Aging mums house options

edgex

are the EA's really stating that small a difference between a 2bed bungalow & a 4bed house?!


any repairs that need doing to the fabric, you mention a lintel, roof etc, get them done.
is the property insulated, double-glazed etc? if not, those are next on the list.

the above would really need doing whether selling or staying
if she stays, the works done, & its an improvement
if selling, the works done, & the property is easier to sell at its proper 'value'

can use the endowment to help pay for it, when that pays out.


then look at the electrics & heating
kitchen, bathroom etc are more decorative, so can wait till the end.

Catti

EdInvestor wrote: »

I fear you will be caught by the Gift With Reservation of Benefit Rules as Mum is not paying rent (and you are not being taxed on that rent). Also if she needs care the local authority is likely to regard the house as still hers under the Deprivation of Benefit rules.

Not necessarily..... Reservation of Benefits relevant if we are talking about IHT but that hasn't been mooted and she may well benefit from transferring a late spouse's nil rate band too. As to deprivation of assets, that might apply if she transfers ownership to the OP, but there are also clear reasons why it might make economic sense at this time and not simply be a device to avoid such a charge. The avoidance of such costs is a key element and this hasn't been mentioned except by me! If she does not envisage ever needing care and is pretty much fit and healthy at the moment - D of A may not be relevant.

localhero

sw_jay_______________________ wrote:

I've just been in exactly the same position.

In the end my mum sold her house to me and my sister, we paid for the repairs (about 15k) and then the rest was given to us early as our inheritance. My mum really wanted give it to us while she was still around to watch us enjoy it.

She's now able to live in the home that she's owned for 30 years rent/mortgage free for as long as she wants or is able to without any financial worries.

And I now have a very healthy deposit for my own home aswell as having a 50% share in this one.

Everyone wins

....Until you have to pay capital gains tax on it which wouldn't otherwise have been the case or you or your sister have financial/marital difficulties or your mother wants to move or raise capital against it or falls out with either you or your sister....

Putting the property in your names will not reduce IHT and if your mother was concerned about protecting the property from care fees, then putting it into trust would have made more sense.

baby_boomer

My mum is just moving from a 4 bed family home to a small 2 bed ground floor apartment in the next village.

After costs she will make no more than £25K but the annual costs should be less.

Downsizing is over-rated as a financial panacea. The important thing is that it improves the quality of life the elderly person.

If the main effect is to separate them from their long term neighbours and friends then the result can be disastrous.

ka7e

Ask your Mum where she would like to be in 5, 10 or 15 years and realistically will she be able to cope with her current home?

My parents had lots of opportunities to downsize when they were younger, but always put it off for fairly trivial reasons. Now in their late 70's, the family home is a money pit they can ill-afford.

A bungalow always attracts a premium, we have an ageing population, yet builders concentrate on apartments (in blocks without lifts as they are expensive to install and maintain) and family homes. My Mum and Dad will only be able to afford a small 2/3-bed bungalow if thy sell their 3-storey, 5-bed house!

Also older, poorly-insulated bungalows can be just as expensive to heat and maintain as a semi. Alternatives are new-build semis or terraces or sheltered/retirement housing. Unfortunately, many retirement developments were built in the 70s with night storage heating and need supplementary heating during the day.

23rdspiral

:rotfl:if i called my mum elderly at just over 60, she'd string me up!! :rotfl:

on a more serious note, we couldnt persuade granny to move when she was younger, fit and able, and when she was 93 she was still fine in her 2 story victorian terrace, so perhaps she was right.

But now she's 97 and not doing well. She's living in one room and her son is a live-in carer. We know and so does she, that if we moved her now, it would be a quick end. She's now very very attached to her things (never was before!?) and keeps complaining that she'll loose her lovely house when she dies. Of course we all will, and it's more a sympton of a deteriorating mind, but it still isnt easy to hear.

We do wish we'd insisted she move into sheltered perhaps 10yrs ago, but you can't change the past. We've all learnt and are going to ensure this pickle doesnt happen to us.

Good luck and best wishes with facing the decision early.