Helping mother rejoin the property market

TheBlueVoice · 12 December 2014 at 1:46PM

Hi,

After my parents splitting recently my mother would like to buy a new place using the proceeds from the sale of the previous home as deposit.

Unfortunately, she will not have enough to purchase outright comfortably. Whilst she could just about afford the repayments on her own, this would not leave her a lot to enjoy her retirement. Oh yes, she's retired to complicate matters further.

Ignoring the exact details of splitting the property on her death for the moment, would it be possible for me to pay an equal amount for deposit and also mortgage repayments etc with only her living there? I assume a joint mortgage? Name on deeds?

Do lenders allow this role reversal of the usual parent helping child get onto property ladder?

Obviously the mortgage would have to be over a much shorter term than usual too, say 10 years.

She is 67 - does this make her too old anyway?

I would be able to afford the whole mortgage on my own easily if required during the next 3 years. After that time my mortgage finishes.

Is there a better way of her having her own place?

Thanks!

TheBlueVoice · 16 December 2014 at 9:46AM

Anyone have an alternative?

zaax · 16 December 2014 at 9:59AM

I doubt she will get a mortgage. Buy a one bed retirement flat?

Senior_Paper_Monitor · 16 December 2014 at 10:09AM

There are potentially a number of ways to do this if the circumstances are as you describe (I am a little worried by the '3 years' proviso) - probably won't be on the 'High Street', or at lowest 'High Street' prices (although I can think of one possibility) but an experienced broker should be able to sort it.

kingstreet · 16 December 2014 at 10:10AM

The answers to the questions are all "possibly" and "maybe" so the best thing you can do is talk to a recommended independent mortgage broker and establish the circumstances and what can and can't be done.