Another property/inheritance query...
Discussion
Hello all...
I have no expertise in any of this and at the moment I don’t believe what we would like to happen is possible without it being very messy with potential for huge fees all round. However, I’m trying to wrap my head round it anyway, just in case. If anyone has any advice I would appreciate it.
My in-law’s have expressed an interest in moving into a smaller property at some point. A house very close to them will be coming up for sale soon (probate) and seems to fit the bill. They are both retired, and aged 70. They have also suggested it would be their wish, if possible, for their current place to stay in the family. While it is a beautiful house and one that would become our forever home, I believe the price is beyond the reach of my wife and I, or her sister, at around £700-750k by my estimate. (Our combined salary is about £90k, but our philosophy has so far been to pay down the mortgage as quickly as we can, not get loaded up with more.) The smaller house is likely to be valued at about £400k and our own property is probably worth £325-350k, with about £150k mortgage left to pay.
Essentially my thinking so far involves some kind of inheritance tie-up. They gift us the house, we sell ours and buy the one that’s coming up for sale and then somehow they live in the smaller house and we maintain mortgage payments on it. My wife’s sister would receive her share of inheritance from the smaller house, based on its value relative to the larger one, so she would always be due the same amount, balanced with anything we've paid over and above.
My one major obvious concern is that should it come to it and they need professional care that we simply cannot provide between us, and they need to go the residential care route, having the whole value of the more expensive property to deplete for this purpose is surely safer. (Although I believe they have a trust arrangement to limit their exposure to this expense.)
The whole thing seems bonkers to me but there you go. I think the more likely situation is the house is sold as normal, which unfortunately will mean the garden will be very likely built on... something they have turned down many offers for in the past.
If anyone can see an obvious sensible route to take to achieve what they desire I’m all ears.
Thanks for reading!
I have no expertise in any of this and at the moment I don’t believe what we would like to happen is possible without it being very messy with potential for huge fees all round. However, I’m trying to wrap my head round it anyway, just in case. If anyone has any advice I would appreciate it.
My in-law’s have expressed an interest in moving into a smaller property at some point. A house very close to them will be coming up for sale soon (probate) and seems to fit the bill. They are both retired, and aged 70. They have also suggested it would be their wish, if possible, for their current place to stay in the family. While it is a beautiful house and one that would become our forever home, I believe the price is beyond the reach of my wife and I, or her sister, at around £700-750k by my estimate. (Our combined salary is about £90k, but our philosophy has so far been to pay down the mortgage as quickly as we can, not get loaded up with more.) The smaller house is likely to be valued at about £400k and our own property is probably worth £325-350k, with about £150k mortgage left to pay.
Essentially my thinking so far involves some kind of inheritance tie-up. They gift us the house, we sell ours and buy the one that’s coming up for sale and then somehow they live in the smaller house and we maintain mortgage payments on it. My wife’s sister would receive her share of inheritance from the smaller house, based on its value relative to the larger one, so she would always be due the same amount, balanced with anything we've paid over and above.
My one major obvious concern is that should it come to it and they need professional care that we simply cannot provide between us, and they need to go the residential care route, having the whole value of the more expensive property to deplete for this purpose is surely safer. (Although I believe they have a trust arrangement to limit their exposure to this expense.)
The whole thing seems bonkers to me but there you go. I think the more likely situation is the house is sold as normal, which unfortunately will mean the garden will be very likely built on... something they have turned down many offers for in the past.
If anyone can see an obvious sensible route to take to achieve what they desire I’m all ears.
Thanks for reading!
This is a very complicated situation. I’d need to understand reference you make to the trust set up to reduce exposure to future care costs.
One potential show stopper is getting a mortgage for the smaller house and having your in laws live there. Mortgage terms normally prohibit someone else living in the property that isn’t you. You can get a BTL mortgage for the smaller house but there are restrictions in letting to family so you would need a specialist product- they do exist.
One potential show stopper is getting a mortgage for the smaller house and having your in laws live there. Mortgage terms normally prohibit someone else living in the property that isn’t you. You can get a BTL mortgage for the smaller house but there are restrictions in letting to family so you would need a specialist product- they do exist.
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