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Hi
im new on this site, and have a complex issue... Please bear with me whilst I try to explain the basics...
in May 2004, my father in law bought a property for £125,000. My husband and I moved into the property, on the understanding that we would purchase this from him for £125,000 once our current property has sold.
Fast foward 13 years...
we we didn't sell our other property. My father in law wanted us to rent it out, and he would collect the rent as 'interest' on his investment of £125,000. He has received around £62,000 in rental income (none of which he has paid tax on!).
we have continued to live in 'his' property - with the understanding that we owe him £125,000. My worry is that none of this is legal - nothing has been written down. We have spent a lot of our money altering the house, and it is probably worth in excess of £200,000.
We we need to get some advice of what we need to do - my father in law in nearly 80 and I'm worried that I am going to loose our home if anything happens to him. He still doesn't want us to sell the property we rent out, as he wants the rent.
My my husband and I are not in a position to get a remortgage currently - my husband has just become self employed.
We have around £90,000 equity in the home we rent out.
We we are thinking that we should just sell the rental property and buy the house we live in, however can we buy this for £125,000 which is considerably less than its market value now? As I said, we have spent lots of money on this house, and I am worried that we aren't going to see a return on our investment!
I feel really helpless and in a messy situation! It's causing me so much stress!
Any help or advice on what we should do would be greatly appreciated.
im new on this site, and have a complex issue... Please bear with me whilst I try to explain the basics...
in May 2004, my father in law bought a property for £125,000. My husband and I moved into the property, on the understanding that we would purchase this from him for £125,000 once our current property has sold.
Fast foward 13 years...
we we didn't sell our other property. My father in law wanted us to rent it out, and he would collect the rent as 'interest' on his investment of £125,000. He has received around £62,000 in rental income (none of which he has paid tax on!).
we have continued to live in 'his' property - with the understanding that we owe him £125,000. My worry is that none of this is legal - nothing has been written down. We have spent a lot of our money altering the house, and it is probably worth in excess of £200,000.
We we need to get some advice of what we need to do - my father in law in nearly 80 and I'm worried that I am going to loose our home if anything happens to him. He still doesn't want us to sell the property we rent out, as he wants the rent.
My my husband and I are not in a position to get a remortgage currently - my husband has just become self employed.
We have around £90,000 equity in the home we rent out.
We we are thinking that we should just sell the rental property and buy the house we live in, however can we buy this for £125,000 which is considerably less than its market value now? As I said, we have spent lots of money on this house, and I am worried that we aren't going to see a return on our investment!
I feel really helpless and in a messy situation! It's causing me so much stress!
Any help or advice on what we should do would be greatly appreciated.
