selling 2 hours and moving in with parents in law.

Thrugelmir

slade2 wrote: »

Are there any insureance companys that we could contact with that would potentually insure us against this ever happening? i.e avoiding the costs of extended care home stay or insuring agaisnt it now?

A Lloyds underwriter will insure any risk at a price. Though unlikely that payment of a one off premium would suffice though.

kingstreet

One or two points.

using the same £130,000 mortgage for the new house

This mortgage is repaid at the point the current property is sold. You may be able to transfer the rate to a new mortgage with the same lender to avoid penalties, but you cannot transfer a mortgage from one property to another.

Who is going to own this new property and who is going to be party to the mortgage?

If the in-laws are included in the ownership, they will have to be party to the mortgage, which may create affordability/term problems, based on their ages.

If they are not included, their "gift" will be a problem as a lender will view their "gift" as an interest in the property in which they will be living, but not named on the mortgage.

This is fraught with issues. It needs very, very careful planning. It could all fall apart right at the end when thousands have been spent on fees and plans because someone failed to resolve every potential problem at the outset.

suki1964

http://www.ageuk.org.uk/Documents/EN-GB/Factsheets/FS40_deprivation_of_assets_in_the_means_test_for_care_home_provision_fcs.pdf?dtrk=true

We done this ourselves 8 years ago, we sold, mum and step dad sold, gave us 120k and we bought a big enough house that they could be looked after at home

Indeed stepdad needed full time care till last year when he died

Mum is still able bodied and is out and about daily

Siblings all know that we have had any share of inheritance already they also know they are getting the better as its been us with having to do all care for the past 8 years of two very difficult people.

It's not easy living with parents. You really do need to sit and talk out every possible scenario - including what happens if someone wants out

slade2

kingstreet wrote: »

One or two points.


This mortgage is repaid at the point the current property is sold. You may be able to transfer the rate to a new mortgage with the same lender to avoid penalties, but you cannot transfer a mortgage from one property to another.

Who is going to own this new property and who is going to be party to the mortgage?

If the in-laws are included in the ownership, they will have to be party to the mortgage, which may create affordability/term problems, based on their ages.

If they are not included, their "gift" will be a problem as a lender will view their "gift" as an interest in the property in which they will be living, but not named on the mortgage.

This is fraught with issues. It needs very, very careful planning. It could all fall apart right at the end when thousands have been spent on fees and plans because someone failed to resolve every potential problem at the outset.

I suppose we are after the best situation that will give us the best mortgage deal for the next 10 to 15 years. My inlaws are in there early sixtys at the moment so I am hoping they have a number of years left in them to help us bring up the young ones and then we can look after them in there later years. If by having them on the mortgage we can look at getting better deals with a lower interest rate we can afford to overpay lots and reduce the term conciderably. Our first mortgage isnt the best but I believe that was becuase of the financial situation we found ourselves in at the time we are currently paying 5.9% fixed for 5 years and I know that we could do a lot better than that going forward.

slade2

suki1964 wrote: »

We done this ourselves 8 years ago, we sold, mum and step dad sold, gave us 120k and we bought a big enough house that they could be looked after at home

Indeed stepdad needed full time care till last year when he died

Mum is still able bodied and is out and about daily

Siblings all know that we have had any share of inheritance already they also know they are getting the better as its been us with having to do all care for the past 8 years of two very difficult people.

It's not easy living with parents. You really do need to sit and talk out every possible scenario - including what happens if someone wants out

I am hoping we would be some years away from this yet but yes I understand its never easy. I am not even sure we would be in a position to offer them full time care in our house so it might be that they need to go into a care home but that is a whole other subject and one we can look at insuring agaisnt if needed for the piece of mind.

kingstreet

slade2 wrote: »

I suppose we are after the best situation that will give us the best mortgage deal for the next 10 to 15 years. My inlaws are in there early sixtys at the moment so I am hoping they have a number of years left in them to help us bring up the young ones and then we can look after them in there later years. If by having them on the mortgage we can look at getting better deals with a lower interest rate we can afford to overpay lots and reduce the term conciderably. Our first mortgage isnt the best but I believe that was becuase of the financial situation we found ourselves in at the time we are currently paying 5.9% fixed for 5 years and I know that we could do a lot better than that going forward.

Having them on the mortgage will normally mean an expiry age of 75, so a term of less than fifteen years. That will result in higher payments. You'll have to pay an early repayment penalty to escape that fix. Check your paperwork to see how much it will cost.