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Original poster

Renting from my dad

44 replies

Hellothere19999 · 05/02/2021 13:34

Curious as to whether this could work:
My dad has always had well paid jobs in computing. He owns our family (small) farm and I imagine his mortgage is almost paid off (he is late 50’s). I have found a house that I love, currently renting but this house is £200,000. I have some money saved for a deposit but like most people my age, would need some help from my parents towards a deposit. I’m just curious as to whether a man my fathers age would be able to take out a mortgage for this house in his name but I would rent from him and effectively pay it off. Or would there be a better way of going about it ?

OP posts:
HadEnoughOfGoingForWalks · 05/02/2021 15:59

He could get a regulated buy to let mortgage and rent it to you, I’m doing that for my DS.

Perfect28 · 05/02/2021 16:01

Better to get some help towards the deposit, if you would be approved a mortgage in your own name.

Original poster
Hellothere19999 · 05/02/2021 20:52

That’s interesting @HadEnoughOfGoingForWalks is your son basically just paying the mortgage for you?
Yeah @Perfect28 considering that too tbh just wanted to investigate what could work better.

OP posts:
DuaLipaSuction · 05/02/2021 22:25

Would he be willing to do this for you? Is he married? If so, will he need to change his will?

Elieza · 05/02/2021 22:40

You can get a mortgage right up to retirement age, which will be about 65-67 for him I’d guess. Based on salary/income and ability to pay.

JengaJanga · 05/02/2021 22:42

You say.. I have some money saved for a deposit but like most people my age, would need some help from my parents towards a deposit..........

Really? Do MOST people do this?
Take money from their parents?

DuaLipaSuction · 05/02/2021 22:45

Really? Do MOST people do this? Take money from their parents?

Well most people wouldn't be able to afford to help their DC in such a generous manner no.

blue25 · 05/02/2021 22:46

Get your own mortgage. Why would you expect your dad to do this for you. He has his own life, bills etc.

Almost no-one I know has relied on their parents. We all saved our own deposits & got a mortgage.

AubergineDream · 05/02/2021 22:48

Most younger people who manage to get on the property ladder now have help from family yes. That's why this generation is nick named 'Generation rent' because obvious most people don't have that help so are stuck in rented housing indefinitely

SummerSazz · 05/02/2021 22:49

He would pay higher stamp duty and CGT on any sale and inheritance tax....

AubergineDream · 05/02/2021 22:51

Theoretically he could get a buy to let mortgage and rent to you. However, there can be insurance related issues things liked that, so make sure you read any agreements thoroughly.

He would need to check what happens regarding his will and update this accordingly.

Having help towards the deposit is much more straightforward, although obviously there are situations where this is untenable such as if there are issues getting a mortgage

Perfect28 · 05/02/2021 22:58

Actually yes, many people rely on parental or other help for getting a deposit together. Wages are stagnant, rents are sky high and house prices are huge. Minimum deposits are 10-15% not many people are able to save that much money within a reasonable time.

titchy · 05/02/2021 23:07

@Perfect28

Actually yes, many people rely on parental or other help for getting a deposit together. Wages are stagnant, rents are sky high and house prices are huge. Minimum deposits are 10-15% not many people are able to save that much money within a reasonable time.
But she's asking her dad to buy her a house! With a mortgage! So if OP is made redundant, it's her dad who has the problem of trying to find the money to pay the mortgage. When he's probably thinking about retiring! Not to mention inheritance, stamp duty, capital gains and deprivation of assets issues. Bad idea OP - and very cheeky.

Why don't you look at help to buy or shared ownership schemes.

Alwayscheerful · 05/02/2021 23:14

Most buy to let mortgages prohibit letting to family members.
Could You buy the property yourself, taking out a mortgage in your own name, perhaps ask your Father to be guarantor? Thereby saving on stamp duty.

JengaJanga · 06/02/2021 00:36

Most people relay on family members!?!?!?!

Really, wow! Ok!

Perfect28 · 06/02/2021 09:45

@titchy
Thanks, I had already said she should get the mortgage in her name. I was replying to pp's who seemed surprised that people regularly relied on help from their family to get on the ladder.
@JengaJanga
You seem genuinely surprised, how did you manage to save? Or are you older?

HadEnoughOfGoingForWalks · 06/02/2021 11:02

OP how much do you earn and how much is your deposit?

NoSquirrels · 06/02/2021 13:13

I think it would be better to buy with your dad - as tenants in common/joint tenants - rather than expect your dad to buy you a property. He’s close to retirement age so it’s not a given he’d get favourable terms. If he buys it on a BTL mortgage then most lenders prohibit renting to family members. If you buy together there will be second property tax implications etc.

Do you have other siblings? Would they also need to be considered.

To be honest, if your dad hasn’t offered to help you get on the property ladder, I think you would be wrong to assume he can. A farm can be expensive to run. I wouldn’t assume he’s as well off as you think.

Original poster
Hellothere19999 · 06/02/2021 13:17

Wowwwww, yes I am 30 years old and literally EVERYONE I know who owns a house has only managed to do it with help from family members. Everyone else I know rents.

I don’t really want to discuss what amount I do and do not have, just wondered what would work out better. Don’t really understand why I’m being attacked when what I have discussed is incredibly common in today’s economic climate. You also have no idea how much my father earns/ has saved so in all politeness, bugger off.

OP posts:
Original poster
Hellothere19999 · 06/02/2021 13:18

Thank you for the people with genuine advice, it is just hypothetical at the moment and I’m obviously not trying to fleece my own father. He has offered to help.

OP posts:
Original poster
Hellothere19999 · 06/02/2021 13:20

@titchy as I’ve said, it was strictly hypothetical and my dad has offered to help so it’s not exactly cheeky, thanks.

If I was made redundant etc I imagine I would leave the house and he could rent it to someone else IF we went down the buy to let route, which we probably are not going to anyway.

OP posts:
Original poster
Hellothere19999 · 06/02/2021 13:26

Thank you @Perfect28

And @NoSquirrels it’s not a proper farm, it’s a house with three fields and a barn, hence “small farm.” And yes I do have siblings, one of which my dad has already bought a house outright and when she sells it at a profit he is offering to help me out next. But thank you for assuming my entire life situation 😂😂😂😂

OP posts:
NoSquirrels · 06/02/2021 13:28

@Hellothere19999

Wowwwww, yes I am 30 years old and literally EVERYONE I know who owns a house has only managed to do it with help from family members. Everyone else I know rents.

I don’t really want to discuss what amount I do and do not have, just wondered what would work out better. Don’t really understand why I’m being attacked when what I have discussed is incredibly common in today’s economic climate. You also have no idea how much my father earns/ has saved so in all politeness, bugger off.

I think because your initial post didn’t say your fad had offered to help, but seemed to be full of assumptions he just would be able to. It didn’t sound like it was a discussion you and your dad had already had.

It’s also really common if you’re asking for financial advice for posters to ask what you earn and what your deposit is. For a £200K house you’d need £40K plus fees. If you haven’t saved anything and only earn £20K or earn £40K and have £20K saved it changes the advice you’ll get. So you can’t not offer any info then be annoyed when people make assumptions.

NoSquirrels · 06/02/2021 13:29

@Hellothere19999

Thank you *@Perfect28*

And @NoSquirrels it’s not a proper farm, it’s a house with three fields and a barn, hence “small farm.” And yes I do have siblings, one of which my dad has already bought a house outright and when she sells it at a profit he is offering to help me out next. But thank you for assuming my entire life situation 😂😂😂😂

Bloody hell - read back what I wrote. I made NO ASSUMPTIONS about you, your father or the farm. I asked some questions.

You can’t ask for advice then get the hump when people try to help.

TiddyTid · 06/02/2021 13:31

OP, go to a good broker. Look at Joint Mortgage Sole Proprietor potentially. It will be your house i your name, (no tax issues for dad) your dad effectively a guarantor but you pay the mortgage. After a few years remortgage for yourself. Obviously a risk if you fail to keep up the payments, they will fall to dad. But it's an option.