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Taking over a mortgage...?
nipper76
Forumite 31 Posts
hiya.
I'm looking for some help / ideas on an idea i had that's way out of my league.
My dad who is 66 has a mortgage that he has owned since i was born, he owes £25k ish (it cost £19k 27 years ago) and is never going to be able to repay it now. he only pays about £110pcm towards it which i believe i paid through housing benefit.
his health is deteriorating and he could do with moving to a little flat as the house is falling apart around him.
I'm not a high earner, but i am working full-time in a secure job and it's a shame to see the property go to waste when i could and would make the place livable again, aswell as pay of the mortgage and secure a future for my kids.
Could i literally just take over the debt and the property, and then... 2 scenarios i was thinking of...
either, could he maybe get help with getting a property through the local housing.
leaving me to clean the house up to live in ( i currently rent a property so in sense by giving up my home... i could pay the mortgage at the house )
its a 2 bedroom house, but the current front room would make an ideal bedroom which i could rent to help towards the house costs.
or.... not really the idea option but plausible... if i was able to take over the property, could i rent a bedroom to him..? would housing benefit pay him..? (not meaning to sound tight by renting to my dad)
then in turn i could pay the house off and make the house livable around him.
I'm looking for some help / ideas on an idea i had that's way out of my league.
My dad who is 66 has a mortgage that he has owned since i was born, he owes £25k ish (it cost £19k 27 years ago) and is never going to be able to repay it now. he only pays about £110pcm towards it which i believe i paid through housing benefit.
his health is deteriorating and he could do with moving to a little flat as the house is falling apart around him.
I'm not a high earner, but i am working full-time in a secure job and it's a shame to see the property go to waste when i could and would make the place livable again, aswell as pay of the mortgage and secure a future for my kids.
Could i literally just take over the debt and the property, and then... 2 scenarios i was thinking of...
either, could he maybe get help with getting a property through the local housing.
leaving me to clean the house up to live in ( i currently rent a property so in sense by giving up my home... i could pay the mortgage at the house )
its a 2 bedroom house, but the current front room would make an ideal bedroom which i could rent to help towards the house costs.
or.... not really the idea option but plausible... if i was able to take over the property, could i rent a bedroom to him..? would housing benefit pay him..? (not meaning to sound tight by renting to my dad)
then in turn i could pay the house off and make the house livable around him.
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If the house isnt suitable for your father, I dont see how option 2 helps, and I dont believe this is possible.
Are you likely to inherit it anyway? Why not just pay his mortgage for him, rather than uproot him at this time of life.
PS what happened to the repayment vehicle he would have taken out at the time of the mortgage if interest only?
i would live there also and pay the mortgage and start attending to the work that required to stop the house falling apart around him.
the house is worth about £130,000
yes im likely to inherit the property. but by that time i can see the place being just a shell.
the place is too big for him to maintain. and nothing gets done.
thats why i was kind of thinking if he was able to give that place up to me i could start securing a future for my kids, and either give him somewhere more comftable to live or the council would help him into a place thats smaller and more suited.
* the council would still take it into account when assessing him for benefits (google "deprivation of assets")
* the Title would be switched from his, to your, name.
* this means his mortgage would need to be paid off
* you could apply for a mortgage in your own name if neither of you could afford to pay off his mortgage
* Given the amount of equity in the property, you should be able to get a mortgage yourself, depending on your own income and credit history
* Given that you are likely to inherit eventually, why bother? Why not leave it in his name but do it up/maintain it?
* and move in anyway as well, but still in his name?
However, if the aim is to move him to a smaller place, why can't he sell, buy a smaller (cheaper) place, and use the difference in sale/purchase price to pay off his mortgage.?
Are you in a position to get a big enough mortgage to buy the house, refurbish it and keep a roof over your fathers head?
but yes, the princable of taking over the mortgage was asked over a year ago.
so seeing as the circumstances had changed i thought asking the question again and getting some fresh ideas would be ok.
i very much doubt im in a position to get a mortgage at the moment.
but given the opertunity i think i could afford to pay the mortgage.
as i already pay all my own rent which is £375pcm plus all the council tax and bills etc. i recieve no help what so ever.
again, it was just an idea and i was looking to see if there was a way that i could secure the home i grew up in for mine and my childrens future, as my father is never going to accomplish this.
and its sad to see it just slowly falling apart.
sadly im not in the posistion to do the house up and live in my current property. so i was looking at other options, with the intention to better my fathers life, even if it it means that his curent lifestyle is upset.
Along with the other important points in G_M's post, this is the one I'd most like an answer to. I just don't get why he doesn't sell, buy something smaller, pay off the mortgage, and live out the rest of his life somewhere comfortable. He's still alive and kicking, but you're worrying about inheritance... (Sorry if sounds blunt, I can't think of any other way of saying/explaining what I mean. Why not just help him sell and spend the remaining money on a cheaper/smaller property with some sort of 'assisted living' if needed.)
Jx