Urgent help needed re debt management

Boggled

Hi all,

I'm in the process of applying for a mortgage to buy my mother's house and need urgent advice to see if my plan is viable.

The reason being she has been off work with depression on and off for 3 years and pretty much buried her head in the sand in regards to bill payments. I had no idea of how serious her situation was until last week when i opened her post to find out the mortgage hadnt been paid for 2 months as well as credit cards utilties etc.

After speaking with my mum about the mess she has found herself in I assured her everything was going to be ok but together we would need to contact the lenders to see what was possible. The following day my girlfriend called me at work to say she was in hospital with my mum who had tried to take her own life. After 2 nights in hospital she is recovering but I urgently need to take away her financial burdons.

My mother is 60 and intends to carry on working but her montly income will no longer cover her mortgage and monthly outgoings.

I need to know if I can buy the house from my mum under market value as I have no savings and therefore her giving me a vendor gifted deposit.Value of the house is £130k and I would be getting a mortgage for £110k. I have had advice from a mortgage broker that this is a perfectly legal practice but I didn't tell the broker that my mum would need to then go into a debt management plan but it is vital that my mum stays in the house as she has huge emotional ties to it and i worry for her health if she has to leave and rent a property. This way she can pay off her mortgage by selling to me whilst she then technically rents from me by covering my mortgage payments.

We then need to clear her credit card debt approx £20k and I need to know if she can go into debt management with this debt as I understand bankruptcy wont be an option when she has under sold the home.

Any help would be appreciated

Senior_Paper_Monitor

You need to take professional advice over this - and you need to tell the adviser the whole truth. Advisers cannot advise if the client lies (or forgets to mention something).

For your mum to sell her asset at under market value and deprive her creditors of its benefit would be a serious offence - and you would also be responsible in knowingly doing so. It is probable that the solicitors would pick up on the issue anyway (and will require various undertakings if any asset is transfered under market value anyway).

Second property, buy to let property, occupied by family member etc all come into play in the considerations as well.

Your ambitions in this appear admirable - but you will need professional advice (see previous comment about full declaration of facts) to achieve it.