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Original poster

FIL selling property to us

36 replies

seonollaig1984 · 21/12/2021 00:07

Bit of a weird situation. FIL lives alone (not married) has a house worth about 525k. Never had a private pension so struggling on state (is 73 now). Dh and I are lucky enough to own our home (no plan to move) outright and have about 100k in savings. Dh has 1 sibling (they don't own their home). We've been thinking recently if we could buy FIL house to give him some money back so he could enjoy his life and have some luxuries . He is very set in ways And won't move. Could we buy FIL house from him so he could have money now then sell when he is no longer here? Can he gift us money for proceeds? We are currently helping him out / subsidising (not much but meals out/ food/ holidays etc) so wondered if there was another way? Can anyone advise? Thank you

OP posts:

Original poster

seonollaig1984 · 21/12/2021 10:27

@titchy
That's a good idea. Thank you

OP posts:

Plantstrees · 21/12/2021 10:46

I am a professional with extensive experience in this area.

Please ignore all the posters suggesting a commercial equity release - it is not a good idea in your FILs cirumstances as its a very expensive route in the long term. This type of equity release is best for older people without any children.

Please talk to a solicitor. It is possible for you to buy your FILs house but their will be tax consequence for both you/DH and FIL and so finding the best solution for everyone is paramount to ensure you aren't accused of doing anything untoward later on. Find a local solicitor with experience in Inheritance Tax planning and you should be able to resolve this fairly easily.

On a personal note, I think buying your FILs house in order to provide him with cash is an excellent idea and I don't understand why so many people think otherwise.

TheYearOfSmallThings · 21/12/2021 10:49

I definitely think you need to discuss all this with the sibling who doesn't own a house. If I were in that position I would not necessarily welcome a well intentioned SIL making plans to buy the family home.

Original poster

seonollaig1984 · 21/12/2021 10:50

@treesandweeds
Not being dodgy at all. We don't want his money, but we also would want to look after our interests. Tying up our savings in a house for 15-20 years potentially would mean we'd have no cash available. So just trying to think of ways to make if fair for everyone.

OP posts:

florentina1 · 21/12/2021 10:51

If he needs care, you will find yourself paying for it. He would not be entitled to funding as he would come under the umbrella of “deprivation of assets” this could run to hundreds of thousands.

Take very careful legal advice before you do this, it was s minefield

Original poster

seonollaig1984 · 21/12/2021 10:53

@Plantstrees
Thank you. You've captured our intentions well. He definitely wouldn't use an equity release scheme as he knows of people who have and it cost them a lot of money!

I suppose lots of people are asset rich and case poor these days. I will ask dh to go with his dad to see a solicitor.

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Viviennemary · 21/12/2021 10:54

I agree with seeing a solicitor. As this could have implications re tax.

ElliePascoe · 21/12/2021 11:02

If the house is worth £525k and you only have £100k in savings, how are you planning to finance the rest of the house purchase? With a BTL mortgage? In that case, will you be charging rent to FIL to cover the mortgage repayments? And wouldn't that leave him no better off than he is at the moment (assuming that he currently owns his house outright so has no mortgage payments)?

caringcarer · 21/12/2021 11:03

Recipe for disaster. If he is leaving his house to your DH, can't you just help him out financially now? My dh help out his Mum. She has made will leaving her home jointly to DH and his brother. Both help her out now. She is 80.

Flowers500 · 21/12/2021 11:31

@ElliePascoe

Yeah, this. The finances don’t seem to add up to me, you don’t have enough money to buy a second home of that value?

trumpisagit · 21/12/2021 12:17

Tbh I would encourage him to move.
The house is going to become a burden.
When my Mum died my Dad downsized from 4 bed detached to 3 bed semi on a quiet cul de sac.
He still worried about the garden etc and has more recently moved into a managed retirement flat.
It meets his needs, and I am glad he is being sensible.
I would strongly encourage him to move into a more suitable property rather than helping him stay in an unsuitable one.
Does he currently have a downstairs bedroom and bathroom? How long can he cope with the maintenance of house and garden?

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