Buying into parents house - mortgage for an extension

73bugz

Hi

I posted this on a different board and didn't get a great response, so if it's ok I will try here.

I hope that this isn't too complicated but I would appreciate any sound advice please.

Basically, myself and my partner live with my Mother in her three bedroomed house. The house is in my mums name and she owns it out right. My partner and I are looking to start a family and need more room. Mum isn't in the greatest of health and it works out better all round that we care for her and live with her.

Rather than move to a bigger house, as we like where we live and have family and friends nearby, we have decided that the best option is to build an extension onto the house.

Without going into great detail, the cost of the extension is going to be around £70,000 - there is currently no mortgage on the house and my partner and I don't have a mortgage. The house is probably valued at £180,000. The house will be left to me one day in my Mothers will.

What would myself and my mother need to do to go about obtaining a mortgage (payable by me) to have the work carried out?

I guess that one of the first things to do is get my name put on the title deeds of the house, but from there on, I haven't a clue. Apart from trying to borrow the money!

Are there any problems with tax which we need to be aware of? Can i add myself to the deeds of the house easily? Do i need to purchase the property wholly from my mother?

As I said earlier sorry for all of the questions, but like I said I haven't got a clue.

Thanks

RAS

Hi

Your starting point might be to work out what would happen if your mum ever has to go into residential care. If she is perceived to have disposed of an asset, then the authorities can reverse the action.

The next point to consider is what happens if you and your partner split. if you are married, then your partner could claim half of any asset you own, which would be part of the house.

You need legal advice and mum needs to see someone separate from you to get independant advice.

getmore4less

To save going over the same ground.

http://forums.moneysavingexpert.com/showthread.html?t=2373163&highlight=

73bugz

Thanks for putting up the link getmore4less, you certainly are quick at posting replies, if it's ok with you, I have posted it here as well just in case somebody else might be kind enough to offer some advice.

puddy

ive read the other thread, i have a feeling that you cant put yourself on a mortgage only, where there are 2 people on the deeds. ie the people on the deeds have to be on the mortgage, meaning she would have to apply for the mortgage with you

princeofpounds

The problem is that she owns the house, but you want to be paying the mortgage.

The problem is that no-one will give you a mortgage on a house you don't have title on, and they might not give her a mortgage if she doesn't have the income or age to service it (I don't know her circumstances).

If she can raise the mortgage herself and contract with you to pay it, fine, but then you need to address how to protect the equity you have invested in the house. Remember as suggested above she may be required to sell her assets to fund her old-age care. Or what happens if you fall out?

Realistically, you will need to go to a solicitor and negotiate part-ownersip of the house (tenants in common or joint tenants depending on what is most suitable). She may need to go to a different solicitor to get independent advice on the implications for her. Then you will need to apply for a joint mortgage which you will service. You probably need to wrap this all up in a contract, with contingencies in case you fall into dispute.

puddy

the other thread says shes 74 and not in great health, i cant see it myself

op, why dont you suggest to her she sells, gets herself a manageable retirement flat, all ground floor, easier to heat etc, help on hand, then you can use your early inheritence to buy a house nearby
you probably only need the extension because your mum is still living in the home

VIGILANT22

73bugz wrote: »

Hi

I posted this on a different board and didn't get a great response, so if it's ok I will try here.


You mean you hope someone on here doesn't discuss deprivation of assets.!!....Don't insult the mortgage board...you rcvd enough info on there to be well informed....problem appears to be you didn't like it......

73bugz

VIGILANT22 wrote: »

73bugz wrote: »

Hi

I posted this on a different board and didn't get a great response, so if it's ok I will try here.


You mean you hope someone on here doesn't discuss deprivation of assets.!!....Don't insult the mortgage board...you rcvd enough info on there to be well informed....problem appears to be you didn't like it......

VIGILANT22 wrote: »

73bugz wrote: »

Hi

I posted this on a different board and didn't get a great response, so if it's ok I will try here.


You mean you hope someone on here doesn't discuss deprivation of assets.!!....Don't insult the mortgage board...you rcvd enough info on there to be well informed....problem appears to be you didn't like it......

No VIGILANT22 your wrong - I don't look at every board on this website and this may be the case for posters on this particular board, maybe not everyone reads the mortgage board. I am not insulting anyone.

I am simply asking for advice from others, I am not looking at avoiding any tax or trying to avoid paying any care fees which my Mother may need to pay in the future.

The plan is to care for my Mother at home so that she doesn't have to go into a care home in the future. My partner is a nurse and we were able to nurse my Father over a period of time at home who was suffering from cancer. It was his wish to spend the rest of his life at home, not in a hospice and we cared for him at home untill he passed away.

To answer the other poster, we are a close family and I honestly do not think that we are going to fall out. Although, life isn't straight forward and I understand that you have to prepare for this. Mum selling her house and moving into an apartment isn't really what any of us want.

poppysarah

73bugz wrote: »

The house is probably valued at £180,000. The house will be left to me one day in my Mothers will./QUOTE]


Until it is though, it isn't.

She could remarry. She could change her will. She could leave it to the cats home. She might need residential care that needs funding.

Very complicated and a conflict of interests as to what's best for you and for your mum.

VIGILANT22

poppysarah wrote: »

73bugz wrote: »

The house is probably valued at £180,000. The house will be left to me one day in my Mothers will./QUOTE]


Until it is though, it isn't.

She could remarry. She could change her will. She could leave it to the cats home. She might need residential care that needs funding.

Very complicated and a conflict of interests as to what's best for you and for your mum.

In addition to the above...what would happen of the OP went bankrupt??.where would that leave mum?