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Original poster

Brother wants to buy parents a bungalow

101 replies

Dizzy1984 · 20/03/2024 20:19

Hi

So my mum is ill with kidney failure and is struggling to navigate up the stairs.

My brother suggested that he buys a bungalow for them in his name and they pay the mortgage for him.

My dad then said my brother wants to buy their house from them and rent it out. So in effect the money they get given from him for their house purchase will then be spent on paying my brother's mortgage on the bungalow he purchases.

My dad doesn't understand why I'm annoyed by this. Am I out of order and looking at this wrong. My dad always said that the reason he bought the house was for me and my brother so we both have something.

It just looks to me like my brother is the only one winning in this situation. He's effectively buying the house with money that is going to go straight back to him anyway.

I know they don't have to leave us anything but I can't help but feel annoyed.

OP posts:
Coconutter24 · 20/03/2024 20:33

Do your parents currently have a mortgage on their house or is it paid off?

DisforDarkChocolate · 20/03/2024 20:35

Why don't your parents sell their house to buy a bungalow?

You brother is proposing some sort of Ponzi scheme.

3WildOnes · 20/03/2024 20:35

I don't understand why they wouldn't just sell their house and use the proceeds to buy a bungalow?

Peekaboobo · 20/03/2024 20:38

Another one here who doesn't understand why they don't just sell their house and buy a bungalow.

Or get a stair lift fitted.

Or make one of the downstairs rooms into a bedroom.

Your brother sounds like he's trying to do you out of your half of the money to be honest.

Original poster
Dizzy1984 · 20/03/2024 20:38

Coconutter24 · 20/03/2024 20:33

Do your parents currently have a mortgage on their house or is it paid off?

They are mortgage free.

OP posts:
Original poster
Dizzy1984 · 20/03/2024 20:39

3WildOnes · 20/03/2024 20:35

I don't understand why they wouldn't just sell their house and use the proceeds to buy a bungalow?

This is exactly what I said but they didn't seem to understand why I didn't agree.

OP posts:
Peekaboobo · 20/03/2024 20:41

Dizzy1984 · 20/03/2024 20:39

This is exactly what I said but they didn't seem to understand why I didn't agree.

Show quote history

What didn't you agree?

You didn't agree that they needed to sell the house and buy a bungalow?

Or you didn't agree that they should sell the house to your brother?

Because it's not actually on you to agree to any of those things. You can have an opinion but you don't get to agree or disagree with them doing it.

You're not making much sense.

Caterina99 · 20/03/2024 20:42

Seems rather convoluted. Is there some reason why it wouldn’t be best for them to sell their home and then buy a bungalow?

Would your brother even get a mortgage on said bungalow?

Mumski45 · 20/03/2024 20:42

On the surface of it there doesn't seem to be anything wrong with this as long as he buys the house at a fair market price. I would guess that the mortgage on the bungalow will be less than a market rent.

Your parents will have a lump sum in the bank which they can earn interest on which will add to their income to help pay the "rent/mortgage".

Your parents will have a bungalow to live in which will be much more manageable than their current house.

Your brother is buying 2 properties at market value only one of which will receive a market rent the other will be subsidised to the difference between market rent and the mortgage payment.

How is this not fair to you.

If you were to tell me that he will buy the house off them at less than a market price then maybe you have a point but otherwise it seems a sensible solution.

An alternative would be for your parents to sell the house and buy a bungalow. Assuming this would be downsizing they would be pocketing a smaller amount of cash and would therefore have less to invest.

Original poster
Dizzy1984 · 20/03/2024 20:43

Peekaboobo · 20/03/2024 20:38

Another one here who doesn't understand why they don't just sell their house and buy a bungalow.

Or get a stair lift fitted.

Or make one of the downstairs rooms into a bedroom.

Your brother sounds like he's trying to do you out of your half of the money to be honest.

Thank you I said the exact same thing

Stair lift or change one of the downstairs rooms into a wet room/bedroom.

Also once she starts dialysis her situation could improve some.

It's mind boggling and I actually don't understand why they can't see why I'm annoyed.

OP posts:
StedeBonnet · 20/03/2024 20:44

Is your brother buying their house for cash? So then he buys the other house with a mortgage and they pay him back out of the cash? So he then owns both houses? I mean, nice work if you can get it by screwing your parents out of their own money and your sister out of an inheritance. Don't parent understand this?

Fizzadora · 20/03/2024 20:44

So your brother ends up with two houses, neither of which he has paid for?
I think that might be classed as elder abuse.

Babyroobs · 20/03/2024 20:45

What a cf your brother is ! That's pretty low to try to diddle your sister out of half of the house. It could also cause problems if your parents need to pay for care in the future as they would have effectively sold off all assets to then pay the proceeds back to a family member. It just looks dodgy tbh, because that's exactly what it is.

Peekaboobo · 20/03/2024 20:46

OP how old are your parents, what is their health like (obviously I know your poor mother has kidney problems) and have they had a dementia diagnosis?

I say this because if the do what your brother suggests, they are cutting you out of your half. Unless they have dementia, they know this.

Original poster
Dizzy1984 · 20/03/2024 20:46

Caterina99 · 20/03/2024 20:42

Seems rather convoluted. Is there some reason why it wouldn’t be best for them to sell their home and then buy a bungalow?

Would your brother even get a mortgage on said bungalow?

I can't see a reason why they couldn't sell to get somewhere else.

Apparently my brother has looked into it all 🤷

OP posts:
StedeBonnet · 20/03/2024 20:46

Fizzadora · 20/03/2024 20:44

So your brother ends up with two houses, neither of which he has paid for?
I think that might be classed as elder abuse.

Edited

I think he's paid for the parents house but then he'll get his money back through rent on the house he then buys for them. It's totally nonsensical as they could just sell and buy presumably (unless the bungalow is more expensive.)

Anameisaname · 20/03/2024 20:46

Is it possible your parents don't want to sell their house ?
It would be simpler obviously if they sold their house and bought a bungalow themselves.

if they did the suggested arrangement then Your brother would have to pay extra stamp duty on both houses (as they would be secondary residences) and also tax on the rental income (which is effectively what they would be doing). Even at lower rate tax brackets it still represents a hefty reduction in any money and seems a pointless way to effectively "lend" money. It also puts your parents in precarious position as one parent could end up burning through all their savings through care needs

He quite possibly hasn't thought this through

Edited as I misunderstood the brother was buying both properties

Mumski45 · 20/03/2024 20:47

Dizzy1984 · 20/03/2024 20:43

Thank you I said the exact same thing

Stair lift or change one of the downstairs rooms into a wet room/bedroom.

Also once she starts dialysis her situation could improve some.

It's mind boggling and I actually don't understand why they can't see why I'm annoyed.

Show quote history

It is unlikely that your Mum will improve a lot on dialysis. She will be probably need it every 2 to 3 days. She will be exhausted on the day she has the dialysis and the day before and hopefully have a good day in-between. This will be a lifelong issue and I would think it would be sensible to downsize sooner rather than later. This would make it easier on both your parents as your Dad will need to do more and more caring.

EliflurtleAndTheInfiniteMadness · 20/03/2024 20:51

The only reason I can think of to do it this way is that your parents want to take out a big chunk of the equity to use it to pay for living costs or things they want to do.

Maybe you need to approach it from another angle. Its unnecessarily complex and will massively increase the cost your parents pay to purchase the bungalow because they'll be incurring interest they dont need to. Your brother buying their house does shorten and simplify the selling process, but it's ridiculous them not just buying the bungalow. Its convoluted and costly. You could also point out your brother would have to declare the payments they make to him and may need to pay tax on them as they'll effectively be rental income. They can't just pay the person that owns the house regularly without it being considered rent.

Mumski45 · 20/03/2024 20:51

How do pp's think the brother is cutting the OP out. They will have a cash asset instead of a property asset. They can receive an income from this cash asset to pay the "rent/mortgage" on a smaller house which will be most likely less than market rent. If they don't splash the cash then the OP will still get her inheritance in the form of cash rather than a share of a house.

Original poster
Dizzy1984 · 20/03/2024 20:51

Peekaboobo · 20/03/2024 20:41

What didn't you agree?

You didn't agree that they needed to sell the house and buy a bungalow?

Or you didn't agree that they should sell the house to your brother?

Because it's not actually on you to agree to any of those things. You can have an opinion but you don't get to agree or disagree with them doing it.

You're not making much sense.

Show quote history

I didn't agree with selling to my brother.

I get that it's not up to me, but there is other ways.

OP posts:
OnceinaMinion · 20/03/2024 20:52

I assume a bungalow would be cheaper than their house? Then they should sell and release funds so that they can also make adjustments to the new place.
This also might include a rental/storage whilst it all happens.

Money passing through your brothers hands this way sounds dodgy as hell.

VWT5 · 20/03/2024 20:53

Might there also be implications further down the line if your parents are only “renting their bungalow” and one parent then needs to go long term into care?
(and they have a large cash sum invested).

If they actually “own” their own bungalow - a sale prob can’t be forced when another parent is still living there?

Peekaboobo · 20/03/2024 20:53

Bungalows are usually more expensive than houses. All on one level equals more land to purchase.

OP, I get what you're saying.

To me, it sounds as though your brother is trying to get all of the money.

Is that what you think he's doing?

Babyroobs · 20/03/2024 20:54

Mumski45 · 20/03/2024 20:51

How do pp's think the brother is cutting the OP out. They will have a cash asset instead of a property asset. They can receive an income from this cash asset to pay the "rent/mortgage" on a smaller house which will be most likely less than market rent. If they don't splash the cash then the OP will still get her inheritance in the form of cash rather than a share of a house.

Having cash assets would have massive implications if her mum had to pay for care at home or went into a care home. If they still had property then that would not need to be sold to pay for care if her dad was still living in it but if they have significant cash in the bank , half of that can be used for paying for mum's care should she need it.

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