How do I help my grandparents?

Tiny_Tali

I currently live with my grandparents and see myself staying for the forseeable(sp?) future. My Grandfather just turned 80 this week and only retired 2 months ago (he was a back cab driver). Since he retired I have been giving them £50 a week to help cover food and bills. Thing is they are thinking of the Equity release thingy.
Obviously I dont want them to do this at all. I want to buy the house off them but doubt I will ever get the mortgage as i'm only an apprentice not earning much. I tend to get silly plans in my head like this...get a mortgage to buy the house, they live rent free, I convert the loft so i can have that as like my own space, they will have money and I will have a foot on the property ladder.
Would this be viable? or would inhertance tax catch up eventually. and in this current "credit crunch" would I ever get a mortgage?

chesky369

There are several different issues here
*

chesky369

Don't know how that happened.

The issues :
How much do they expect to raise if they did the equity release and what would it mean in terms of weekly/monthly income?
Are they eligible for benefits to assist them at present if they're having a bad time financially?
Do they realise you are interested in the possibility of having the house?

Savvy_Sue

If they are thinking of the Equity Release scheme because they are struggling, then the first thing might be for you to pay a realistic amount towards food and bills ...

I don't know how easy your grandparents would find to sit down and talk to you about money: if they still see you as their little boy/girl and / or they're fiercely private and independent in such matters, then it would not be an easy conversation. Plus there's a danger of you coming across as only being interested in getting your hands on the house - I'm not for a moment suggesting that is the case, just saying it would be an easy thing to happen.

But if you knew you were paying 1/3 of bills, then you could start thinking about what that leaves over for mortgage payments / conversion plans. My guess is 'not a lot'!

How much longer does your apprenticeship last?

Tiny_Tali

Savvy_Sue wrote: »

If they are thinking of the Equity Release scheme because they are struggling, then the first thing might be for you to pay a realistic amount towards food and bills ...

They wont take any more off me! i've tryed and they just say no. And i've already suggested buying the house off them but they laughed it off.
My uncle helps them by paying the phone and internet bill. I know the money I give goes on food and other house stuff. my grandad sorts the other bills and wont let me even look at them!

I'm just anxious(sp?) that they will be ripped off by this equity release thing. they already had one person around to value the house. My conversion plan was just an idea that I know wont happen for a very long time.
as for benifits for them, I havent a clue where to start.

oh my apprenticeship is for another 2 years.

chesky369

What about discussing it with other members of the family, like your uncle?

chesky369

And, as for benefits, first ask them if they mind you getting involved and if they're OK about it, go to your local citizens' advice bureau who will do a benefits check for them.

Edinburghlass_2

You need to get them to have a look at the Pension Credits website here...

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/On_a_low_income/DG_10018692?cids=Google_PPC&cre=Money

Even if they are only eligible for a small amount of money in Pension Credits this can trigger other benefits such a council tax reduction. Get your uncle to show them Martin's article here regarding what benefits they may be entitled to.

http://www.moneysavingexpert.com/protect/benefits-check

Savvy_Sue

Tiny_Tali wrote: »

They wont take any more off me! i've tryed and they just say no.

In that case, live sensibly and save like fury! See if they will let you treat them occasionally, flowers for grandma and so on, but show that you've got a good money head on you and that you are a young man (?) not their little boy.

Although you will always be their baby ... :rotfl:

ukmaggie45

Tiny Tali, if your grandpa is over 80 and has just retired I'm sure there may be Benefits he can claim...

But it sounds to me as if he may be too proud to claim them? He has paid over his life into National Insurance, so he is ENTITLED.

I do hope that your Grandad is fit and healthy, but if he is getting frail in any way, he might be eligible for Attendance Allowance. I think you can find more information about this on the Help the Aged and Age Concern websites. Sorry, am not up to making links to those websites just now, but should be easy to find from a search.