Advice and suggestions needed

lunny_2

Its been a while since I've been here but I have been racking my mind as what to do in my financial predicament.

Back in 2002 i jointly purchased a house with my mother, she paid the deposit and we obtained a joint mortgage. I continued to live in the house until 2006 when I moved in with my [now] fiance.

Since I moved out I have continued to pay half of the mortgage which is now approx £55k (about 12 years remaining) on property worth iro £190k.

The property is a 2 bed terraced house with only my mother living in, whereas myself and my partner and our 2 children are living in a small 2 bed flat.

My mother is in her 60s and has given up work and gets by on her pension and a little bit of cleaning work.

What I would like to do is to access my share of the properties equity so that we can purchase a family house, but at the same time I am mindful that my mother will still need somewhere to live.

My fiance and myself 'should' be able to obtain a mortgage iro £150k

Realistically what options do I have?

Help!

Dave_Ham

Hi there,

You have "options" but could not even think of going into more detail, without a better appreciation of your situation.

You will need to consider the following and would look for a sensible broker to deal with both situations:

• Mothers age, income and employment and repayment plan for the remaining mortgage
• Your income, to potentially pay and sustain 2 homes as this will show on your credit report
• Your fiance's income, employment and credit score

Would suggest you have a chat with your Mother and then all of you sit down with a broker.

A lot of this will depend on your Mother's approach to the situation

Good luck

lunny_2

Thank you for your time replying Dave, I shall have to have a 'sit down' with her and look at the options.

I will return to this thread later

Conrad

To access your share, she would have to increase her borrowings. Equity release for older folks might not give you much as there are low limits on what she could release at her age, plus the whole property would have to be in her name.

Alternative is you say you are moving back in and wanting to increase your mortgage but that would present more risk for Mum if you could not pay it and furthermore lenders will be picky about her age although things are possible.

By far the simplest option for you is to sell that house but then where would she live?

Maybe you all club together and she can have an annex or something? That is not simple though and requires an experienced broker, you would never be able to do it yourself. For one thing lenders dislike official annex's.

Thrugelmir

Sell your mother the flat?