Family situation

[emilysquest]

My two sisters and I may be about to make a big decision and I wondered about people's thoughts. I have changed a few specific details but the basics are correct. I will start by saying that I am not looking for judgement about my parents' lives and/or behaviour.

Just to state the basic facts (sorry if its a bit complex, I have tried to simplify):

I am the oldest of three sisters.

Our parents are in their 80s and have no pensions, no savings, very little to no income, no property.

They are living in a rented house to which they had to move late last year when their previous landlord's family sold the previous rented house which they had lived in for 50 years. Moving was of course very stressful for them.

I have long supported our parents financially. Partially for the last 35 years, and almost completely since the start of the pandemic (dad has a business which was closed during the pandemic and is now doing little business). I can afford to continue to do so at the current level, which covers their rent, utilities, living expenses, insurances etc.

Our parents have just been told that the current landlord is wanting to sell the house they are in and so they will have to move again before the end of the year. They are very stressed. They like the house, which meets their specific needs excellently, and they really really don't want to move again.

Mum has put it to the youngest sister that she (my sister) might buy the house they are living in, so they don't have to move. Sisters have all discussed options.

Our financial situations:

I have high income but no capital (have just bought a house for cash myself a year ago and so no lump sum lying around). I have other family financial commitments and cannot afford to pay out more per month than I am currently paying to support the parents.

Youngest sister has enough capital saved up for a deposit for the house, and also could potentially take out a loan.

Middle sister could definitely get a loan secured on her current property which she owns.

We have thought about my two sisters going into a partnership to buy the house, and then they rent it to the parents while I continue to pay the rent (as I already do now and had expected to do indefinitely anyway). I would pay the same rent, so no change to my outlay, but just to my sisters rather than some faceless landlord. Sisters get a house which they can rent again or sell when parents no longer need it.

The three sisters all have good relationships with each other, although all live very far apart from each other so meet up very rarely.

What do people think.

Oh yes, sure, I don't know much about the laws there, but of course those things need to be considered and solicitors involved. One sister does still joint own a property there (not suitable for the parents) so she will know more about that.

One interesting thing is that where I now live, I actually get some tax relief on the money I send to my parents (which was not the case when I lived in the UK, which I used to do).

I think it sounds very complicated and fraught with potential future difficulties, particularly if one Dsis needs to secure mortgage with loan from her own property.

The problem is that there are no good alternatives. I fear that my parents moving again may kill one or both of them.

It sounds as if your sisters would be the ones putting in a deposit and legally responsible for paying the loan for the house. When they eventually sell it they will split the proceeds as agreed between them but currently would get nothing back. So you would in effect be paying the loans without benefit of ownership which doesn't seem fair.

If they can afford to do this without hardship can they consider the loan payments as their contributions to supporting your parents, on the basis that this also an investment for them. You then continue to pay for your parents food and general bills, but rather than pay rent you could pay 1/3 of the loan interest and contribute to any basic maintenance required. So if a pipe bursts, a boiler needs servicing or replacing or just some simple redecorating you pay 1/3 of that. It wouldn't include any major renovations but just keep the property in a decent condition so it was comfortable for your parents now and saleable in the future.

I think the biggest potential issue is for your sisters, since you are happy to keep supporting your parents financially.

One sister has a deposit saved but presumably was hoping to buy her own place with that, while the other sister would take a loan against her own house. Both are risky for the following reasons:

• If you die, they have tenants who cannot pay the rent
• if they hit financial difficulties, they have interests tied up in property they can't sell
• if their marriages fail, their spouses could ask for the property to be considered a joint asset.

I think your parents may need to accept another change, as hard as that is.

I had actually overlooked landlord responsibility, as pointed out by @SMabbutt

What if a drain collapses, boiler goes etc. Your sisters will need to not just finance the repair, but actually organise and oversee it too - from another country.

You would be better to help your parents find a new rental and pay for someone to help them pack and move. They will manage, it won't kill them.

Once again thanks for the ideas. A couple of answers:

If I die the rent/living costs etc for my parents will continue to be paid from my estate for the rest of their lives.

Neither of my sisters is married.

We will indeed have to talk about the maintenance aspect. One sister is regularly in the country where my parents are. The other is there sometimes. In the previous house, which my parents lived in for 50 years, they actually kept up the maintenance rather than the landlord, so I was actually paying for that too, and the parents were organising it, and are used to organising it.

Finding a new rental is of course possible (although difficult, without saying anything too outing, they have a hobby which is really their "life", which requires a certain set-up and amount of space, and a very accommodating landlord, and they were very lucky to find the place they are in now for the price).

My mother is also very distressed at the thought of another move. The last move, which was after 50 years in the same house, was extremely difficult for her, physically and emotionally. And what is to say they won't be moved on again in a years time? They will shortly be in their late 80s, it is going to be risker every time.