living in in-laws house, want to buy them out

[sprat141]

This is a bit of a strange situation, so I'll try and keep this as short as possible...

My in-laws bought their house early 90s in the North East, and shortly after, moved to South East and rented their house out. The tenant caused lots of damage, so my husband and I moved into the house to fix it. We've been living here a year now, paying the in-laws whatever their mortgage is.

Their mortgage is currently interest only with approximately 12 years left. We are aware that they will need to sell the house in order to pay off the mortgage. We would like to stay here, so suggested to them that they change their mortgage to a repayment, and we pay them whatever the mortgage is for the last 12 years, but that means we would have paid off the mortgage, but the house is in their name. We then suggested that we keep the house, but continue to pay whatever their rent is until they die.

We're just after any other suggestions that anyone could have that we haven't thought off that makes us all winners really.

Another alternative is that they change to repayment, and between the four of us, we pay off the mortgage over 6 years (as that is when his father retires), and then we take out a mortgage for half of what their mortgage was to pay them back, but the house would have occurred equity - so what happens there.

My husband and I are recently discharged bankrupts, so we know getting a mortgage right now would be difficult which is why we haven't suggested buying it off them now.

[brian]

I honestly don't see the benefit of paying off a house in someone else's name - in all seriousness, I can see this creating far more potential problems in the future.