Desposit as part owner - advice

Pammy

Hi,

My mother was diagnosed with early dementia (still able to make decisions) and with her mobility issues needs care at home. I currently live with her.

To cover care costs we need to sell the property.

I must add I already own a property which was too small to accommodate mum so is rented out.

If my mothers house was sold for 700,000 and then 200,000 of that went towards a deposit on a new home and myself and my husband took a mortgage out on the rest (property max 500,000) is that allowed or are there potential issues with this?

Trying to find a solution to keep my mother at home where she wants to be.

Yorkie1

I suspect that most lenders will have a problem with the deposit coming from someone who will live at the property but not be on the mortgage / deeds.

Pammy

Yorkie1 wrote: »

I suspect that most lenders will have a problem with the deposit coming from someone who will live at the property but not be on the mortgage / deeds.

Could my mum be on the deeds? That's actually how I perceived it happening.

stephenni1971

Pammy wrote: »

Could my mum be on the deeds? That's actually how I perceived it happening.

Absolutely no chance of that.

Pammy

stephenni1971 wrote: »

Absolutely no chance of that.

So what are the options if she can't part own the home?

stephenni1971

Pammy wrote: »

So what are the options if she can't part own the home?

So just to confirm

You want to keep the house you currently rent

You want to sell your mothers home for £700,000

You want to use 200k for deposit on a new home for you, hubby and mum - needing a mortgage of £300,000

You would have £500,000 released as free money

Pammy

ywamer wrote: »

Have you thought about avoiding care home fees by putting the property in trust. As if your mum has the mental capacity that is an option. Google London Protection Advisors or email me [EMAIL="andyn@cityfinancecollective.co.uk"]andyn@cityfinancecollective.co.uk[/EMAIL]

Thanks. But this isn't about avoiding care home fees, it's about keeping my mum at home and paying for care in the home.

At the moment it's over £2000 a month and the only way to continue this is to sell the house. My house which is rented is too small and we want enough left over from the sale of my mums house to pay for care.

We are not going to get a house that accommodate her needs for anything under 300,000 unless we move to the middle of nowhere.

I would love to find a solution which doesn't mean putting her in a home when she is quite happy with me.

Pammy

stephenni1971 wrote: »

So just to confirm

You want to keep the house you currently rent

You want to sell your mothers home for £700,000

You want to use 200k for deposit on a new home for you, hubby and mum - needing a mortgage of £300,000

You would have £500,000 released as free money

Ideally yes, the fees are over 2000 per month and although she needs full on care she is not at the point of needing a nursing home and I would love a way to keep her in an environment she is happy in with her family and pets.

amnblog

stephenni1971 wrote: »

Absolutely no chance of that.

No chance of what? Mum on the deeds?

Senior_Paper_Monitor

ywamer - leaving aside your flagrant spamming of the site, please be careful with the 'advice' you are dispensing ....


As the OP already declared "mother was diagnosed with early dementia (still able to make decisions) and with her mobility issues needs care at home" therefore any action taken now would be taken in that knowledge that there is a likelihood of a future need for rechargeable care services and would be deemed for the 'purpose of avoiding' and a contrived transaction enabling the trust (or any other action) to be overturned as act of deprivation.






AND (having read the original post) the property is to be mortgaged - also generally makes such planning ineffective.

Pammy

Senior_Paper_Monitor wrote: »

ywamer - leaving aside your flagrant spamming of the site, please be careful with the 'advice' you are dispensing ....


As the OP already declared "mother was diagnosed with early dementia (still able to make decisions) and with her mobility issues needs care at home" therefore any action taken now would be taken in that knowledge that there is a likelihood of a future need for rechargeable care services and would be deemed for the 'purpose of avoiding' and a contrived transaction enabling the trust (or any other action) to be overturned as act of deprivation.


AND (having read the original post) the property is to be mortgaged - also generally makes such planning ineffective.

Well my mums house would be sold, there is no mortgage attached to that property but yes we are not in a position to stop any assets falling victim to being used for care and don't really want to do that anyway.

I'm finding the whole thing really difficult to know what to do for the best.