Devongardener

I think if I were your parents I’d be pretty annoyed at having the huge upheaval of selling, moving into a rental, paying rent when currently mortgage free, then moving again once you have found somewhere to buy - and the alternative suggestion that they get a new mortgage to buy your new joint property is just selfish!     Just buy a property near them and respect their right to their own property and future plans.

Bookworm225

obvious issues:
- if you buy a single property all 4 people would need to be on a mortgage. yes mortgages are available for "old" people but the term is shorter than yours so monthly payments will be higher.
- will a 60 year old father be able to work much longer as a builder and so pass a mortgage application?

- one property, 2 couples, divorce etc as already mentioned 

2 separate "nearby" properties is the better option for your objective of family togetherness 

Albermarle

I agree with the other posters, in that the plans look too messy and could bring possible complications in future.
On a more positive note, if your Dad is a builder that will come in handy when you do buy somewhere !

sheramber

What childcare are you envisaging since both your parents are still working?