Buying house with parent
Discussion
Hi All,
Where's the best place to get advise on buying property with ageing parent? It's something we've been considering for a while. Dad is in his mid 70s, is on his own and lives in a very isolated spot. While he's independent (and driving) now, we'd sooner look at our options before it becomes a distress decision. We'd likely be looking at a 60/40 (Dad) financial split on the purchase of a home suitable for all our needs that can give us both independent living spaces. It's unlikely that we'd be able to incorporate him into our current home without it being too much of a compromise.
We have a good day to day relationship, I deal with all his financial/business interests currently and have done for the past few years. Has anyone else done it and how did it work out? I appreciate there are pros and cons, I'd like to understand both!
Thanks in advance
Emma
Where's the best place to get advise on buying property with ageing parent? It's something we've been considering for a while. Dad is in his mid 70s, is on his own and lives in a very isolated spot. While he's independent (and driving) now, we'd sooner look at our options before it becomes a distress decision. We'd likely be looking at a 60/40 (Dad) financial split on the purchase of a home suitable for all our needs that can give us both independent living spaces. It's unlikely that we'd be able to incorporate him into our current home without it being too much of a compromise.
We have a good day to day relationship, I deal with all his financial/business interests currently and have done for the past few years. Has anyone else done it and how did it work out? I appreciate there are pros and cons, I'd like to understand both!
Thanks in advance
Emma
skintemma said:
Hi All,
Where's the best place to get advise on buying property with ageing parent? It's something we've been considering for a while. Dad is in his mid 70s, is on his own and lives in a very isolated spot. While he's independent (and driving) now, we'd sooner look at our options before it becomes a distress decision. We'd likely be looking at a 60/40 (Dad) financial split on the purchase of a home suitable for all our needs that can give us both independent living spaces. It's unlikely that we'd be able to incorporate him into our current home without it being too much of a compromise.
We have a good day to day relationship, I deal with all his financial/business interests currently and have done for the past few years. Has anyone else done it and how did it work out? I appreciate there are pros and cons, I'd like to understand both!
Thanks in advance
Emma
One of my best friends did this with her mum. They've been living together now for about 10 year (friend is now 55) and it works very well for them but I think it all comes down to the quality of the relationship with the parent and the need for privacy. It's not going to work for all and my friend has a very active social life outside of the home which probably keeps her sane Where's the best place to get advise on buying property with ageing parent? It's something we've been considering for a while. Dad is in his mid 70s, is on his own and lives in a very isolated spot. While he's independent (and driving) now, we'd sooner look at our options before it becomes a distress decision. We'd likely be looking at a 60/40 (Dad) financial split on the purchase of a home suitable for all our needs that can give us both independent living spaces. It's unlikely that we'd be able to incorporate him into our current home without it being too much of a compromise.
We have a good day to day relationship, I deal with all his financial/business interests currently and have done for the past few years. Has anyone else done it and how did it work out? I appreciate there are pros and cons, I'd like to understand both!
Thanks in advance
Emma
.skintemma said:
Hi All,
Where's the best place to get advise on buying property with ageing parent? It's something we've been considering for a while. Dad is in his mid 70s, is on his own and lives in a very isolated spot. While he's independent (and driving) now, we'd sooner look at our options before it becomes a distress decision. We'd likely be looking at a 60/40 (Dad) financial split on the purchase of a home suitable for all our needs that can give us both independent living spaces. It's unlikely that we'd be able to incorporate him into our current home without it being too much of a compromise.
We have a good day to day relationship, I deal with all his financial/business interests currently and have done for the past few years. Has anyone else done it and how did it work out? I appreciate there are pros and cons, I'd like to understand both!
Thanks in advance
Emma
It's difficult to do if you need a mortgage.............Where's the best place to get advise on buying property with ageing parent? It's something we've been considering for a while. Dad is in his mid 70s, is on his own and lives in a very isolated spot. While he's independent (and driving) now, we'd sooner look at our options before it becomes a distress decision. We'd likely be looking at a 60/40 (Dad) financial split on the purchase of a home suitable for all our needs that can give us both independent living spaces. It's unlikely that we'd be able to incorporate him into our current home without it being too much of a compromise.
We have a good day to day relationship, I deal with all his financial/business interests currently and have done for the past few years. Has anyone else done it and how did it work out? I appreciate there are pros and cons, I'd like to understand both!
Thanks in advance
Emma
Thanks Gary, good to know. Feedback from people who've done it is mixed but 'mostly' positive. We don't have kids so hard to envisage having anyone else living in the house, Dad has been on his own for most of his life so is very used to his own space - although has a pretty active social life. The place we'd consider would have to have entirely separate living spaces and, potentially, room to accommodate some sort of care if necessary at a later date. Knowing that we can just look in on him/have a coffee/share some meals and check he's okay would give me real piece of mind. He's pretty easy to have around, although it hasn't been without some moments! I think, for him, it'd be a sense of security knowing we're just the other side of a door to help when he needs it.
Thanks Sarnie, I've dropped you a message.
Thanks Sarnie, I've dropped you a message.
Not as it stands at the moment. But, obviously, we'd want some sort of legal protection in that event (on both sides). Also some sort of protection from IHT - but I gather the IHT threshold for main residence is about £450K or thereabouts. We'd like to understand all those sort of implications but don't know who can advise!
It's £325,000 and then another £150,00 'main residence' band....
You should really talk to a solicitor about your individual circumstances - for example, is your mother still alive? Also if your father will pay rent for living in your property - is there a tax issue if he doesn't? If you have siblings - this can get complicated... or if there are other beneficiaries in his Will.
It's not massively complicated, but you should definitely have an hour with a solicitor to advise you.
You should really talk to a solicitor about your individual circumstances - for example, is your mother still alive? Also if your father will pay rent for living in your property - is there a tax issue if he doesn't? If you have siblings - this can get complicated... or if there are other beneficiaries in his Will.
It's not massively complicated, but you should definitely have an hour with a solicitor to advise you.
We considered this for my mother in law and all decided in the end that a separate small house or flat very near by was the better option (we ended up with a 2 bed flat 5 mins walk away).
It was probably slightly cheaper than buying a suitably big house and making a proper granny annexe. Bills for an annexe are probably similar to a separate home and with a second kitchen you likely face 2 lots of council tax. You can also end up with a weird house that can have a limited market.
We do live in quite a densely built up area though, so lots of choice. If we were more rural it could have gone the other way.
It was probably slightly cheaper than buying a suitably big house and making a proper granny annexe. Bills for an annexe are probably similar to a separate home and with a second kitchen you likely face 2 lots of council tax. You can also end up with a weird house that can have a limited market.
We do live in quite a densely built up area though, so lots of choice. If we were more rural it could have gone the other way.
Aah, ok. So it's effectively 325 cash then 150 for main residence - so £475 in total? I had misunderstood. Yes, mum's still alive but they've been divorced for more than forty years so doubt she'd want to move back in with him!
We're pretty rural, so buying a bigger place would probably be more cost effective than two separate places - we'd likely be in a similar position as we are currently. It's plenty of food for thought. I've a meeting with the accountant so will see who he recommends if he can't advise. Keep them coming in the meantime though!
Thanks
We're pretty rural, so buying a bigger place would probably be more cost effective than two separate places - we'd likely be in a similar position as we are currently. It's plenty of food for thought. I've a meeting with the accountant so will see who he recommends if he can't advise. Keep them coming in the meantime though!
Thanks
skintemma said:
Yes, mum's still alive but they've been divorced for more than forty years so doubt she'd want to move back in with him!
Thanks
My question was more about IHT.... my father predeceased my mother, so my mother's IHT allowance (not quite the right description) became £650,000. Obviously not applicable in your case, but it's why I asked.Thanks
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