Purchase 1/2 of my mothers house

RenovationMan

Thrugelmir wrote: »

Why not help her by clearing her £20k of debt.

Then she keeps the house and has no ongoing rental liability.

Plus you can put a charge on the house for the £20k so that when it is sold you get your £20k back before the equity is either used to fund your Mum's retirement home or divided up between her heirs.

The charge is registered on the deeds with the Land Registry and can be arranged by a solicitor for a modest fee.

Thrugelmir

Ben27 wrote: »

Could she not get a £30k remortgage on an unencumbered property on an 8 year term when her current mortgage runs out? (taking her to 75 the max age for most places) Presumably she'd be paying less interest on a mortgage than her current debts, her monthly repayments would be about £380 pm and she'd have £10k to spare for a cracking holiday etc.

That is making the assumption that she will be able to work until she is 75 to repay the mortgage.

Also why take on yet more debt?

Ben27

Most of it is already debt, so substituting a cheaper debt, presumably, for a more expensive one. If she sells half her house she is in effect taking on a financial commitment in a similar way, except the length of the commitment is x years as opposed to a finite amount of years.

I take your point about work, I assumed she'd have pension etc after she finished work, but also she'd have the rent to pay if they go down the buy half the house route anyway - it appears the downsizing idea has been effectively ruled out, for now anyway.

Ben27

*NB t'toher way round! substituting a more expensive debt for a cheaper one!*