Charge placed on a property

Mrs_bouquet_2

I am giving money to my mum to purchase her council house so she owns it outright without a mortgage and want something in place to protect my money incase of any debt recoveries or death but not sure what and how?

Daniel54

Mrs_bouquet wrote: »

I am giving money to my mum to purchase her council house so she owns it outright without a mortgage and want something in place to protect my money incase of any debt recoveries or death but not sure what and how?

As it's a gift without reservation to your mother,it will no longer be your money and you have nothing to protect.

She can leave the property to you in her will if she chooses,or to the local cats' home.That will be her decision.

harrys_dad

Sheesh, yet another thread where someone wants to benefit from a relative's entitlement to right to buy discounts and then "protect their money". It is a GIFT, as stated above. How old is your mum? Is she likely to need residential care later in life? Does she currently have debts? How will she afford maintenance costs? Does she claim benefits?

Foxy-Stoat_3

Best way to protect your money is to leave it in your bank.

No need to thank me !

xylophone

If it is a gift then it is no longer your money to protect.

You might explore lending your mother the money assuming that she will not be seeking a mortgage and that the LA would not object.

The loan could be set up as repayable on sale of the house?

You and your mother would need to consult a solicitor to discuss the pros and cons, particularly if your intention would be to charge interest (or rolled up interest, or an index linking clause) and you would wish to make yourself aware of tax implications.

Pixie5740

What has prompted this? Is your mother owning her council home using a very generous gift from you any more secure than her continuing with her secure tenancy? I very much doubt it. Care home fees, means tested benefits, maintenance costs are just a couple of things that spring to mind.

xylophone

Care home fees, means tested benefits, maintenance costs are just a couple of things that spring to mind.

The house would certainly need to be maintained. I don't think that owning your home would necessarily impact on means tested benefits?

Mother would own the home (through a form of private mortgage, if you will), so would have security of tenure?

If the money were lent, if mother needed to go into care so that the house had to be sold, the OP would at the least be due the repayment of the original loan, and possibly rolled up interest etc, depending on the terms of the loan?

Yorkie1

Surely, if money is gifted to the mum, she has to declare that gift to the means-testing people, because she has then chosen to deprive herself of that asset in order to buy a property?

dancingfairy

O.k so if you gift her money to buy a house then she owns a house. When it comes to care home fees etc surely she would then be assessed as owning her own home (or am I missing something)?
df

G_M

Clearly Mrs bouquet does not want to gift the money.

She wishes to loan the money.

That is why she "want something in place to protect my money".

See a solicitor, draw up a loan agreement repayable
* after x years?
* from the Estate on death?
* at any time on providing 1 (or 3/whatever) months notice

with or without interest at x% (or based on Bank Of England base rate etc)

and get a Charge placed on the property in your name.