Getting a second property for ageing parent Advice

tommoturbo

Hi Guys a little advice please, ill try and keep this as simple as possible.

1. My mam lives in a house (mortgage free) but will be unable to manage once she is out of hospital.

2. There is a bungalow near us of which she would be able to manage or adapt.

3 Her equity for house sale would not cover new mortgage.

Question is i can get an interest free mortgage for difference and it would be in my name. would my mam have to gift the sale of her house for the deposit, im not charging rent as i just want her in a comfortable home close to us.

is there any legal or tax problems in this arrangement.

any advice appreciated.

cheers ian

G_M

How old is your mother? Does she have an income? Could she get a mortgage?

What is the value of her house? What is the cost of the bungalow?

Are you planning to buy the bungalow yourself? If so, Is you mum going to gift you the money from her house? This leaves her penniless and vulnerable.

It could also be considered "deprivation of assets" if/when she applies for Residential Care etc.

Will you get a mortgage in your own name? It would need to be a BTL mortgage since you will not be living there. Are you ready to be a landlord? Will the mortgage lender permit letting to family?

Do you already have a mortgage? Can you afford a 2nd mortgage? How much will it be for? What is your income? Your current mortgage(or rent)?

tommoturbo

Thanks for the reply you gave me a lot to think about there.

My Mum is 76 and has just undergone a major Operation of which on her discharge there is no way she could manage her house or even have it fully adapted (stairlift, walk in shower etc) due to size and orientation of service points and windows .

Her income is a pension, she has savings, approx house value is £70k and bungalow is 100k.

i was going to borrow 90k from bank on interest only. move her in

On my Mums house sale she would have to use the equity so her assets where not over the threshold where she would be in eligable for the care she would be receiving on discharge (her words)

thanks

tim123456789

you might find that this works for you:

http://www.homewise.co.uk/

bryanb

Tommo, i assume you mean an interest only mortgage rather than interest free? (Post 1)

rochja

Sounds like your mother's estate is not large enough to have to worry about death duty so a simple rewrite of the will to make sure you eventually get your money back regardless of how many beneficiaries there are would leave you free to consider remortgaging your own home and gifting the money - a huge step requiring a lot of trust and the ability to keep a roof over your head - but easy to implement

cattie

I'm not sure what part of the country you live in, but are there no retirement type properties in your area as these are often way,way cheaper than a comparable stand alone property & often have the benefit of an onsite warden, plus the benefit of fittings suited to the more elderly & infirm?

Or what about sheltered accommodation. Is there anything like that in the area? Even if you are a home owner, you can usually still put your name down if you qualify for one, & by the sound of it your mother would definitely qualify. She could then sell her house & live a comfortable life for the time she has left & not have any financial worries to cope with.

G_M

tommoturbo wrote: »

.....
On my Mums house sale she would have to use the equity so her assets where not over the threshold where she would be in eligable for the care she would be receiving on discharge (her words)

thanks

Not sure how she is going to 'use' £70K rapidly such that she remains within the capital threshold......

Giving it to you (to put towards the bungalow) would definately fall within the definition of 'deprivation of assets.'

Just so you know.

carefullycautious

If you contact your local authority housing dept she may be eligible for sheltered housing. As said above she could then sell her house and live comfortably for the rest of her life.

Have you hospital social worker who can help with this