Buying parents house .

[Bedsheets4knickers]

My dad lost his job 2 weeks ago. He has no private pension . They own a property of about £160k. I don't live there my younger sister still does. We have about 15k in savings between us . We want to buy the house at full asking price.
We can both afford the mortgage . We want our parents to carry on living there like normal. We would both be 1st time buyers. What's important to us is a) my parents enjoying the decades if blood sweat and tears that have gone into
paying the mortgage b) to get a foot on the property ladder.
Can anyway advise on this situation . His work pay ends in jan then they are relying on pension .
Tia

Why invest £110k in another property? It won't pay anywhere near the equivalent you'll pay in fees and interest, which we'll assume is circa £200,000.

Are you thinking ahead OP? about potential care home fees?

I cannot see any financial advantage of buying their house. They will be entitled to some state benefits. Why not get some advice first and work out what their weekly income and outgoings will be before you jump into this. If the mortgage is paid off why take another mortgage out on the house to give your parents cash. And this amount in the bank will yield comparatively little in interest.

Thank you so much everyone . Such good info. Nothing was being done in the nxt few weeks . I have now changed my thinking . It really wouldn't of occurred to me . We are London renters x

Why buy another property , they might as well downsize themselves and have some cash in the bank or buy an annuity

Agree with lots of posters.
If your sister can afford half mortgage why isn't she paying her way in the house currently ?
If the house is too big they should consider downsizing but any cash capital or rental property they own will be taken into account for benefits but the house they live will not be taken into account.
They would be expected to live off the capital and it wouldn't last long and what would happen then ?
They should probably be entitled to some benefits or the state pension or pension credits on the Level of income you have stated.
If your dad isn't working he won't need to commute, buy work clothes, buy lunches etc so that might mean less outgoings.
What would happen if your sister and /or you lost your jobs and could no longer pay the mortgage - your parents may lose their home.
You would probably have to pay capital gains tax on any increase in price.
You or your sister may not be able to get another mortgage in the future due to this.
I would think very carefully about this.

Can they not equity release?

You and your sister sound quite young, and I think it would be wrong of your parents to accept a hefty financial commitment from you which may well need to change in the future - marriage, dcs etc - and very possibly cause resentment.

Equity release is a con - avoid at all costs

Thing is that if they get a tame solicitor, the arrangement can be reviewed very cheaply every 5 years or so : at the same time as checking wills and POA

No not young just blind leading the blind.

Equity release is presented as an option but it's really daylight robbery IMHO so don't go for this. I once thought it was a good idea till somebody put me right. The trouble with the means tested benefits for the elderly is that your sister's wages will be taken into consideration as she is an earning member of the household. I'd say don't jump into anything till you've considered options. Don't get a mortgage on the house as interest rates will eventually rise and as others have said the lump sum will go down and be held against them when they apply for benefits.