Is it a good idea to buy Father-in law's house?

C

cutexzy

Guest
Dear All,
We bought our first apartment in dublin 2 years ago,about 320K(2 beds),just before falling. My husband lost job after,now he is a student.I have a full time job in dublin, 31K. The only lucky thing for us, we have the track mortgage, following ECB rate. Anyway, it is up now for 0.25.
We are doing OK, good time, bad time, and still be able to build up saving about 90K.
My father-in law lived in a council house down Wicklow more than 20years, never had chance or money to buy it. We are going down to visit him regularly. We will do everything could to look after him.
Recently the council send him a letter, offered the last chance to buy the family house, by 45% off the market value.
We guess the house would not worth more than 100K market value. So we could get it under 55K, but of cause under my father-in law's name.
We would like to help Dad to buy this family house in cash, and he could have security,no rent fee anymore.
But we have some questions about ownership part. Dad would like to put the house under my husband's name, because we actually bought it.
1.We don't know if it is possible. 2.My husband has a older brother lived in UK, already said he does not want to do anything related to this house.But of cause,everything could possibly be changed in future, especially money talking.We don't want to end up a bad family relationship.3.How about tax part for us?
Money is one thing, but if we started in good willing to help family, ended up losing family. We may be better off not doing it now.
We will surely talk to a solicitor first, but any advice would be appreciated.
Thank you very much,
 
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I'd love to hear what the advice is. My Mum approached us recently with a similar offer. She can't get a mortgage herself either.
 
I bought my parents council house in 2008. They were able to avail of the tenants price reduction due to the length of time they had lived there. All three of our names are on the mortgage, even though I am the only one paying. I live in Dublin and the house is in Kerry, so I had to say I was living in Dublin for monetary reasons only (this was something the council asked for, pretty much true too as I will move home eventually in years to come) and also that it would be my parents' permanent home until they pass away and the mortgage will then just pass in to my name only.

I'm not sure though as to tax implications for your husband buying with his father, as your husband is not a first time buyer. When my parents and I bought our house, we were all first time buyers so no stamp duty applied.

I hope this info helps you in some way.
 
Yeah, I wonder would they let you buy it if you already had your own house?
 
I processed many mortgages like this over the years, normally the mortgage would be in the joint names of the person entitled to buy the house and the person who had the income. The deeds would just be in the tenants name and the council were happy. Not sure if it is possible any more to get mortgages like this anymore due to tighter restrictions as obviously your own mortgage payments would be taken into account when the lender is underwriting the loan. Also important to be sure house is in good condition as council will no longer be liable for any repairs and you could end up with more expense.

What happens the house on the death of the tenant could be more complicated, a system better suited to only children!
 
Thank you all very much! I will check with our solicitor later and let you know what's going on.
 
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