What can my mother do?

EdInvestor

Have you looked into converting the mortgage into a lifetime one via equity release?

That would mean she has the security of lifetime occupancy of the house at no cost - the interest on the loan rolls up and is repaid when she dies or goes into care. She could also take out additional money to pay for repairs.

Of course this will reduce the inheritance for children but there is a guarantee that the mortgage will never amount to more than the value of the property.

https://www.ship-ltd.org.

sleepless_saver

If she has a 4 bedroom house, she could consider renting out a room which would increase her income, though she would have to check for implications for her council tax benefit.

It would be worth working out using entitledto.com whether it is worth her while to work or whether she could make up at least some of the difference in pension credit.

She is likely to find a 4 bed house becomes increasingly difficult to manage because of maintenance and fuel costs, and because of her arthritis, so she may want to think about what she might want 10 or 20 years down the line and plan for that now rather than later. My mother, who is now severely disabled by arthritis, moved into retirement housing 20 years ago when she was 65 and less disabled than she is now. She reckons it was the best decision she ever made. It is cheaper, she was able to get to know people while still active, and it completely avoided worries about how to manage in unsuitable housing later in life. Maybe not the right option for your mother, but the advance planning is a great idea.

daley_lama

One alternate, if possibly emotional, idea would be to look into alternate accomodation for your mother and sell the house, giving her a lump sum.

I'm not talking about packing her off to an old folks home, but, dependant on where you live there is reasonable council or trust run accomodation that is available at a more managable rent rate which wouldn't eat into her savings too much.

It might be worth investigating this purely to see what is or is not possible and available in your area, I again know that certain restrictions on housing availability dependant on savings exist, you might need to do a bit of financial juggling to ensure that your mother is not ineligable through having too much savings.

swerveysgirl

Hi,
I was in a similar position to you 5 years ago - I took out a £81000 mortgage (which I'm still paying and will continue to do as long as my mum needs the house) to buy my mum a house after my dad walked out and left her with nothing. I've had times when I've regretted it as obviously it's left me less comfortable than I could have been. I would say that if you're not sure you can help her financially as long as she might need it, then don't do it, as it would be hard to withdraw the help at a later stage. Renting is a good option as house maintenance might be covered by the landlord which can be expensive. However, If I had to do it again I would still buy her the house, as although it's put a bit of extra financial strain on me, I do feel a lot better that I helped her out and at least she has a home of her own and I was able to give her some feeling of stability.

I don't want to come across as judgemental but your mum is worried that she might have nothing to pass on to her children but yet your siblings won't help/are pressuring you into helping? I find this a little selfish.