Can you give away your house?

margaretclare

Equity release might have been the first option to think of rather than giving his house away. If he gives it away it's still going to need the refurbishment, modernisation and repairs that the OP mentions.

His first stop should be the SHIP website: https://www.ship-ltd.org

TEDDYRUKSPIN

Equity release will be pointless in this scenario. Does'nt his Grandfather want to pass the whole house to his Grandson? Ownership of a equity release scheme will be owned by the company unless the loan can be paid off in full.

I believe this section has gone way out of control. Too much ideas for a person who will now have a big headache.

Unfortunately with limited information on what your Grandfather has actually done, everyone here will be assuming! We should all understand what !!!.U.ME, means!

Anyway, seek some financial help.

tsstss7

Op could you not buy a share of the property thus giving your grandad cash to do up the house?

sloughflint

TEDDYRUKSPIN wrote: »

I believe this section has gone way out of control. Too much ideas for a person who will now have a big headache.

So what possessed you to even mention taper relief? The house is worth less than 100k.

sdooley

Giving you the house or a share in it might not be a very good idea for either of you. From his point of view he can't sell up if he needs to buy a sheltered housing for example. From your point of view you will get (a share in) the property at current low market values but if you sell after he dies, you will have to pay capital gains tax as you don't live in the house. Now that might not matter if the value of the house only goes up a few thousand pounds but if house prices shoot back up again.

Is it an option for you to lend your grandfather the money? So long as you document the loan (nothing complex, but you should both sign to make it clear it isn't a gift) then there isn't much of a worry around tax and you'll get what you lend him back if he sells up to go elsewhere or out of his estate if he lives in the house till he dies. As people have said above inheritance tax isn't going to be an issue here so don't worry about that (unless your gramps has a huge secret stash of cash!)

If you don't have the money to lend to your grandfather, then one of the equity release schemes might be a good idea. But you need to make sure it's good value for money as the terms and conditions can be quite different. If the interest rate is variable rather than fixed, you might want to go with a larger high street bank because some small lenders tend to put their rates up if they need more income. Larger banks have reputational issues.

I think it's great that you care enough to want to help someone two generations above you out; but make sure you don't get yourself in difficulties with it. If you were party to a mortgage on your grandfather's house it might cause you difficulties if you needed a new mortgage yourself on affordability tests.

margaretclare

I agree with all of the above. Basic common sense.

'Too much ideas for someone who will now have a big headache' - well, apart from the mention of IHT which was irrelevant, one of the fruits of asking for ideas/suggestions on a board like this is that you will get them!

When we did our equity release in 2003 it was suggested that we do it on a fixed-rate basis, the argument being that interest rates might go up. We declined, had it on a variable rate, and the interest rate has gone down with each cut in the Bank Rate.

wise_fool

sdooley wrote: »

I think it's great that you care enough to want to help someone two generations above you out

Yeah, so do I. Nothing like getting your hands on the house before the old codger leaves it to the cat's home.

So thoughtful to want to spend money improving it. :T

CLAPTON

ps

I didn't notice the bit about existing secured loans... he won't be able to transfer the property to you without either paying off the loans or getting the creditors permission (unlikely I would have thought)

consultant31

wise_fool wrote: »

Yeah, so do I. Nothing like getting your hands on the house before the old codger leaves it to the cat's home.

So thoughtful to want to spend money improving it. :T

Sarcasm is the lowest form of wit :mad:

SouthCoast

Many people find that they start to think more about where they live as they grow older. You may be happy staying where you are, but could do with some support to make life easier. Do you need repairs or adaptations to your home to be able to carry on living there comfortably? Or perhaps you are thinking about moving somewhere smaller or nearer to family and friends. Would moving in with your family be a good idea? What about sheltered housing? Would a care home be right for you?

Housing options for older people


http://www.adviceguide.org.uk/index/family_parent/housing/housing_options_for_older_people.htm