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Original poster

Parents buying a holiday home

67 replies

Avidreader12 · 10/09/2023 07:36

Can anyone advise what might be money/legal implications of this (will be using a solicitor) so only asking for general options before we get to that stage. Retired Parents have offered on a holiday home property prior to this they asked me my opinion and said they would be putting it in my name. I agreed thinking that sounded sensible they will use it as much as they like (me and my son some school holidays) and they want my name on it as they are at the age where they now worrying about inheritance.

All straightforward so far. The bombshell now is they forgot to tell me as they yet to sell their main house they haven’t got the funds to buy it (only a small deposit) and I need provide most of the funds from my savings and a loan/ mortgage on my existing property. They cant get a mortgage on the holiday home as it’s not mortgageable.

They keep assuring me it will all be ok as they jntend to pay me back using their house sale monies (house is still going through work to get it ready for sale not even on market) but they don’t want to make it too formal in a legal agreement.

I feel like I’ve been pushed into this by not been given all the facts at the beginning. Just posting incase I’m overly being cautious.

OP posts:
isthewashingdryyet · 10/09/2023 07:37

Just no. Daft idea. Just say no thanks

Saturdaygirl01 · 10/09/2023 07:39

What?! They can’t buy it then can they if they don’t have the funds. Don't even think about it.

FiveGoMadInDorset · 10/09/2023 07:39

Do not do this, there will be a good reason why the property is unmortgable, if you need to sell it will you be able to?

sorrynotathome · 10/09/2023 07:39

Definitely NO!!

ThroughThickAndThin01 · 10/09/2023 07:40

Don’t do it.

KevinDeBrioche · 10/09/2023 07:40

OMG. No. You say no.

sorrynotathome · 10/09/2023 07:42

They may think they need to rush it through in order to secure the holiday home they have found. But there are lots of holiday homes - they can wait until their house is sold before buying one. Is it a static caravan or similar? Is that why it can't have a mortgage? Either way, I agree it could be difficult to sell on if things go pear-shaped.

Radiatorvalves · 10/09/2023 07:42

No way. Your money needs to be 100% your decision. Read a story in the Times about a couple in Corfu. Brexit and elderly parents mean they’ve sold up at a loss. Depending on where the house is - do you have the right to live there? What’s the red tape?

tanstaafl · 10/09/2023 07:44

The implications are

you will be skint while your parents own a holiday home abroad - I’ll bet they initially ‘forget’ to tell you it’s in their name because of some legal constraint.

your parents feel you owe them this

your parents will not sell their home for less than some ridiculously high price so you wont be getting paid back any time soon.

the debt will turn into a promise of inheritance.

or maybe I’m being cynical?

determinedtomakethiswork · 10/09/2023 07:44

No. They must be crazy. Are you going to end up with two houses then and is that going to create a problem for you?

pd339 · 10/09/2023 07:46

Yeah, you'd be mad to do that

kweeble · 10/09/2023 07:50

No way - they’ll have to wait until they can finance it. Set a boundary and think hard about your relationship with them - it’s unusual for any parent to think this is okay.

Original poster
Avidreader12 · 10/09/2023 07:52

Thank you for everyone’s responses. I would be able to sell but only after they both died. They want it in 3 names ownership, It’s not mortgageable as a chalet and leasehold so basically existing owners are expecting cash buyers. It’s been used as a holiday let which we could do but then comes with a whole set of extra admin, work. I’m still a bit shocked by the whole conversation just trying to be logical.

OP posts:
Pleaseme · 10/09/2023 07:58

I think you want to be careful with chalets. Often they come with a lifespan of twenty years at which point you are expected to replace from the site holders expensive range. How old is it? Also have you considered site fees. They are thousands per year,

HappyAsASandboy · 10/09/2023 07:58

If your parents want to buy a holiday flat, then your parents should buy a holiday flat.

If your parents want to jointly buy a holiday flat with you, then they need to explain to you how it would work and what contribution they're expecting from you. You can then decide whether you want to be part of that plan.

Personally, I don't think I'd want to put any money towards an unmortgaeable property that my elderly parents will live in. That's not a holiday property, it's your parents home?

JustWhatWeDontNeed · 10/09/2023 08:01

Do you actually want to own a holiday home? If it's leasehold are there service charges etc? Who will be responsible for those? Who will be responsible for maintenance?

Will bills for the above be split three ways or will your parents consider themselves "one" and expect you to pay 50/50 if the roof caves in?

I wouldn't touch this with a stick. Seems they're only involving you because they can't access their funds. You call it a holiday home but if they're selling their main residence where will they be living?

JustWhatWeDontNeed · 10/09/2023 08:01

Also valid points above on lifespan of a "chalet".

fruitbrewhaha · 10/09/2023 08:04

God no. I’m cross your own parents are trying to put you in such a precarious position.

It’s a depreciating asset. Don’t buy it.

Beckafett · 10/09/2023 08:06

No absolutely not. I have a colleague going through this where the property is in France and it's a nightmare for her.

CosyFanTucci · 10/09/2023 08:08

Nope nope nope. Remember that if you sell it at a profit (you won’t) you’d be liable for capital gains tax. There is so much wrong with their plan.

isthewashingdryyet · 10/09/2023 08:11

And you will have to sell if either of them need care, as it will be seen as deprivation of assets, so messy situation waiting to happen

it means you can’t marry as a divorce means your bit is also your husbands bit and he will want his share

it is the daftest idea, tell them to holiday like other people and pay for a holiday place each year.

no way would I do this, even if parents get huffy.

can you treat it as a joke, goodness, no mum, what if I have to sell it to put you in a home, don’t be daft hahahahaha

Original poster
Avidreader12 · 10/09/2023 08:13

Thanks everyone yes it’s a depreciation asset have told them this, lease is very cheap compared to a static caravan hence the pressure to have offered before the house sale. It’s in England not overseas (they already own overseas property and that could be whole new thread) They have a flat they are currently living in so chalet would actually. As a co owner I would be co liable for bills/maintaince. In the initial conversation they were planning to own it pay for everything but just put me on it deeds.

OP posts:
Original poster
Avidreader12 · 10/09/2023 08:13

Chalet would still be a holiday home.

OP posts:
50lessfat · 10/09/2023 08:16

Is it abroad? How much is it? Is it a wooden chalet?

We have a holiday home abroad (bricks and mortar) which we intend to live in when we retire. Financially, it’s not been a great investment.

Where are your parents intending to live full time?

I think you may need to consider what they are asking you to do is so extreme that something else maybe going on with their finances.

fruitbrewhaha · 10/09/2023 08:17

If they really want to do this they need to sell their own house first for the money.