Hire purchase: Everything about living and buying from parents

Questioner

My parents want to rent me a house where I have the option to buy the house at any time at the current appraisal value, whereby the rent already paid (minus interest) will be settled as part of the purchase price. Is this possible? If so, is this done more often and how can this be arranged?

Lawyer

These kinds of agreements are made more often. It is important to record this properly in writing. If desired, I can help you with this.

Lawyer

That is simply hire purchase. Please note that the bank must give prior permission for renting and encumbering the owner-occupied property.

Questioner

Thanks for your responses. I am currently unable to buy a home myself and my parents are willing to help, but donating is not the intention. That is why we were thinking in this direction. Are there things we need to take into account that are different with hire purchase compared to regular rent? For example, can we determine the interest rate and the rent amount ourselves? Is rent allowance possible?