Would this request be unreasonable?

[benetint]

I've thought about asking my dad something for a couple of years now but I don't know if it would sound rude or demanding. He lives abroad but still owns our old family home in the North East which he rents out. He's had a few bad experiences with tenants. We currently rent in the West Midlands in an area we can't afford to buy. I thought about asking my dad if he'd considered selling his north east house, buying in the West Midlands where we would live in the house and pay him rent (either what he was receiving earlier or what we are paying now, whichever higher).

Please tell me honestly if it's an unreasonable request or if you can see lots of potential pitfalls? Thanks so much

Not unreasonable if there's not emotional tie or expectation to move back.

Won't he have to go to some expense in selling his house and buying another in a different area?

I don't think it's unreasonable to ask, but you must be prepared for the answer to be no, and to take it with good grace if it is. It costs a lot of money in fees and stamp duty to buy and sell, and assume he could be liable for capital gains tax on his existing house as well?

Yes that's a good point, I wonder if we could offer to pay those fees/taxes for him? I adore my dad and I'd make it really clear it was completely fine if he said no.

We bought and sold recently, cost us £6k so do bear it in mind.

Ps no desire for him to move back. There's definitely an emotional attachment for me - I get really upset when his tenants abuse the place (but I'd never tell him that)

It is a big ask. The fees of selling/buying, the hassle, and then you're not suggesting paying rent at the market level for the property he may buy.

His house may not be of great emotional significance to him, but maybe having a "base" in his home area is important to him - a reason to visit, a foothold there, etc., even if he's no intention of ever moving back.

I hate the idea of parents financing their adult offsrpings' lives, as it is so infantilizing and lacking in independence, so I'm not unbiased!

I think it's a big ask.

He may have no desire to move back, but he may feel it's there if he wants/needs to. If you have it there are three issues there:

1. It's now in a different area-which may well be more expensive so he may well end up with a smaller property.
2. You're in it, and he may well feel he can't turn you out in the way he'd be happy to give notice to other tenants.
3. Has he got furniture/other things stored at the old house?

I thought OP was thinking of paying market rent for her area. I suspect OP will end up doing a lot of the hassle things too, unless she'd want him to come back to do that, which I don't get the impression she would.
There are the fees-which can add up quickly. Stamp duty, commission etc. can easily add up quickly, so it's not financially equal swap as it were.

And finally, so you have any siblings? Because I've seen an awful lot of resentment on MN over similar deals where a sibling gets the house etc. You also need to think about what happens if he dies or needs the money for something-eg care home fees. You could end up quite suddenly needing to sell the house.

As a Landlord, I think it is an excellent idea. He will have to pay buying and selling fees but you have offered to pay those anyway.
I have no problem with your Father helping you, the Aristocracy do it big time just by sending their children to Eton, so why shouldn't us lesser mortals try and help our DCs? . He will also be getting an excellent tenant.

However, if you have siblings, what will happen when your Father dies? It may have to be sold. These implications need to be taken into consideration and discussed with your siblings.

Your problem is Capital Gains Tax. The house is no longer his only or main residence and therefore will be subject to a charge. . It doesn't matter that it may be the only house he owns in the UK.

I can't tell you what it would be as you'd need to know what he paid and there would be some allowance for any period it was his only or main residence.

There's obviously Stamp Duty , estate agents' and legal fees to consider as well but if the house sells for say £200,000 you won't have £200,000 to spend on another one.

Nothing wrong with asking, as long as you make clear that you're asking if it would be remotely feasible, not demanding that he do it. There are of course any number of potential complications as other posters have pointed out, but either your dad could go away and look at all that in his own time before he makes a decision, or you could look into it together.

Without knowing the rest of his financial situation or what his priorities are, nobody can say if it might be either practical or desirable for him.

Thanks for your help everyone. We would absolutely pay him market rent! I understand what you're saying about having a base. And I do have a younger sibling. It just seems ludicrous when he owns a house that is often rented/occupied by tenants that abuse it or don't pay whilst at the same time we're lining a property tycoons pockets! I just want something mutually beneficial I guess

Meant to say often 'not' rented

Ps slight exaggeration on the property tycoon front! I just know our landlord owns loads of properties and are loaded

But if anything happened to your dad, you'd be homeless, wouldn't you? I know that might happen with a landlord, but it would be a lot to deal with.

I don't think it is a silly idea at all. Assuming of course that you are prepared to treat it as a business arrangement and not take the piss (eg don't ring up and say that things are tight this week can you not pay rent).

But you need to talk to your younger sister first and tell her what you plan to discuss with your father. She may be fine with it, or may not feel it fair. Would you be in a position to buy her out of her share of the house at market rate when your father passes away? Or depending on the value of the property, could he put a deposit down on two properties, one for each of you, and allow you to use your rent to pay off the balance of the property?

The discussion is definitely worth having. Every family should discuss their wishes and estate before the inevitable happens. It may be that your father has been thinking about his will also, and it might be the right time to have the conversation.

Hello everyone. Thanks again for your posts. I asked my dad and he thought it was a great idea! He pays a lot of agency fees each month so he'd be better off by about £400 a month if we did this. We did some research and he shouldn't have to pay any capital gains tax.

I'm relieved but also a bit nervous in case it's a bad idea.

I would absolutely make sure my brother was protected. We'd be able to afford to mortgage half the house if the worse happened and buy him out at market rate.

It's strange because dh's main concern is the opposite - he thinks my bro will do best out of this (ie us paying loads into a house for years and then bro getting half!) it's not something I considered. To be honest I'd do anything for my little bro so I don't really mind. But I can understand dh could be resentful. But then I suppose putting lots of rent in and ending up with half a house is better then the empty rent we're paying now.

I'm thinking aloud really, any advice or thoughts would be great, nothing is set in stone yet!