Parents buying a holiday home

[Avidreader12]

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.

You have to say no to this. You can't put your property and finances into danger because of what they want. They need to sort this out for themselves.

They need to wait until they have the money.

They aren't doing you a favour if you have to pay for it all.

Agree with the future care costs and power of attorney aspects unfortunately when my mum had a stroke last year my dad took on all the day to day admin but mum won’t admit she can’t manage things like she used to. I approached them both re a power of attorney but it’s a no go my mum won’t agree to anything that sees her lose “control” I’m gradually trying to get through to them re sorting their affairs it’s taken a year to persuade my mum that she can’t stay in the house and needed to move to a flat. Im taking a step back for now from them whilst I catch my breath and think about it (they only put the offer in Friday) as I’m torn between a supportive daughter and them taking the piss, I also have a son to consider financially. I have seen the area of the holiday home it is lovely and the property doesn’t need work it’s just the wrong time to try to buy it. I wanted them to have sold their house first before making such big decisions.

Am I understanding this right? They have a house they are selling, another flat they plan to live in, a third place overseas, and they want you to buy them a holiday shed as well?

This plan is batshit. Tell them you don’t have the money. Buying a holiday chalet is a terrible plan anyway, they are a money pit and will need replacing in a few years anyway.

Just say you can't get a mortgage at the moment

Just no. Stupid idea.

I would never ask my Dc to borrow against the roof over their heads, you and your Dc. Especially not to buy an extra holiday property. You just don’t.

If they are only just getting ready to sell their house it could be 6 months or more before they sell. You only have to glance at the threads on the Property board: people are taking ages to find a buyer, ages to reach a sale, chains collapsing, sales falling through.

I would just say “I don’t feel comfortable securing a loan against the roof over our heads. Let’s work fast to get your house sold and hopefully at this end of the hol season the chalet won’t sell till you have the money, or we can look for another one just as lovely”.

Update I’ve mentioned that they should investigate a secured loan or personal loan on their house that’s waiting sale before I commit to remortgaging my own house I hope this might make the penny drop that with the current interest rates the cost of borrowing is high and is therefore unaffordable. Also Im pushing them forward to get their house ready for sale.

Instead of saying, ‘before I commit to remortgaging my own house’ why don’t you say clearly, ‘I will not be remortgaging my own house.’

And instead of saying they should ‘investigate’ a loan, tell them they will have to get a loan or sell their house before they buy a chalet. Or they can’t afford it! So they won’t be able to buy it!

I think you should be more direct with them whatever the fallout is.

OK, OP - but be prepared for their next reason why it will all be OK...so be prepared to be assertive about your own boundaries and the risk you will not take.

Be prepared for 'yes but all this will be yours!'.

Which is a) not guaranteed, not by a long chalk, and b) not relevant - it is your current home that needs o be your priority, not dreams of inherited holiday chalets!

I would be absolutely wounded that my parents would be willing to put me and my son in such an invidious position for the sake of a poxy chalet. Why aren't you angrier?

I was recently reminded of this thread, the outcome was that my father booked a joint mortgage appointment with the Halifax behind my back, it seems he was able to do that as he was named on my title deeds although the Halifax did not know that I held 100% title of the property in existing deed of trust (after I split with my partner 7 years ago) I made it clear I wouldn’t be remortgaging and the appointment got cancelled the day before the banks appointment. My dad formally withdrew their offer with the estate agent. I then thought about the whole situation and instructed a solicitor to remove my father off my own house deeds which he did agree to sign. My mum took a different view that she couldn’t understand why I was causing so much fuss as everything would be mine when they die. Things have calmed down but 12 months on their house is not up for sale and no further nearer selling or even on the market

Just read the thread with a sense of horror. So glad that you didn't get drawn into this. Your own financial security is of utmost importance and it is just unbelievable how blasé your parents seem to be.

No!

Do not do this. First they do not have the money to buy it so they should not be buying it. Second if it is not mortgageable it will be difficult to resell. Third if it is resold in future there will be capital gains tax to pay etc etc.

@Redburnett old thread from last year!

Op has updated so maybe Rtft!

They sound completely reckless!

She couldn't understand why you wanted your father to be off the title deed??? Even though he had made a joint mortgage appointment without your knowledge!

You have done the right thing.

It's NO.