PIL have a huge gold over us but was this comment too far

[Thisreallysucksass]

I do not want to come across as a ungrateful grabby cow. I am very fortunate.

Long story shortened.

Husband and me met 15years ago his parents had a rental house that we moved into and paid them going rate rent. After a year we approached them and asked if they would consider us buying the house as we loved it. They said yes, but husbands bad credit/ccjs and low wages from both parts meant we couldn't get a mortgage. They said they would let us buy the house with the money we were paying them rent. So that's what we have done. We are very grateful towards them for the generous offer. We have now 15years later paid off the house.
We are expanding our family so have been looking to move, we are moving very close to the PIL, we got a good valuation on our house but the area we want to move to is expensive so we are pushing our limits with what we can borrow. Mil approached me before our house viewing (I am very close with her we speak every day on the phone and they see the DC often)

She said they had been looking for a rental to set them up for there retirement and would we consider this. They would like to put a good Chunch of there money down as a deposit ( less than the value of our current home) on the new house we were certain we wanted to buy. They we keep the house we are in rent it out then spilt the rental amount we will get with them. (The house has got a good rental fuigure due to the renovations we have done) they were very happy with that arrangement and I was to manage the property for them. We spoke and it sounded a great offer and it means we would able to live comfortably I manage the property and they take half the money. Seemed good.

So we have decided to buy the other house but the owners are not in any hurry to move it could be a long while yet. We have involved them in the process.

We went for another viewing yesterday and FIL came, we met the owners of the house and they showed us round the house. FIL will chat to anybody and was telling them about the property they already own.

In earshot of both of us he said "well we have already bought them a house and now we are buying them this one" the owner of the house looked embarrassed and I was gutted by this comment and bit my tounge thinking we are very fortunate and they have been very generous to us. We left shortly after. When we got home I was very quiet and spoke to husband about it, he said his dad was out of order and that it was very hurtful to him what he said. His mum (who does brag about money / possessions) has been telling all her friends infront of husband that they are buying us a new house. He didn't correct her.

Everyday I speak to MIL she reminds me how lucky we are and says how great full we should be, I reassure her we are very much so. But it is brought up all the time. We have bought them a lovely gift to show them how great full we are but this isn't going to go away they have a hold over us.

Now we are considering talking to them both and telling them we feel worthless and see what happends. But we are really thinking to go with our original plan of selling up and doing it our selfs.

So am I being unreasonable at these comments? Shal we speak to them or put up and shut up?

Given the fact your dh was in so much debt with ccjs I would consider that him saying you should give your ILs £40000 is exactly the sort of behaviour that got you and him into this mess in the first place.

The way I am reading this is that not only would PILs be buying 50% of your old house but would also be buying 50% or at least a good %age of the new house. Probably more if your dh has his way by giving away all your profits. I think you should take on board that PILs have not only had £30,000 but would also have had to spend a further £40000 to get it to today's valuation and I am presuming that without the renovations the property would have been pretty worthless as a rental property. So now the property is worth I am presuming somewhere in the region of £215,000 or there abouts. So the profit you have made is around £25,000 after 15 years. Are you sure these valuations are true? I bought my current home about 15 years ago for £150000 and we are moving and all our valuations have come in at 7 figures. I don't quite believe that considering the average price increase over 15 years that you are only making £25k even in a small village. My last house was in a small village and was sold 15 years ago for £120000 and is now up for £450000.

Also there has been talk about using the rental income to pay off your mortgage. Please be aware that not only (unless you have a number of rental properties ) would you not be able to take into consideration the income from the rental property but the mortgage company would in this day and age consider this to be a negative given that they would probably allocate all the expenses you could be in for by owning this second property but not take account of your income from it.

Personally on what you have written either this is a complete wind up or someone somewhere is taking you for a ride.

I would agree with all previous posters that you need to make any new arrangements a business agreement, rather than a gift of any sort, and get it all documented.

curious about the interest Fil added- was that compound interest over twenty years to reach a new owed total or some kind of notional amount. If you repaid early then you actually owed less in that case, so they have had more money there too. Or did the interest rate change.each year in line with the base rate like a real mortgage? Rates were much higher years ago. When you talk about the current price being 100k higher, is it around £215, like others have assumed, or 100k more than the inflated value? How much did you pay in total for the first house worth £120k and how much are you selling it for?

So lets be clear op has paid £30000 to PIL against any future price rises, which PILS have had the opportunity to invest for the past 15 years, £40000 in renovation costs and personally paid out her inheritance to PIL and put some towards the renovation whilst paying twice the rental value of the house and will get back approximately £12500 (PIL want half of the house) whilst dh wants her to pay out a further £40000. I actually think pils have done no one any favours here. BTW my mortgage for the past 7 years has never exceeded £180 per month. I think they would have been better off renting then they could have kept the inheritance and the renovation costs and would hav been paying £400 per month less in rent.

I think personally

I'm struggling to see why the IL's should be congratulated for their generosity here.

They loaned their son & his wife the value of the house - and were repaid with interest.

Surely simply selling the house and using the proceeds towards the next house is the only sensible way forward.

Going halves with IL's on rental property etc is just madness.

Read this thread to see how badly things can go wrong, and also what issues can arise in parent-LL relationships. I know it's not the same, but the number-crunching people did on that thread could help you think through your situation... before you see a financial advisor!

Sorry, it's:
www.mumsnet.com/Talk/am_i_being_unreasonable/1545014-to-be-a-little-suspicious-of-landlord-MIL

i think your pils genuinely mean well. but i also think it's probably best if you don't accept any more help, even though you paid them their money back. i think you should not be giving them 40k, but 10k does sound like a reasonable gesture. look for somewhere you can comfortably afford.

If the PIL mean well and their house was truly a gift why do they need to give them more money and why did the PIL add on their share of future profits + interest. I think the "gift" was more of a way of getting rid of an albatross that needed major money spent on it in order for them to continue to rent the house out.

I would like to know where abouts this village is in the uk that has property that has not gone up substantially like the rest of the uk.

Just to put it in perspective. I bought my current home 15 years ago for a similar sum to what the op paid. For that we got a 4 bedroom detached bungalow in 1/4 acre within a highly sort after commuter belt village, 25 mins into the City of London which is now being valued at £1M + not £215,000. The house we sold for exactly the same sum as op bought at was in a small village miles from anywhere not in the SE yet that is up for £450000 ATM

Can the op return and give us more details