Joint mortgage with parent

[Jodesglenn]

Hello, I helped my parents out approximately 20 years ago by getting a joint mortgage with my father to enable him and my mum to buy their house. They are now at an age where they are going to sell it and downsize. Although I am named on the joint mortgage with my dad, I have never contributed to the mortgage as my mum and dad payed it and I have lived in my own house for the last 15 years with my wife and kids. When my dad sells his house, is there a way that I can make sure he and my mum get to keep all of the money once they pay of the remainder of the mortgage as they will be using it to rent a new smaller place etc and keep them for their remaining years. Any help or advice appreciated.

Thanks.

[echat11]

HI JODESGLENN

I can't see the issue, when it's sold the proceeds could be paid to your father. What do you think the issues are or would be?

[jaguarsuk]

You would simply instruct your solicitor doing the conveyancing that all proceeds after the mortgage and their fees have been settled are to be paid to your father. As long as both of you agree this the solicitor will do as you instruct.

Only strange bit for me is why they wouldn't use the proceeds to buy a smaller place potentially allowing them to live without a cost of housing instead of renting which will obviously still be a cost?

[MIKE770]

very strange????????????????? something not right here?

[Jodesglenn]

Hows it very strange? I can assure you that there is nothing 'not right'here.The amount of money after paying outstanding balance would be approximately 60k. Not enough for them to buy somewhere and they have no other savings etc. They would rather rent a small apartment etc. Thanks for the replies. I am going to go and see a solicitor with my father for clarity, but we have no experience of this and this is why I asked the qustion here first. Jaguarsuk and echat11, i appreciate the helpful suggestions.

[islandgirl]

renting brings huge insecurity - something you do not want in old age. Why not carry the mortgage over into a smaller place which they can call their own?

[Jodesglenn]

Thanks for replying. I think that given these comments it is maybe something that I will definately suggest to them and explore as a possibility as they were adamant about renting, maybe even see what me and my brother could do to help if they did buy a smaller property. Thanks.

[islandgirl]

You are welcome. Remember that if they rent the Landlord can issue a S21 notice (no fault eviction notice) meaning they must leave at the end of the rental period (usually 6 months or a year). Although technically they are not obliged to actually go on that date the LL can then go to court and eventually they will be thrown out. This can happen even if they are perfect tenants who pay in full on time all the time. If the LL wishes to sell the flat or house or move back in themselves your parents will be forced out of their home even if they do not wish to leave and are happy there. I think members found it strange that anyone would, by choice, move from owning property to renting. Think also of the issues of paying for care in old age and examine that situation fully if you do continue to own property. Good luck and I hope you find a solution which suits the whole family.

[Jodesglenn]

Really appreciate the advice, Thanks

[jaguarsuk]

Hows it very strange? I can assure you that there is nothing 'not right'here.The amount of money after paying outstanding balance would be approximately 60k. Not enough for them to buy somewhere and they have no other savings etc. They would rather rent a small apartment etc. Thanks for the replies. I am going to go and see a solicitor with my father for clarity, but we have no experience of this and this is why I asked the qustion here first. Jaguarsuk and echat11, i appreciate the helpful suggestions.

Look at a rent to own schemes if you and brother can't help, with a sizable deposit that may still allow them to purchase a property and then it's not the same dead money purely renting would be.

Renting can be a nightmare, at least with ownership they'll have security and not be paying someone else's mortgage, they'll see the benefit.