Mothe-in-Laws income for mortgage

Thrugelmir

lisajreed wrote: »

I have just briefly read some info on deprivation of assets and it shouldn't apply, she is in good health and currently on a month long holiday in Australia so there is no question that she is disposing of assets in order to avoid paying care costs.

This is long term decision. Far longer than a month. In fact it's years. The legal document will in fact make it very clear whose money it is.

lisajreed

Can anyone answer my question:


My sister-in-law has been persuaded by the mortgage advisor that this is to my mother-in-laws advantage. I'm arguing that it can't possibly be advantageous to her to get into debt but don't want to get the blame if the purchase falls through because I'm holding things up. Putting the issue of the gifted money aside am I right to be concerned?

Mojisola

lisajreed wrote: »

Can anyone answer my question:

My sister-in-law has been persuaded by the mortgage advisor that this is to my mother-in-laws advantage. I'm arguing that it can't possibly be advantageous to her to get into debt but don't want to get the blame if the purchase falls through because I'm holding things up. Putting the issue of the gifted money aside am I right to be concerned?

Yes, you're right to be concerned. Your MIL is giving away her capital but taking on a huge debt. How can that be to her advantage?

cte1111

She will be a part owner of the property, so that could well be seen as an advantage. If she is not on the mortgage, it is unlikely that she will be able to be on the deeds and would therefore have no security. However the downside is that all parties to the mortgage are jointly and severally liable for the debt, so any one of the three will be pursued, if the payments are not kept up.

themull1

why doesn't she buy a small flat for herself, give some of her proceeds away if she feels she has to, and leave the flat to the three kids when she dies?

Thrugelmir

lisajreed wrote: »

Putting the issue of the gifted money aside am I right to be concerned?

Yes.

You need to consider all possibilities. What if the SIL and husband divorce?

Mojisola

lisajreed wrote: »

My sister-in-law has been persuaded by the mortgage advisor that this is to my mother-in-laws advantage.

Get the mortgage advisor to put the reasons in writing why it would be advantageous for your MIL.

Foxy-Stoat_3

cte1111 wrote: »

She will be a part owner of the property, so that could well be seen as an advantage. If she is not on the mortgage, it is unlikely that she will be able to be on the deeds and would therefore have no security. However the downside is that all parties to the mortgage are jointly and severally liable for the debt, so any one of the three will be pursued, if the payments are not kept up.

I would totally agree that it would be an advantage for the Mother in Law...................APART FROM THE FACT THAT SHE IS ABOUT TO GIVE AWAY £270,000.........I am not a financial or mortgage adviser but you would be an idiot if by giving away 6 figures and getting into debt to be PART owner of a property at a pensionable age is a good idea, when the other co-owner is one of the people I just gave £90,000 cash to.

Or have I just missed the point completely.

cte1111

From what the OP says, her MIL is giving the money away anyhow. I was just trying to explain why it might be reported as an advantage to be on the mortgage and therefore deeds.