Can i buy my dad's house?

[islandjj]

My dad has paid off his mortgage on his house which has been roughly estimated at around £300,000. My husband and i are keen to own the house when my father passes away. My father is keen for us to buy the house by paying him money each month so that we would own more than the 1/3 he would leave me in inheritance. The other 2/3 would be split between my brother and sister. It would be a good way for us to get on the propety ladder and a chance to be able to own a house we would never otherwise afford to own.

Does anyone know if this is possible or how this would work? We do plan to go and see a solicitor about this but i was just wondering if anyone has done this themselves?

[New Judge]

I see a number of pitfalls:

Assuming you do pay your Dad enough to purchase your third (say £100,000) before he passes on, how do you propose to then buy out your brother and sister when they inherit the other two thirds? You will need about £200,000 (at today’s prices) to remain in the house, otherwise it will have to be sold and the proceeds split three ways.

To pay your father £100,000 in (say) ten years you will have to pay him £200 per week.

He may encounter tax problems on this additional income of £10k per annum.

There are a number of other problems which I think would be best addressed in your visit to a solicitor.

[hc4361]

What would happen if your father needed to go in to full time nursing care, and the costs had to come from the sale of the house?

[New Judge]

Yes, one of the (many) other problems.

This idea is fraught with problems and you should really take expert advice before embarking upon it.

[craft1948]

I think you'd be better off saving your money for a total buyout. My brother-in-law and his brothers received a third each, but his father stipulated in his will that one of them should have first dibs at buying out the other two, if he wished to do so.

[cassa333]

Surely if islandjj paid her father £100k she would own a third and the other two thirds would be split between her and her brother and sister. Giving her a £166k share and her siblings £66k each. She would only need to find £134k instead of £200k but would in theory get 1/3 of £100k back as part of her inheritance bringing her cost to purchase the rest to about £100k.

I may have in all likelyhood got this totaly wrong.