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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:
RandomMess · 14/01/2018 21:59

She should pay you something as she has the benefit of living there or she could pay 50% but own less of the flat and not pay rent.

Def seek legal advice, wonder about for every year of rent free living you receive an x percent increase in ownership.

AnathemaPulsifer · 14/01/2018 22:27

If you owned jointly she would pay 50% market rent.

TattyCat · 15/01/2018 01:02

So if she went as joint owner, would she pay me rent?

Asking this question is exactly why you need to get professional advice, IF you decide to go down that route. But I think you'd be very, very silly, for lots of reasons.

PLEASE just sell the flat to her (if she wants it that badly) and be done with it. To do anything else will bring heartache and angst at some juncture (either you or her). It will become a millstone and the amount of money just isn't worth it (unless you think it might treble in price in the near future).

RandomMess · 15/01/2018 08:06

If it was bought off you, you could then have a private loan agreement (like a mortgage) for her to do the essential work. Again all in writing - not sure if you can have it secured against the property?

Original poster
Arghhhhhhhelpjobinterview · 15/01/2018 09:57

Another option she mooted is to buy the flat, however pay 8 grand worth month by month. She said her df can cope with monthly payments like that but larger chunks scare him.
Ie she pays me 32000 and the rest comes in monthly installations. This would worry me in case something happened to him! But might be a solution

OP posts:
ForgivenessIsDivine · 15/01/2018 10:50

Is df her father or her fiancée? Is she in charge of her financial decisions ?

If she sells her property and gets a lump sum of 50k then she will have this available to pay for the property. Is your property worth more than this? Paying in installments from the sale of her property is crazy.

Is it the case that the flat is worth X but if you spent 5k on the kitchen bathroom replastering and fireboard between the shop and the flat, it would be worth more or is it still unmortgageable? Is the two bedroom plan reasonable and is the size really big enough to make a two bed rental property?

Do you want to become a landlord?

Do you and your partner have a mortgage on your own property? Any equity in the property? If so, talk to your mortgage lender and see if you could release some equity to renovate the new property? Get a loan for the repairs, sell the property, repay the loan and then reduce your current mortgage.

If you are renting then it would not make sense to let your aunt live rent free in your property.

Original poster
Arghhhhhhhelpjobinterview · 15/01/2018 11:15

No dh and I have mortgage and we have no wiggle room to increase it we ate trying ti get it down.
Yes there is enough space to make it two bed.

OP posts:
ForgivenessIsDivine · 15/01/2018 11:31

Let her use as much of her money all in one go to buy as much of your property as she can. You pay for the renovations out of this money but all in one go, don't drag it out. Say the flat is worth 50k, renovations required 10k. You now own 20% of the flat she owns 80%. She remains responsible for all future upkeep and costs. Use the remaining 40k to reduce your mortgage and invest what you save. When the flat is sold, you get 20%.

Original poster
Arghhhhhhhelpjobinterview · 15/01/2018 14:48

Forgiveness that sounds like a good plan too.

OP posts:
FluffyWuffy100 · 15/01/2018 14:52

Just sell the flat, or take out a loan (small mortgage on the flat?) to do the repairs yourself and rent it our properly.

Puzzledandpissedoff · 15/01/2018 15:25

Another option she mooted is to buy the flat, however pay 8 grand worth month by month. She said her df can cope with monthly payments like that but larger chunks scare him

She really IS trying it on, isn't she? Hmm

And why is this "DF" - whether father or fiance - involved at all? If it's her partner I thought you said she wanted to get away from his bad treatment of her (?) and if it's her father ... well, why would he be paying anything towards this?

Original poster
Arghhhhhhhelpjobinterview · 15/01/2018 15:55

Her df is her dad, she has had bad luck and been very ill. Her df is lovely man just not practically minded when it comes to this sort of thing.

OP posts:
Graphista · 15/01/2018 16:20

The best most successful con artists are those that are charming, affable, easy to sympathise with, seem hard done by - bear that in mind op.

Original poster
Arghhhhhhhelpjobinterview · 15/01/2018 16:47

I know but I do have the benefit of knowing my cousin and seen her operate for a life time. Grinshe isn't someone random.

OP posts:
Puzzledandpissedoff · 15/01/2018 16:48

Well put, Graphista

Arghhhhh I confess this is beginning to make my mind spin; why would the proposed £8000 a year come from your aunt's father at all? If she sold her current place, why wouldn't those funds come from her? (And please don't say "she could invest it instead" because her financial issues shouldn't have more priority than yours)

Interesting, though, that the DF is yet another "not practically minded" person involved in this - I'm thinking of your own description of you and your aunt as being "not savvy". Surely you can see that this probably wouldn't have worked even if just the two of you were involved, but that all the other characters muscling in would kill any possibility of success stone dead?

RandomMess · 15/01/2018 16:56

Legal shared ownership would be the only failsafe way to protect yourself. Retain your 75/80 % share and let her buy the remainder at the end of the first or second year either through saving up via her Dad or getting a mortgage. I certainly had a mortgage on my flat above a shop!!!

Original poster
Arghhhhhhhelpjobinterview · 15/01/2018 16:58

I think there may be fees, maintenance owning on her current flat, unfortunately a huge piece of work needed to be done that all flat owner had to pay for this was unexpected.

If I don't sell to my aunt I have the hassle of selling via agent myself months on the market whilst I am covering bills, having it looked it on, etc.
My aunts own flat sale was held up for a small legal detail that was over looked, it's dragged on for ages but hopefully she got over that. If she buys it it's instant.

I wouldn't have her invest money over me investing it.
She is desperate for my flat, I am keen to off load it in some way and have it taken care of, it's just there are a few issues to get round.

OP posts:
Original poster
Arghhhhhhhelpjobinterview · 15/01/2018 16:59

random was it also near take away?

OP posts:
Original poster
Arghhhhhhhelpjobinterview · 15/01/2018 17:01

random

So you mean, if she buys flat for 32.ooo then I still retain a share of say x% owner ship....

She keeps money from her sale to cover renovations, then buys me out for the 8 grand later on..

OP posts:
Original poster
Arghhhhhhhelpjobinterview · 15/01/2018 17:03

If she can't buy me out she pays me rent for the amount I earn, and later on if she sells it I get my % of the profit..

OP posts:
Graphista · 15/01/2018 17:06

So many of us saying this is a bad idea and she's seen you coming... Yet you still seem determined to go ahead. I'm dreading seeing a post in a few months "aunt conned me out of my flat"

Everyone who was ever taken advantage of thought they knew and could trust the person that took advantage.

19lottie82 · 15/01/2018 17:09

“If I don't sell to my aunt I have the hassle of selling via agent myself months on the market whilst I am covering bills, having it looked it on, etc.”

No you don’t, as you’ve already been advised, sell it at auction.

Original poster
Arghhhhhhhelpjobinterview · 15/01/2018 17:10

Give it a rest graphista, it's a big Tricky issue I'm dealing with I'm not doing anything without legal help but at least now have a whole range of options to put the solicitor.

If she can buy this flat it's a bird in the hand. Saves me putting on open market, surveys.. Being let down etc. It will be far easier for me as well. She has had issues with her own sale that should have been done in weeks! It's taken months.

OP posts:
Original poster
Arghhhhhhhelpjobinterview · 15/01/2018 17:11

And as I have already looked into..

Months ago before my aunt said she wanted it I have looked into all other options. Selling it at auction means selling it for less and with auction fees on top, surveys etc.

Selling it to anyone except her means a lot of hassle.

OP posts:
Graphista · 15/01/2018 17:13

Your op asks "am I missing something?" Several of us have said YES! And given you a LOT of things you're missing.

I'm out, there was no need to be so ungrateful and rude to someone who has SEEN situations like this go pear shaped and was genuinely kindly giving their opinion in the hope you WON'T get ripped off.

But... It's your money to lose

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