Dilemma on Borrowing Family Money.

no it's not something we would do but that's just a personal point of view.

Like Smileless, I wouldn’t. Just be a bit patient……another apartment will come along …..just don’t involve your son in this , however ‘well off’ he is ….

Just a thought, but won’t you have to pay capital gains tax if you move your primary residence from your existing home to an apartment?

Personally I wouldn’t do it, why not sell your home and rent until a property you loves pops up and you will be a cash buyer.

No I wouldn’t do it. You do have a while to sell your existing home after buying a new one (used to be a year but I believe it’s changed) but for stamp duty purposes you will be buying a second home so will pay more duty though you can reclaim the excess if you sell your old home within I believe three years. These things do change though and of course you will be paying outgoings on two properties.
But I really wouldn’t want to put my son in this position and use him in this way. I think it’s unfair no matter how well he’s doing.

No, sell and then buy.

There is no right or wrong answer

It depends on your relationship with him and the family dynamics

Another point to take into account is how easy it would be to have the money transferred from Australia to UK - what the financial implications?

Most people manage to do it the usual way.

Everybody is saying no, they wouldn’t do it.

What if the boot were on the other foot, and DS were asking mum and dad to lend him the money to buy a property, to be repaid when he sells?

I bet many of you would say yes, if you could afford it and it would help him move.

No, I wouldn’t ask. If he offered when you were talking about it then that is different. I would be patient and sell first. From my own experiences, money and family don’t mix well. Good luck.

Given how much financial and other help so many adult children expect from the Bank of Mum and Dad, I don’t see a problem about asking your comfortably off son for a short term loan. He can easily say no.

I'm with QuoteOopsadaisy1 - why not sell first and rent while looking, you will then be a cash buyer and in a very good position.

sorry Oopsadaisy1

We have all seen house prices sky rocket and the come tumbling down and be hard to sell.
This is a likely scenario in the UK right now..

This is good enough reason not to borrow money to buy.

Not to mention the costs of money transfers.
Exchange rate fluctuations
Could draw attention to both sets of finances by the authorities.
Presumably we are talking in excess of £100k here, not many people have access to that kind of cash, it’s usually tied up somewhere.
He might have a partner who would also need to be involved in the decision.

Transferring the money costs a huge whack in ‘transfer’ fees, my son and dil had this issue when they moved abroad. Would would be covering those costs in the loan too?
If your son suddenly becAme
Personally I wouldn’t ask, your son will feel obligated whether or not he can afford or inconveniences him. I think unless it was desperate and without his aid you would be homeless/without accommodation I personally wouldn’t ask. But then neither of my sons are well off so I wouldn’t know.

For the record, i would not personally ask

Thank you for all your different answers/opinions to my question.
It is a stressful time in itself downsizing.
I feel Calendergirl and silverlinibg48 are on my wave length. It is a big ask .... so maybe I’ll not do it.
To rent is a good idea but how long before we find anything suitable will it have eaten into your cash.
Hey ho!

My Dad needed to relocate and a suitable property was available.
A family member offered to lend the money required.
When Dad's house was sold soon after, the money was repaid.
No problems.

No from me I wouldn’t ask anyone, friend or relative, it can go so wrong I have never in all my life borrowed money off anyone except the bank for my mortgage I prefer not ‘to have’ than be in debt to anyone
That’s just me

It depends on your relationship with your S.
My friend did this although the offer was made by the S.
She looked at a retirement apartment with her S and loved it ,he immediately said to her to put a deposit down as they were selling quickly.
She put her own, beautiful, bungalow on the market, her S paid the balance of the apartment and she was in in less than six weeks.
Her bungalow sold quickly and she repaid him.
They have a very close relationship and both her S’s do everything for her.

humptydumpty

I'm with QuoteOopsadaisy1 - why not sell first and rent while looking, you will then be a cash buyer and in a very good position.

My thoughts too!

We lent my parents funds to buy a bungalow before the family home sold. They were old and frail and moved very near us. The family home sold a few months later and we were repaid. No problem. We offered and were not asked.

We once helped out a family member in financial difficulties. They paid us back very promptly.
What was not anticipated by them was that by us breaking the fixed rate agreement we had with our bank we suffered penalties and when the money was returned we could not lock in again at the same rate of interest.
My husband never mentioned it to the borrowers because they were about to lose their home but it left a bad taste in our mouths that our kindness cost us, not them.