how do we get the money?

[rockingthelook]

Due to health issues Elderly parents desperately need to move, their house mortgage free but not hugely expensive, had an offer accepted on a bungalow, however have had 2 buyers pull out due to 'change in personal circumstances'. The vendor of the bungalow said they will wait for a small amount of time, parents house having viwers but not secured another sale yet. Myself and sister both mortgage free but no ready cash, how can we secure the purchase of the bungalow to move them in asap, so worried about their health, mother crying all the time,etc I phoned my bank today who said they don't do short term loans, myself and sister were going to try to get the money, then pay it back as soon as their house sells, can anybody give advice on how we get the money please?

Bridging loan may possibly be an option?

Or reduce the price for a quicker sale?

Take out mortgages on your own properties?

Take out a mortgage on your properties. Pay for the new property. Make sure you get a mortgage with no penalties for early repayment! Then pay back when other property is sold. You have to accept the interest payments on the mortgages while you are paying them. If you run the new property in your names as a business, and own it, you can claim interest against your tax if your parents pay you rent. You then give it to your parents upon the money being received from their property. But see an accountant! We run a holiday home like this. You shouldn’t get a bill for CGT in a short period of time.

Thank you for the advice, much appreciated!

Renting to family members can work, but I'm pretty sure there are some rules to watch out for around the amount of expenses you can offset against tax on your rental income if you're deemed to be renting to them at less than the market rent.

Your parents may also run into some issues with claiming benefits towards housing costs, I think, if that's an issue for them.