Advice for my mam..

Tancred

Locana wrote: »

Hi

Wondering if you can help please!

My mum is 62. Has a house worth 340,000 with a 140,000 mortgage on. This mortage is interest only....

This 25 year mortgage ran out in October 2012, and she has told us that they have let her have another three years before she has to pay back the money. She has no means of doing this. They have also increased her interest, so mortgage has increased by £200 per month. She is coping ok with this, she has two jobs and a lodger.

What are her options? I know she can sell and downsize, but the nearest property that she can buy would be 15 miles away, and I know she would not be keen to move away from me and my sister and her 'circle'. She has real issues with staying by herself.

I lived with her for two months in Nov/Dec, and we toyed with the idea of me and my daughter moving in with her for a couple of years. So I think I am open to that. Would I be able to help her out in any way?

I have a sister and she lives in rented accommodation with her family. I have a mortgage on my flat 54% LTV, and would be able to rent mine out. Consent to let wouldn't be an issue.. I earn 33,000 per year with other income of 4,000. My flat would rent out for 12,500 per year.

What are our options? My mum is sticking her head in the sand, and I think she needs to tackle this now rather than later. Ideally she would like to remain in the family home and selling it to be the last option.. I don't think she wants to leave as it was hers and Dads home and he passed away in July 2011.

Do we have options?

Thanks so much
Lo

SELL!!! There is no alternative. She can always rent and put her stuff in storage while she waits for the right property.
Anyway, 15 miles is not exactly far, for goodness sake!