advice on mortgage deposit

bunglesabout

Hi all
sometime next year I intend to sell my property and hopefully buy a bigger home to get out of the 'box' that I currently live in. In order to do this my mother is also going to sell her small home and 'gift' me 100k of the profit to lay down as a deposit.
When I buy the new home, my mother will move in with me, but the deeds/mortgage will be in my name only.
This is because she does not want the money back, and does not want to be a joint mortgage holder either. She does not like dealing with money matters (my father did it all before they divorced) and she would rather have everything in my name and prefers this arrangement.
However I have concerns about this and although i intend to in the near future, have yet to seek legal advice about it.

What I would like to know is if by doing this we would be breaking any laws, or if there were any tax implications I should be aware of?

If there is a problem with it, are there alternative options we could look at to enable us both to live in a bigger home, without my mother being a joint mortgage holder?

Any advice you can give me would be gratefully received

Bungle

yelf

no tax or legal issues. The gift will be classed as a PET for IHT, but wont be an issue after 7yrs (and would only ever be an issue if her estate was over her nil rate band). She would have to sign a disclaim saying she had no interest in the property as she is living there. If the mortgage comoany also know its a £100K gift they may ask for written confirmation that she has given it as a gif t and you dont have a nice £100K debt to your name.

Radiantsoul

The risk would seem to be on your mother's side. If you were, say to become bankrupt, the house is repossessed or you decide to sell the property and turf her out then she would most likely end up homeless.

I suspect the mortgage company would want your mother to sign a deed of postponement which simply means that your mother cannot stop the mortgage company repossessing and selling the house.

bunglesabout

Hi
thanks very much for your replies. It has cleared up a lot of my concerns.

Bungle