Future Planning

Locana

Thanks,

Mortgage options for me? I didn't think I could mortgage as its not mine?

My flat has £85k (54% LTV) equity in it. Consent to let wouldn't be a problem for the first two years and the yield is around 16%. I'm not sure that I could part from it, TBH.

If I sell that and help mum then it starts to complicate things with my sister who doesnt have money to 'put in'. I want everything to be equal with Sis! That would also tie me with living with mum for the next possible 30 odd years and it would never really be 'my home'. In my eyes it will always be my parents home with their stamp on it and flowery curtains.. My sister thinks I'm already sad and lonely, and if I move in with mum I'll never neet someone... Im 37..

We will need to sit down and have another discussion. The other family member is basically just poncing off my mum, free rent, as she knows mum cant stay by herself... :-/ We know she will leave soon as shes beginning to pee us off and knows her free ride is nearly over.

My head is hurting.. These convos are really hard to have with Mum, and the more complex its getting the more it sounds like me and sis are after her house! I don't like this feeling as we really just want to make sure she is ok!

Locana

Locana

And shes just told me the mortgage payments have increased from 300 to 550 as the bank are charging whatever increased interest due to the circumstances. Arrrggghhh.

I guess no will is needed either, unless she wants to give it to the local Cats home.

Head. Hurts.

NAR

RAS in post #5 has given the best advice. The repayments (now a lot higher) are only covering interest and she has no means, unless she wins lottery, of ever repaying the £140k mortgage. It will then be a matter of downsizing or renting.

getmore4less

Start from the default possition
In 3 years time there won't be a house.

It's not about house grabbing it's house saving if that's what peope want.

If sis is unable to help then there is not lot she can do.

Mum has the problem, living in a house she can't afford and needs someone living with her.

break that down,
what are the living with her options, there is you or sis anyone else? does she have any siblings/parents/cousens etc.

Finance who can raise funds.

The ball is in her hands she needs to decide what she wants.

You either try to come to some comprimise that saves the house or start looking for alternative solutions, 3 years is not a long time and it looks like the lender is getting touchy.

The temp possition of you renting your place and moving in for 2-3 years is just delaying the inevitable so probably not a good thing to do unless there is agreement on the future.

If you try to keep the house with you buying much of mum out she needs to know things will be changing for you to take that option if you want to make this your home.

if you rent the flat how much could you raise on your income alone.
There will still be the logistics of mum still living there and still needing a mortgage, it may be a non starter.

NAR

Locana wrote: »

There is only my sister and I, and she wants the house to be left to both of us.

Which OP, you now hopefully realise will never happen as your mum can't clear the £140k. She will need the balance of the house sale to "live" the rest of her life.

Locana

Thanks all very much for your help.

Mum can afford to live there by herself, she earns good money. Its just that she won't be able to pay off the 140,000 in three years. She only needs someone to live with her due to her not being able to stay by herself since Dad died.

There are no other financial solutions except sell and downsize, I guess.

I can raise about 230,000 mortgage on my own but we havent even had that conversation, whether thats even what she wants!

Its a mess. Me and Sis will talk to her tonight. Gotta be done.

But thank you all so much for your help. Just goes to show you really need to sit down and sort your 'affairs' as soon as you can.

Thanks
Lo

RAS

If you agree to cover the mortgage, then you need to become tenants in common to cover your portion of the equity in the house; mum then wills the rest as she wishes.

Locana

Oh ok. That sounds complicated but an idea to put to her!

Thanks, I think I need to google some info on tenants in common.

Thanks
Lo

daska

It's not desperately complicated. Traditionally most couples bought as joint tenants where everything is owned by more than one person and automatically passes to the survivor when one of them dies. Tenants in common sets out how much each person owns of a property so they can each dispose of their part as they wish.

But you do need to make sure it's all done properly so the transaction can't be challenged if she subsequently needs to pay for care. Bear in mind that if that is needed then a charge will be put against the house and that will have to be settled at some point and may require selling the house.

getmore4less

How long can mum keep earning what will her retirement income
be, if she has good income has she been overpaying.

Her income long term may determine the longest term you can get for a joint mortgage and the resulting payments.

£350k house, mum owns £210k(60%) mortgage £140(40%).

The issue will be do you want to live with mum long term.

Will her gifting you part of the house and leaving the rest for sis cause any issues.

Is that £220k with the flat rented. that would buy 60% leaving mum with 40% or you could go 50:50

Smaller mortgage shorter term might be needed

if you sold the flat you could buy mum out and leave her with cash(no security for mum)

I think you probably can work something out but it has to be what you want.