Rent to buy to son

G

greenfrog13

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My son wants to buy our family home with a rent to buy between us, it's a five-bed house with an annex out the back which I will live anyway

My plan is to remain in the house for the rest of my days . The agreed purchase price is €210k with €50k paid in one lump as a deposit and €1000 per month until it's fully paid.

I have the following questions

I'm on a disability allowance will this affect that

Also how will the €50k and the €1000 per month be treated regards tax and also will the €1000 per month be treated as income or as part
of the purchase of the overall house .

The house will remain in my name until it is paid for in full or I die. There is still a mortgage on the house of €80k

Thanks in advance for any help
 
What is the purpose of the transaction?

It doesn't seem sensible to me.

Your home is ignored for means testing.

If you have cash , it will count as means.

How much is the house really worth? If it's worth more than the selling price, there could be tax consequences.

And if he owns the house, he might try to evict you even if you have a right of residence.

Brendan
 
Don't do it. As I've said in other posts, I've seen too often where a parent lives in an annex and then the people in the main house choose to or have to sell. Parent is out on their ear.

Safeguard yourself and your future. Sell your house outright and buy something smaller if it is too much to manage.
 
Brendan Burgess said:
What is the purpose of the transaction?

It doesn't seem sensible to me.

Your home is ignored for means testing.

If you have cash , it will count as means.

How much is the house really worth? If it's worth more than the selling price, there could be tax consequences.

And if he owns the house, he might try to evict you even if you have a right of residence.

Brendan
Click to expand...
Hi Brendan
Thanks for the reply, The purpose is to help each other out, he needs a home and I don't need a five-bed house.
As he is my only son he would have inherited it eventually but by then he would have bought another house and paid massive interest on a mortgage.
This way he has an interest-free loan and I have a small lump sum and some income as in the €1000 per month, the house is worth €300k
We will have all agreements written up by separate solicitors.
 
Leo said:
So just live in the annex and let him move into the main house. He inherits when the time comes anyway and you don't risk large tax or care bills
Click to expand...

Correct.

And if he gets tired of you , he can't push you out.

And if you get tired of him, you can push him out.

No need for this transaction.

Brendan
 
Leo said:
So just live in the annex and let him move into the main house. He inherits when the time comes anyway and you don't risk large tax or care bills
Click to expand...
The son should pay rent as well, and agree to cover all maintenance costs. That way the OP doesn't have to worry about the house, and gets a boost to their income. No idea how this affects disability allowance. But the government said people on social welfare can now rent out as well tax free and no issue with their social welfare (not sure if it's a relative how that affects it).
 
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