Hello everyone,
First of all, thank you very much for your help. I need advice on the following situation.
My wife’s grandmother (single) and her father (single) each own a fully paid-off house on adjacent plots of land. Now my father-in-law has offered us to move into his mother’s house and to let us use his house free of charge. However, he wants to remain the owner, just as his mother will remain the owner of her house.
The house we would move into needs significant renovation or possibly even refurbishment, and I am estimating costs of around 150,000-200,000 (USD). What would you say, are there options in such a case?
(The reason that both houses are to remain owned by the grandmother and the father respectively is that they serve as their retirement provision.)
Many thanks and best regards,
bernds91
First of all, thank you very much for your help. I need advice on the following situation.
My wife’s grandmother (single) and her father (single) each own a fully paid-off house on adjacent plots of land. Now my father-in-law has offered us to move into his mother’s house and to let us use his house free of charge. However, he wants to remain the owner, just as his mother will remain the owner of her house.
The house we would move into needs significant renovation or possibly even refurbishment, and I am estimating costs of around 150,000-200,000 (USD). What would you say, are there options in such a case?
(The reason that both houses are to remain owned by the grandmother and the father respectively is that they serve as their retirement provision.)
Many thanks and best regards,
bernds91
W
WilderSueden1 Apr 2022 21:53If you are making a major investment in a house, you should have a fair share registered in the land registry. There is no other way to protect your money. We are no longer talking about just painting three rooms. Besides, a bank will only grant a necessary loan to the owner.
If there is sufficient equity available, I could imagine the following arrangement:
You provide the father-in-law with a loan for the refurbishment/renovation.
The father-in-law repays the loan through reduced or rent-free occupancy (you offset rent against loan repayment).
Investing your own money directly into a third party’s property is a no-go!
You provide the father-in-law with a loan for the refurbishment/renovation.
The father-in-law repays the loan through reduced or rent-free occupancy (you offset rent against loan repayment).
Investing your own money directly into a third party’s property is a no-go!
H
henning1811 Apr 2022 23:15Good evening,
The best option would be for your father-in-law to transfer the house to his daughter as an early inheritance and simultaneously register a life estate (usufruct) for himself. An investment without registration in the land registry would not be advisable and is certainly not in your father-in-law’s interest.
Because if it is about securing his retirement, you would always have to expect that it might be sold first, and I don’t think that’s what you want.
The best option would be for your father-in-law to transfer the house to his daughter as an early inheritance and simultaneously register a life estate (usufruct) for himself. An investment without registration in the land registry would not be advisable and is certainly not in your father-in-law’s interest.
Because if it is about securing his retirement, you would always have to expect that it might be sold first, and I don’t think that’s what you want.