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Buying a share in a parents house - advice needed.
Mikey_Boy_3
Posts: 1 Newbie
Hello folks, first post so bear with me if this has been covered before.
My mother and younger brother both live in her house that was recently valued at £120,000. The house was purchased by my mother for £58,000 a few years ago and there is 15k outstanding on the mortgage.
Due to ill-health my mother has been given a bungalow by the local housing association and is moving in shortly. She wanted to sell the house to my brother and pay off the remaining mortgage. Unfortunately he cannot stretch to the full asking price and also my mum is keen that myself and my sister will benefit from any future sale. So this is the plan:
My brother plans to get a mortgage for 50% of the house (£60,000) so that he and my mother become 'tenants-in-common'. She would then use money from the sale to pay off her outstanding mortgage, furnish her new bungalow and help her three children out financially. She then plans to write a will stating that the remaining 50% she still owns be shared equally between her 3 children in the event of her passing.
Is all this possible?
Have I understood 'tenants-in-common' properly?
If she needs care in future what will this arrangement mean?
Who should my brother approach first to set the whole thing in motion?
My mother and younger brother both live in her house that was recently valued at £120,000. The house was purchased by my mother for £58,000 a few years ago and there is 15k outstanding on the mortgage.
Due to ill-health my mother has been given a bungalow by the local housing association and is moving in shortly. She wanted to sell the house to my brother and pay off the remaining mortgage. Unfortunately he cannot stretch to the full asking price and also my mum is keen that myself and my sister will benefit from any future sale. So this is the plan:
My brother plans to get a mortgage for 50% of the house (£60,000) so that he and my mother become 'tenants-in-common'. She would then use money from the sale to pay off her outstanding mortgage, furnish her new bungalow and help her three children out financially. She then plans to write a will stating that the remaining 50% she still owns be shared equally between her 3 children in the event of her passing.
Is all this possible?
Have I understood 'tenants-in-common' properly?
If she needs care in future what will this arrangement mean?
Who should my brother approach first to set the whole thing in motion?
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