Buying my Mothers house!!!!!

SavingsDrive87

Hello,

I'm hoping the MSE forum could help me with a little problem.

My mum owns a house worth 200K, she still has a 90k mortgage. Since being made redundant a number of years ago, she has been paying interest only. This has been going on for too long and now the mortgage term is coming up. It is unlikely she will pay back the 100K.

Options -
-win the lottery
-she could earn a lot more money very quickly
-downsize (but she won't be living anywhere near family, friends, grandchildren)
-lifetime mortgage, only ever paying back the interest, till the end of her days, then the bank takes the house at end.

or and this where i need advice. My sister and I buy the house for 100K. My mum gets to stay in the house near her family etc. We get some inheritance and a bit more in the future.

I currently live there (I'm 27), my sister is married (best just to say older) with two kids, her own mortgaged house.

We know we can afford it, but, we believe my sister won't get a mortgage because she doesn't have any intention of living there and that I won't get a future mortgage for my own place, because technically I already have one place to live with a mortgage although small and a mortgage company will be nervous about my mother living there? Has anyone been through something similar? Any advice, tips, ideas greatly appreciated. Thank you in advance.

xylophone

If your mother sold for full market value, would she be able to buy a small flat (say) outright?

This would enable you to find a property of your own and not tie your future to to your mother's and sister's arrangements?

coolasacucumber

You and your sister could buy it jointly as a buy to let...?

BrassicWoman

are you paying mum a decent market rent for your room that would let her pay the mortgage down? £100 a week plus bills say? Do you owe her any back rent?

Linton

My advice is for you not to tie your finances together in any way. It could lead to serious problems should your circumstances change - eg you die before mother. You getting your inheritance early with mother having little spare money is risky for her should she need to pay for care in the future.

The easiest way forward is for mother to sell her house and use the proceeds to buy a flat. You maybe could help her out by giving or lending her some extra money.

xylophone

You and your sister could buy it jointly as a buy to let...?

They might well have problems finding a mortgagee prepared to accept the mother's remaining in residence?

I seem to recall that other posters have commented that renting to family may be a reason for refusal?