Advice Please

spudromeo

Sorry new to this, so your help would be greatly appreciated.

My mother (73) is becoming more and more housebound, and she is looking to move in with me and my family.

We currently live in rented (private) accommodation, and my mum wants to give us some money to towards getting a mortgage for the property and to have it converted to her needs.

She currently has a house worth around £280,000 with an outstanding mortgage of around £18,000.

She wants to give us £100,000 out of what value there is in her house towards a 20% deposit on the property we live in and the rest for the works to be done to accommodate her needs.

We wanted to release the money, so that we could purchase the house then have the work done, and in around 12 months, my mother to move in and sell her property.

We talked about the equity release scheme, but there seems to be a problem with that as these schemes are designed for lifetime loaning, and I am not sure but hear there are very hefty Early Repayment Charges.

As my mum is a pensioner now, I am pretty sure the bank will not extend her mortgage for the 12 months or so needed.

Does anyone have any advice onthe best way to proceed.

Thank You In Advance.

dimbo61

Think you will need to move to a larger rental property once Mum has sold her home and then look at buying a suitable property for everyone

lee111s

It may be easier to sell her place, pay off the mortgage and her rent somewhere suitable until the work on your property to be is complete. Appreciate it might be a bit of hassle moving twice in 2 months but it might be worth it in terms of the financial simplicity of it.

Crashandburn

I'm afraid there's no easy way to do this one especially in light of your mother's age.

I would go nowhere near the equity release mortgages on the basis that your intention is to sell her property in the not too distant future and their charges are so extortionate for early repayment.

The only way I could see something like this happening is if the sale of her property coincided with the purchase of your new property. The downside being that you would have to be undertaking all the works to the property with you and your mother living in the house.

Another costly solution would be for her to sell you the property and you run it as a regulated buy to let/dependants mortgage but the downside being this could restrict you on your intended purchase going forward.

spudromeo

Yes there does seem like some brick walls in front of us.

We ideally would like my mum to stay in her property until works are done, but not sure if this is possible.

We would be happy to pay £5-£10k for the benefit of having this done, but not sure if the equity release option would be more than that.

Could I join her on her mortgage and get a bridging loan.

Sorry if this sounds stupid, I am just throwing things around in my head.

Thanks All.