First time buyers wanting to purchase Mum's house so she can live with us

acebanditcat

Hi,

Looking for a bit of advice really.

But first a bit of background info.

My boyfriends Mum currently owns a home worth £200k.
She has had equity release in this which currently stands at £80,000.
She has 4 sons. All but 2 live at home. This includes my boyfriend and myself.
The family do not want the house to go when their Mum passes on and it has been suggested that my boyfriend and I buy it and she and one of my boyfriends brothers live with us.
They all want to right off their claims to the property and just my boyfriend and I to have it. She wishes to sell it to us for £100k as this we can afford.

There has been many family meetings about this and this has all been agreed. We have spoken to a solicitor who also says we can do this. The equity release firm also state the can be paid off early.

However I jut phoned two banks who have told me that if she sells
us the house she has to move out. If not they cannot look to give us a mortgage.

So my queries are..

Where do we go now?
Has anyone done this before?
Is this a bad idea and are we better off buying our own place?
If we are able to do this do we still need a 10% minimum deposit (currently have £5k)
Does it also complicate things as his brother is also here (He's 35 and a student)

Many thanks in advance for any information given.

amnblog

This can be done in theory but you are looking in the wrong place.


You may need a 5% cash deposit.

You could phone lenders from now until Christmas Day and still not find the right one.


Engage a mortgage broker.

Let_Us_See

Mortgage wise it should certainly be possible. However, do you want to live with your boyfriend's mother and brother for the rest of your lives? Why are the other three brothers willing to right off any claim on their mother's estate?

Andypandyboy

In the words of the song: There may be trouble ahead!!

Think long and hard about this..........

acebanditcat

Yes happy living as we are. She is 75 so we will be her main carer.
His brother is just finishing uni and has got a job near us so doesn't wish to move as yet until he has the finances.
The two other sons are in their 50s married with children and live in rented accommodation. They wouldnt want to live here

acebanditcat

It's been discussed thoroughly for the last year. The sons don't want any money out of he house as the equity realease was done for money to be given to them years ago

Senior_Paper_Monitor

May be doable BUT it will need an experienced broker to put together a comprehensive plan and 'sell' the idea to a highly flexible lender.


There will be some not inconsiderable legal fees picked up in the process.


This one is very easy to be condemned to the 'too difficult box'.

bryanb

If she has to go into care in the future, the Local authority will want to know where the £100k from the house sale went (assuming she doesn't have it at the time)
This is if she needs LA funding of course.

antrobus

bryanb wrote: »

If she has to go into care in the future, the Local authority will want to know where the £100k from the house sale went (assuming she doesn't have it at the time)
This is if she needs LA funding of course.

The LA may well want to know where the £100k went. They may well ask where the £100k went. If the aged parent is still compos mentis she may even be able to tell them. But if it ain't there any more, it ain't there, and there would be sod all they could do about it.:)

Thrugelmir

acebanditcat wrote: »

The family do not want the house to go when their Mum passes on

Putting sentiment aside. What's the rationale behind this thinking?

acebanditcat

Well the house was in the family before his mum and dad bought it. They would just prefer it if it was sold to us and then we look after her.
we all get on well, she's like a mom and best friend to me.
In the long term I guess the idea is that once we go it's passed on to my boyfriends son.