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Paying off mums mortgage and moving in with her

Hi, my partner and me have just sold our flat and will be moving in with my mum while we look for somewhere else to live, we all get on so not a problem. My mum has just asked us to consider paying of her remaining mortgage and to live there permanently. I'm an only child so the house would be going to me anyway but I'm not sure how best to go about it or if it's legal. We could easily pay of her mortgage and we'd have a bit left over from our sale. My mum is still healthy but I'm worried about in later years if she needs care, she has no other savings.

I'd be grateful for any advise.
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Comments

  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    As there will be no mortgage you could just buy a share of the house.

    perfectly legal.

    think about reason you may want to change the situation like you starting your own family and the place getting crowded.
  • Thanks for the quick reply. I'm now in my forties and have no plans to start a family so I can't see that being an issue. I must admit it would be lovely for us all to be mortgage free as if we were to buy our own property as we origionally intended it would mean getting another mortgage. She has said that once we have paid her mortgage off she would sign over the title deeds to us. I suppose what worries me is if she ever had to go into care. Would this still be her estate? She is also still married to my dad although separated a very long time. Would he have a claim on the property?
  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
    10,000 Posts Eighth Anniversary Name Dropper Photogenic
    Are/were your parents married? Is your dad named on the mortgage or deeds of the property? Your dad might have a claim on the property so get that sorted before handing over any money.


    If you're paying off some of the mortgage then you could own the property as tenants-in-common with your mother, she doesn't have to sign the whole property over to you.


    If you and your partner are already living in the property and jointly own the property with your mother then it's unlikely the council would take the property into account should your mother need residential care in the future.


    Make wills!
  • pmlindyloo
    pmlindyloo Posts: 13,073 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    How old is your mum?

    Is the mortgage in just your mum's name? What financial arrangements were made when your mum and dad separated?
  • Mojisola
    Mojisola Posts: 35,571 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Jeronim0 wrote: »
    Thanks for the quick reply. I'm now in my forties and have no plans to start a family so I can't see that being an issue. I must admit it would be lovely for us all to be mortgage free as if we were to buy our own property as we origionally intended it would mean getting another mortgage. She has said that once we have paid her mortgage off she would sign over the title deeds to us.

    It might be better for you to become joint owners.

    I suppose what worries me is if she ever had to go into care. Would this still be her estate?

    Giving away capital can be a problem if she needs residential care - google 'deprivation of assets'. If she's fit and well now and any potential care is many years away, it won't be so much of an issue.

    She is also still married to my dad although separated a very long time. Would he have a claim on the property?

    If your mother hasn't made a will leaving her estate to you, her husband will inherit the first £250k and half of whatever is left. You will inherit the other half of whatever is left.

    You need to think ahead and consider a range of situations. What if you died before she did - would she end up homeless or living with your husband and his new partner?

    What would happen if you and your husband split up?

    What if one of you got a dream job in another part of the country - would she be happy to move with you?
  • DT12
    DT12 Posts: 65 Forumite
    Also consider that in her old age your mother may require more care, the cost of which can be taken from her assets (the house).

    You may have the intention of providing care for your mother, but you should also consider the full practical implications of this, including that it may not be possible for you to do this depending on circumstance of both yourself and your mother etc.
  • Thanks all! You've given me a lot to think about.

    They were married and had a joint mortgage. When they separated everything was signed over to her so it's only her name on the existing mortgage. She's 62 and does have a will. She will not divorce for religious reasons.
  • pmlindyloo
    pmlindyloo Posts: 13,073 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    I know everyone is different and living with parent(s) as one extended family works for many people but please make sure you really think this through.

    The thought of not having a mortgage and having some spare money can easily make you oblivious to other things (no offence intended)

    Living with someone who is 62 years old and healthy is a totally different proposition to someone who is in their 80s and not so healthy.
    Are you prepared to be carers later on?

    The other thing to consider is why your mum is suggesting this? 62 years old and healthy is young these days. I'm older and still considering moving abroad or to a different part of the country or travelling extensively - so much more to do. Would she be better off downsizing if maintenance of the house is a problem/worry. Does she need some spare cash to live a comfortable life?

    Is your mum lonely? Will she regret 'giving away' her home and becoming a lodger? I'm sure you won't make her feel this way but that's the reality of the situation.

    Is she worried about losing her home if she needs care? Is that the real reason for this suggestion? If it is, then there is still time for her to get a property trust set up as part of her estate planning. Help her look into this.

    Just feel that you need to find out the real reason she wants to do this and then consider all the things mentioned so far.
  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    If you pay off the debt and buy that share it is yours and there is no giving away any asset so deprivation on that bit is not an issue.
  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    Having had this arrangment in our family it really helps if the house is big enough to have yoor own space.

    Having two living rooms worked well enough for the family situation we had, but if there had only been one it would have been a problem quite quickly
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