Parents split - buying my mother's half of the family home

[stuartmc]

I'd appreciate some help working through the various issues here... it occurred to me in the last couple of days that I could buy Mam's stake in my parent's home. They split recently, Mam moved out to a rented house, and they need to decide what to do with it. The option Dad is leaning towards is selling the house, giving Mam her half, and renting himself too.

If I were to buy Mam's half, that would save Dad from either remortgaging to buy her out or selling and renting somewhere himself. It would be a nest egg/pension for me - assuming a bank would give me the loan - as I would get the house when he dies, rather than split it 3 ways with my sisters. He's 48, so hopefully it won't be anytime soon.

How would the loan work out - would it need to be a joint loan fro Dad and I - or just a loan for me? I just bought my first house with my girlfriend - would that have any relevance? How would this affect our trading up in a couple of years?

Also, can you recommend a good, independent, financial advisor?

Thanks in advance for your opinions and help.

 

[Sarah W]

Whether you can buy your Mam out will come down to affordability - your income, your Dad's income and your commitments (existing mortgage and any other loans). You and your Dad would need to get a joint mortgage which would be classed as an investment mortgage for you although most lenders will offer homeloan rates.

You'd also need to discuss the inheritance issues with your Dad and your sisters to avoid potential problems in the future.

Sarah

www.rea.ie