As a caregiver for your parent(s), it's convenient to live nearby. Whether it's bringing groceries, a pleasant visit, or helping with daily care. It's also reassuring to know you can be there quickly if something happens. That's why more and more people are choosing to have a parent move in with them, or buying a care home attached to their house. In this article, you'll read everything about the different possibilities for living together with your parent(s).
Option 1: Having your parent(s) move into your home
The first option to live closer to your parent(s) is to have them move into your home. If you have sufficient space, this can be an excellent option. However, there are several things you need to know before taking your father or mother into your home. There are financial and legal consequences attached to this, even if you keep the two households separate. After all, you'll all be living at the same address.
Can you just take your care-dependent parent(s) into your home?
Whether you can have your parents move in with you depends on various factors. Consider whether renovations are needed for your parents to move in, and whether your parents will or will not become co-owners of the house. Living together with your parents can also have consequences for taxes, allowances, and benefits.
Do renovations need to be done?
You'll probably need to renovate things in the house so your parents have their own space. Think of an extra kitchen or an extra bathroom. You need to get permission from the municipality for these types of changes to your home. So contact the municipality; they'll check whether the modifications align with zoning plans and the rules from the housing ordinance.
In some cases, permission from the mortgage provider is also needed for major renovations, especially if they could significantly change the value of the home.
If you live in a rental property, you must always ask permission from your landlord before starting any renovation. This especially applies to structural changes, such as installing an extra bathroom or building an extension.
Will your parents not become co-owners?
If your parents don't become co-owners of the home, then your mortgage simply continues in the same way. However, the mortgage provider must give permission for your parents to move in. If you take your parents into your home via a rental construction, then the mortgage provider must give permission for this.
If you form one household together, then you can continue to deduct the mortgage interest on your entire home for tax purposes just as you did before. But be careful: if your parents have their own living space that can only be used by them, then this part of the house is no longer seen as your 'own home'. You may no longer deduct mortgage interest for that part of the home.
Will your parents become co-owners?
If your parents become co-owners of the home, then you need to determine what share they can buy into. Also decide together what price tag is attached to it. Perhaps your parents can pay this amount from the equity of their old home. But it could also be that they need to take out a new mortgage.
You can contact your mortgage provider to see if it's possible to take out an additional mortgage. But your parents can also take out a mortgage with another mortgage provider. What's most sensible depends on the specific circumstances. In a mortgage consultation, a mortgage advisor can help you further.
Good to know: mortgage providers usually want all owners (so yourself and your parents) to be jointly liable for the entire mortgage debt. A mortgage advisor can inform you further about everything that changes on the mortgage when taking your parents into your home.
Tip: it's more favorable if the mortgage debt after your parents' buy-in is not higher than the mortgage debt before the buy-in. If the new debt is higher than the original debt, then the interest on the extra amount is not deductible. A mortgage advisor can inform you further about this.
Go to the notary for the ownership transfer and recording of agreements
To make your parents co-owners, you need to visit the notary. If your parent(s) are not physically able to do this, you can arrange the buy-in via a power of attorney. The notary handles the deed of transfer, which states what part of the home becomes the property of your parents. Additionally, agreements are recorded about other matters.
For example, you can have it recorded what happens if one of the owners wants to sell the home or wants to move. But also what happens if someone can no longer make their own decisions (for example due to dementia) or dies. To be prepared for these matters, it's useful to draw up a will or a living will.
Also make clear agreements about the division of housing costs, so that no trouble can arise about this later. Also record how the equity will be divided if the home is sold in the future or your parent(s) move, for example to a care home. A cohabitation contract is a useful document for this. You can also have this drawn up by the notary.
Option 2: Buying a care home or kangaroo home attached to your house for your parent(s)
Don't want to live together completely with your parents, but are you looking for a way to live on the same property? Then research the possibility of a care home or a kangaroo home. The nice thing is that your parent(s) don't have to go to a care facility this way. They can continue to live independently, with help from family nearby, in a smaller home.
What is a kangaroo home?
The kangaroo home is a housing form where your parent(s) live in their own housing unit, attached to your home. The home is accessible via a lockable connecting door. You both have your own privacy this way, but are also quickly with each other.
Converting your current home
If you want to convert your home into a kangaroo home, this must first be possible. A kangaroo home has, for example, 2 independent living spaces each with their own bathroom and kitchen. You need to have the space for this, and you need to get permission from the municipality to divide the home.
In many municipalities, you also need to apply for various permits. Ask about this at your municipality. Also be aware that converting your home affects the value of your house. If your parent moves to a care facility or dies, you can usually buy back the other part if you own the larger home. The value of your home then rises again.
Get well informed and advised by a professional if you're thinking about this construction.
Buying an existing kangaroo home
Is it not possible to convert your home into a kangaroo home? Then you can look for an existing kangaroo home. That can be difficult though, because there are few of these homes on the market. If you have a suitable home in mind, always check the zoning plans before moving there with the whole family.
The Land Registry marks the kangaroo home as one home. This means you can only take out one mortgage for the financing.
Renting a kangaroo home
It's also possible to rent a kangaroo home. There are few kangaroo homes to be found on the rental market, but there is increasingly more demand for them. Be aware that you usually have to move if your care-dependent parent moves to a care facility or dies. You then have to look for a new home yourself, so that another family with care-dependent parents can move in.
What is a caregiver's home?
Unlike a kangaroo house, a caregiver's home is not attached to the main house. A caregiver's home stands, for example, as a separate house in the garden. You can convert a garage or a garden house into a full caregiver's home for your parent(s). But there are also ready-made caregiver's homes that you can have placed on your property.
The rules and permits for caregiver's homes
You cannot just place a caregiver's home on your property. Contact the municipality to see if you need permits and what the rules are. Whether a permit is needed depends, among other things, on the surface area of your plot and the size of the caregiver's home.
Don't forget to get well informed about this, because placing a caregiver's home can have major financial implications. For instance, it is useful to know what the rules are if your parent has left the caregiver's home. You can then no longer use the caregiver's home as a dwelling destination. The house may remain, but you will have to remove the bathroom and kitchen.
If you don't, it can affect the WOZ value of your property. During the period that your parents are in the caregiver's home, the cottage has no influence on the WOZ value.
Note: Before you can place a caregiver's home on your property, you must first ask permission from your mortgage provider.
The financing of a caregiver's home
A caregiver's home is not attached to your current house, so you can't finance it with your current mortgage. If you cannot pay for the house with savings or from a possible surplus of the sold house of your parent(s), it may be possible to take out a personal loan. Discuss your options with a financial advisor and choose the best option together.
Good to know: the money you put in for the purchase of the caregiver's home is not tax deductible. If you take out a mortgage for it, you cannot deduct the interest. On the other hand, the caregiver's home also does not count for your WOZ value, as long as your parent(s) live there.
Buying a new home with space for a caregiver's home?
Do you want to buy a new home, in which you can place a caregiver's home for your parent(s)? Because a lot is involved, we recommend engaging the right professionals. Consult with a financial advisor and hire a professional real estate agent with expertise in caregiver's homes.
Through Krib (previously Mijn Verkoopmakelaar) you can quickly find the best real estate agents for selling the old property(s) and buying a suitable home with room for home care. Sign up for free with us and compare the best real estate agents in your area based on costs, ratings, and expertise. It is also possible to make a free appointment with a mortgage advisor.
- Safe
- No obligation
- Free
- Independent
Do you have questions about our service? Get in touch with us!
Tip: Mention in your registration that you are looking for a Real estate agent with expertise in homes for caregiving. This way, you will only come into contact with the right Real estate agents.
Option 3: Buying a new home with your parents
If you would like to bring your parent(s) to live with you, but your current home is not suitable, you could consider buying a new home with your parent(s). It is important to involve the right professionals if you plan to do this, as there are a lot of rules involved and the new situation will have tax implications.
So definitely have a conversation with a financial advisor. And engage a real estate agent and a mortgage advisor with the right expertise. Also contact your local municipality to find out what the rules are for this type of living arrangement. Below we discuss what you can roughly expect and what you need to consider when buying a house with your parents.
Concluding a mortgage based on more than 2 incomes
Where you normally deal with a maximum of 2 incomes for financing a house, you now suddenly have to deal with a new situation. Your parents also have assets, plus their own income. Not all mortgage providers provide mortgages based on more than 2 incomes. A mortgage advisor can help you find the right banks.
Through a conversation with a mortgage advisor, you can quickly start looking for financing options.
We help you quickly and easily find the right professionals for buying your new house and selling your old house. Find the best Real estate agents at competitive rates, and schedule an appointment with a mortgage advisor.
- Receive proposals from multiple Real estate agents
- Get clarity on the costs and method beforehand
- Choose based on performance and results
- Over 3000 people have preceded you
- Also schedule a free appointment with a mortgage advisor
- Free & without obligation
- Safe
- No obligation
- Free
- Independent
Do you have questions about our service? Contact us!
Tip: Mention when you sign up that you are looking for a Real estate agent with expertise in the field of multi-generational living. In this way, you only come into contact with the right Real estate agents.
Include the correct suspensive conditions in the purchase contract
Do you have a property in mind? It's important to include the correct suspensive conditions in the purchase contract. Consider a longer period for arranging the financing. In your case, arranging the mortgage will probably take more time. Include a minimum period of 8 weeks in the purchase contract to get the financing done.
Also include a suspensive condition in the purchase contract for obtaining the necessary permits to buy and live together with your parents. Indicate that it concerns 'irrevocable' permits. In other words, permits against which no objection can be made and against which no appeal can be made.
Have a legal professional review the suspensive conditions to ensure they are correctly formulated.
What all do you need to arrange at the notary?
If you want to buy a house with your parent(s), this obviously goes through the notary. There you sign the deed of delivery and the (if applicable) the mortgage deed. In addition, it is useful to record a number of agreements at the notary. After all, you never know what will happen in the future.
So you can record agreements about what to do if:
- One of the owners wants to sell the house.
- One of the owners wants to move.
- One of the owners is no longer capable of making decisions themselves (for example due to dementia). For this you can have a living will set up.
- One of the owners passes away. For this you can have a will set up.
If your parent is not mobile enough to come to the notary, he or she can sign by proxy.
Learn more about buying a house
Frequently asked questions about living with your parents for caregiving
Are you fiscal partners or not?
Whether the tax authorities see you as fiscal partners depends on the way you live together. Are you not registered at the same address because you both have your own house number? Then you are not considered as fiscal partners.
If you are registered at the same address, then you are considered as fiscal partners. This means that your joint income and wealth are taken into account when determining the right to benefits and allowances. This can have an impact on allowances, such as rent allowance, health care allowance, and the child-related budget.
The cohabitation of parents with a child does not affect an AOW pension, but it can affect the right to other benefits, such as a welfare benefit. On the other hand, cohabiting grandparents with an adult grandchild does have consequences for the AOW pension.
Is it possible to split the purchase property?
Yes, under certain conditions it is possible to split the ownership of a property. The possibility depends on various local rules and zoning plans. Therefore, contact a professional and the municipality for appropriate advice. You often also need to apply for permits for the splitting and renovation of the house. An additional house number must also be requested from the municipality.
If the local regulations allow this, you can therefore split the ownership. You will then each become the owner of your own part. As an owner, you can decide what you want to do with your property. For example, you can sell or rent out your property separately.
Does living together with parents affect insurance?
Living together with your parents can affect the coverage of your insurances. That's why we recommend you to get in touch with your insurer(s).