Active discussions

Meet the Other Phone. A phone that grows with your child.

Meet the Other Phone.
A phone that grows with your child.

Buy now

Please or to access all these features

Talk
AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

In thinking this is a win win situation? Am I missing something?

226 replies

Arghhhhhhhelpjobinterview · 13/01/2018 23:07

I am not financially savvy nor is my aunt.

Due to funny family ages I have an aunt who is only year older than me. Not really relevant..

I have inherited a small flat, which needs new bathroom and kitchen and general over haul. Ie new plaster etc. However it's got new heating boiler, very warm, good windows Grin

It's too much for me to do up, and it's far to far away, that's not an option at all for.
.me.

My aunt has very tight finances and is desperate for some where to live. She has thought about buying my flat outright which would leave her with no budget to do up the flat.. She would have to get loan off her df or he pays out right for bits and pieces. But she would own flat (long lease).

Or.. I have offered if she pays for the bathroom to be done, she lives there rent free for cost of bathroom plus extra months as a thank you... And so on. Meaning she keeps bulk of capital, to invest... She gets my flat to live in...

And we get something in place legally to say... For every x she invests.. She gets x amount of months rent free. I also get something to protect me.

She gets sanctuary, plus her capital.. I get my flat looked after, council tax and bills paid and slowly done up.. By her but also me.
Looking at this as a ten year project?

Any spokes I'm missing?

OP posts:
WhitePhantom · 13/01/2018 23:50

It sounds like it would be perfect if it all goes well... However there's a lot at stake if it doesn't.

That's the big problem when dealing with family - if it goes wrong, there's an awful lot of bad feeling and a wide range of people involved who are emotionally invested in each party.

Original poster
Arghhhhhhhelpjobinterview · 13/01/2018 23:51

Schnifter I would be looking at it as my pension, I don't have one.. So looking at future rent as pension or future sale.

I don't have an income I can't mortgage it, and I won't be able to get a loan. Dh on low wage also.

Yes I can see that about doing it up. There would have to be a clause about selling it and if I had to sell it before she got her monies worth back in fee rent she would get that back after sale..

She would have had however many years generous rent free as extra thank you for taking it on.. And she gets to keep her capital from not buying it out right.

OP posts:
HolyShet · 13/01/2018 23:51

I think its unrealistic, sorry.

Who decides how the bathroom gets done up, what the budget is, what the value of the work is in rent terms? Is she in a position to finance work in advance in lieu of rental value afterward (guessing this is where her dad will come in?)

Would your partner/spouse not be able/willing to guarantee a loan? You could do the basics to make it habitable at low cost - charge her an appropriate rent that you save to do the future work.

I've known friends and their families fall out catastrophically over similar goodwill based arrangements (because I think it would be very hard to protect either of your interests contractually)

AnnieAnoniMouse · 13/01/2018 23:52

Cross posted with you.

My advice - sell it. Now. If it’s in that bad shape, sell it to someone who knows what they’re doing. Reinvest your inheritance.

TheAntiBoop · 13/01/2018 23:52

You would likely be liable to income tax on the rent she has paid in kind ie the bathroom cost/market value - do you have the cash for that? It could of course be that the income would be less than your personal allowance and you don't need to pay anyway.

Definitely get proper advice before doing anything

Deadlylampshade · 13/01/2018 23:52

Why don’t you just rent it to her and use the money to do the flat up?

If she was living there and spending her money to do it up it’ll feel like her baby and when you sell it’ll be complicated and feelings might be hurt.

Original poster
Arghhhhhhhelpjobinterview · 13/01/2018 23:53

Just to be clear I have no funds to do bathroom or kitchen and I can't rent it like this.

OP posts:
CotswoldStrife · 13/01/2018 23:53

She doesn't get to keep her capital, you are expecting her to use it to renovate your property!

AnnieAnoniMouse · 13/01/2018 23:54

You’d be able to get a mortgage on it if you wanted to, offset against the rental value. But it’s FAR too much hassle if it’s too far away & you don’t know what you’re doing,

honeyroar · 13/01/2018 23:54

Why not decide on what a fair monthly rent would be, multiply it by 12, or whatever, and have her pay it one year in advance - so you have a lump sum to do the bathroom up and she has paid her rent for a year? But do it legally and properly or you could open a huge can of worms if you fell out and the element of trust went.

Original poster
Arghhhhhhhelpjobinterview · 13/01/2018 23:55

Even if I could get the money how on earth do I over sea the work and keep on top of it.

I'm hundreds of miles away with small dc.

She has good taste and I trust her to choose well. She would have capital from her flat sale..

She would retain most of that to invest.

OP posts:
Original poster
Arghhhhhhhelpjobinterview · 13/01/2018 23:56

Honey roar that sounds like a good idea!!!

OP posts:
Deadlylampshade · 13/01/2018 23:56

I just don’t understand what’s in it for her.

I get what’s in it for you, you get your flat renovated but she lives in a flat, spends her time and money doing it up then you sell it and take the money and she’s back at square one.

Original poster
Arghhhhhhhelpjobinterview · 13/01/2018 23:56

Except I could not charge her rent right now as it's not liveable.

OP posts:
TooExtraImmatureCheddar · 13/01/2018 23:57

If your aunt has such tight finances, how is it that she has enough money to buy a flat?

Gemini69 · 13/01/2018 23:57

She'll claim the Flat are her own.....

tread very carefully...

Deadlylampshade · 13/01/2018 23:58

Why isn’t she just renting somewhere else?

Twofurrycats · 13/01/2018 23:59

I'm not sure this is a workable plan. It would really need the fine details nailing down. Timescales, budgets etc. For example, the cost of a b and q cheap bathroom set vs something more expensive. And wear and tear - a new item now may not be all that good in 7-10 years. What would happen if your aunt decided to move out before all the renovation was done?

Original poster
Arghhhhhhhelpjobinterview · 14/01/2018 00:01

She desperately need to leave where she is living.. It's making her desperately unhappy.

She sees it as a sanctuary, she knows it, knows me, she likes the location.. She will have a lump sum from her property sale.. AND she will be able to invest most of it.. In isas etc.. Or wherever..

Rather than buying my flat straight out.. But having no extra money to do it up...
She won't find another property for same price it's very cheap but still nice ish area.
She would get almost immediate relief from her current situation and....

If she didn't like living there she is free to move and she has most of her capital..

OP posts:
Missonihoni · 14/01/2018 00:01

This won't end well at all.

People are pointing out the obvious to you however you think you have the perfect plan.

After ten years the house will be run down again will need another new bathroom the boiler will have packed in.and you will be NC with aunt as you thought she should start paying rent sooner than she thought. You will also come to blows about who should pay what in regards to general maintence.

Good luck

Mxyzptlk · 14/01/2018 00:02

That's a good idea from honeyroar.
That way, the work gets done and you have a normal landlord/tenant relationship, which you'd get legally drawn up.

She has good taste and I trust her to choose well. Within your budget, of course.

Puzzledandpissedoff · 14/01/2018 00:02

Say after 7 years flat all done up.. And she had loads of extra free rent as good will she would have to start paying the going rent

And what happens if she then says her finances are still "tight", that she can't pay rent after all and that she can't afford to move out?

For me there are just too many complications and things which could go wrong. Unless there's some back story you've not mentioned it doesn't seem to me to be your responsibility to provide housing for your aunt, so personally I'd just sell it for whatever I could get and do something else with the money

Original poster
Arghhhhhhhelpjobinterview · 14/01/2018 00:03

She will have a small lump sum when her flat sale goes through that's it. No permanent job to rely on.
She buys my flat out right but will struggle to do work. And have no money left over.

OP posts:
Bunkai · 14/01/2018 00:03

Sell the flat to your aunt. Then she gets to do up the flat to her taste (and her inconvenience and money) while you get your inheritance as cash.

That way she has an asset to renovate, you reinvest and everyone is happy.

Original poster
Arghhhhhhhelpjobinterview · 14/01/2018 00:05

Puzzled if she doesn't use up every penny of this small lump sum coming to her.. She can invest that money.

Even doing bathroom and over seeing work will be hugely helpful to me. If she left I can then rent it out.
I'm in deadlock at the moment. Grinsome really interesting stuff ideas here of stuff to broach with a solicitor..

OP posts: