Mortgage for older person

Pitlanepiglet

I know the short answer is I need proper advice but I'd be grateful for views on our situation.

My Dad is 74 and has a house that he doesn't want to leave but he has a small mortgage (£20k) that he won't be able to repay next year.

We want to move closer to him so are planning for me to buy half his property (£150k mortgage needed) and we'll build him a granny flat on the side (we have planning consent). This puts us all together and enables him to stay on his site etc. and he'll kick back some money to me and to my sister from the money that he gets. I have sufficient income to cover the mortgage.

Sooo...I understand that we will need to take a joint mortgage as we'll jointly own the house? I got advice last year on this and was told that his wasn't a problem, I'm now getting a bit twitchy about whether we'll find a lender given that their appears to be much less money in the mortgage system.

Does anyone have any words of wisdom for me as I'm starting to panic!

(oh we also have to factor in that his bungalow is a Woolaway so it's pre-cast concrete!)

Qual123

i think you would be better off buying the property and having your Dad as a lodger, some Lenders will allow people up to 100 years old and over!! but you will really limit your options.

You can get a deed of trust written up to show his interest in the property.

Pitlanepiglet

Thanks Qual123, that is an option but I think I'd struggle to raise the total purchase price initially, it would be over six times my salary. Plus my Dad is a bit twitchy about disadvantaging my sister in the long term (as I am), although my sister is very relaxed and pleased that Dad will have us on hand as she lives overseas.

Oh dear, nothing is ever simple is it!

dunstonh

Could he utilise equity release?

Pitlanepiglet

It's not something I know much about, other than the old days of STAY AWAY!

We need to raise enough money to be able to build the extension plus he needs to pay his mortgage and wants to have some money in "his pocket" so he can continue to travel.

I suppose it's an option, could I then repay it by buying the house from him in the future?

margaretclare

For equity release, look at the SHIP website: https://www.ship-ltd.org

HTH

dunstonh

Its very differnt to the old days. Things have moved on and it is a viable option now. Although it is over marketed by the providers who do make good money out of it.

toonfish

equity release may be very viable but the biggest problem is likely to be the woolaway construction, rather than the lending. Halifax will do a lifetime interest only mortgage where he can pay the monthly repayments as an alternative to equity release.

Pitlanepiglet

Are the Halifax happy to lend on a Woolaway? His current lender is the C&G so I suppose they should be our first port of call? I can't see their maximum lending age on their website?

I guess we do come back to the sensible solution is for him to gift the bungalow and my sister and I to raise a mortgage? That will presumably be complicated by her mainland Europe resi status (hasn't lived in England for 27 years ) but she does have a UK bank account (although she is self employed and has no real income)

I'm soooo confused!