Rent to buy parent in laws home?
Angela84
Posts: 398 Forumite
Hello experts!
I'm looking for some advice for some friends of mine.
I have some friends, a couple (with 3 young children); I'll call them Bill & Jill.
Jill's parents are planning to retire abroad so they have given her their home for Bill and Jill and their kids to rent from them, they've moved in with Jill's grandparents for a few months and then they're off to Spain to their owned holiday home.
Jill's dad is apparently not very good at talking things over properly, but they've been vaguely told Bill needs to up his hours at work so he can afford to buy the house from Jill's parents. The rent to buy scheme has been mentioned. No more info has been exchanged.
Bill earns £18000, Jill is on maternity leave, they have no savings.
They are just doing as told and Bill is now doing overtime when he can.
I wanted to ask if Jill's dad knows something I don't?! What schemes are there that they'd even qualify for?
I'm looking for some advice for some friends of mine.
I have some friends, a couple (with 3 young children); I'll call them Bill & Jill.
Jill's parents are planning to retire abroad so they have given her their home for Bill and Jill and their kids to rent from them, they've moved in with Jill's grandparents for a few months and then they're off to Spain to their owned holiday home.
Jill's dad is apparently not very good at talking things over properly, but they've been vaguely told Bill needs to up his hours at work so he can afford to buy the house from Jill's parents. The rent to buy scheme has been mentioned. No more info has been exchanged.
Bill earns £18000, Jill is on maternity leave, they have no savings.
They are just doing as told and Bill is now doing overtime when he can.
I wanted to ask if Jill's dad knows something I don't?! What schemes are there that they'd even qualify for?
LBM January 2017 £34k will have paid back finally by my DFD May 2021
got my first store card on my 18th birthday, never known a life without the grey cloud of debt looming over me. 18yrs and the end is finally in sight 🤩
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Comments
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how much is the house worth? 18k wont get much
Help to buy ISA for starters is what they can save up for which the governments puts money into."It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"
G_M/ Bowlhead99 RIP0 -
Looks like something Jills dad has made up.
They need to clarify what the proposal is.
Are they really going to be renting the house?
does Jills dad know that means they are a landlord with all the things that go with that.
is this something along the lines when they have paid enough rent they get given the place, that can get very messy.
What he might be proposing is that they call the payment rent but they are really buying the house and Jills dad just want the money quicker.
EG. They sell the house to bill and Jill and become the lender so Bill and JIll have a debt to pay on agreed terms.
this can be preferable to some "rent to buy" scheme as there are fewer issues with being a landlord and if full market value fewer IHT/CGT issues later. if at a discount where there is an element of gift that will become a PET for future IHT calculations.
Also if there is no interest charged on the loan then no income tax implication in the UK.
They will also need to consider the tax implication of the country they will be living in0 -
Hello experts!
I'm looking for some advice for some friends of mine.
I have some friends, a couple (with 3 young children); I'll call them Bill & Jill.
Jill's parents are planning to retire abroad so they have given her their home for Bill and Jill and their kids to rent from them, they've moved in with Jill's grandparents for a few months and then they're off to Spain to their owned holiday home.
Jill's dad is apparently not very good at talking things over properly, but they've been vaguely told Bill needs to up his hours at work so he can afford to buy the house from Jill's parents. The rent to buy scheme has been mentioned. No more info has been exchanged.
Bill earns £18000, Jill is on maternity leave, they have no savings.
They are just doing as told and Bill is now doing overtime when he can.
I wanted to ask if Jill's dad knows something I don't?! What schemes are there that they'd even qualify for?
And Bill & Jill need to grow up and understand whats on offer here and get it established on a proper legal basis.0 -
Maybe its an informal way of the helping bill and Jill to buy a home that also suits them? The parents might be using the rent as an income and have a monthly figure in mind? They need to get an agreement legally done whatever the plan is. If the parents decide to return to the UK etc it could be tricky if there is no agreement to protect them.0
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Thank you for the replies guys. House is worth 265k approx. It's one of throes situations that as a friend I can observe and want to help and advise but ultimately have to just watch it all play out.LBM January 2017 £34k will have paid back finally by my DFD May 2021got my first store card on my 18th birthday, never known a life without the grey cloud of debt looming over me. 18yrs and the end is finally in sight 🤩0
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Jill's Dad knows Bill is lazy and a worry by the sound of it.
To stay a friend, keep out of it.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.0
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