Buying living parents house with Buy-To-Let mortgage

Argghhh

when i had an interest only mortgage 20 yrs ago i had to have a "vehicle" or means to pay it back at the end of the term along with life insurance cover on a decreasing term (these were minimum requirements)
Why has your father a) not got a means to pay the mortgage or most of it at least
b) life cover that covers illnesses such as what your mother is suffering from?
have they checked these out?

dack_2

antenna:

No, my father doesn't have money to pay off the mortgage or I wouldn't be here asking for this advice. He built the house from the ground up and for whatever reasons, possibly underestimating the work involved, unforeseen expense etc. it has taken several years longer than expected. I'm sure he realises he should have addressed the looming mortgage expiry sooner and as I explained above my mother's illness has prevented him from working much in the last year. Dementia often goes unnoticed in the early stages as lots of elderly people are forgetful and such, but in my mother's case it seems to have been exacerbated when she had an operation requiring general anaesthetic. No one noticed anything unusual until after the operation (this is not uncommon apparently) and even now the doctor's are unable to offer a firm diagnosis as she has excelled all memory tests, yet her confusion and wildly misplaced anxieties are obvious. There is no attempt to deliberately transfer assets to avoid paying for possible future care home fees or whatever, I can guarantee that such a thought hasn't crossed his mind, he probably isn't even familiar with the rules surrounding such things.


Cornucopia:

What little I have read on the subject of deprivation of assets suggests that the act must be deliberate, though it doesn't necessarily mean it's OK under circumstances such as these. That said, since reading the posts above I don't see this as an issue now as there would be no gifting if I have no hope of getting a mortgage.


Argghhh:

Regarding a repayment vehicle I'm simply not sure. I believe his intention was to finish the house and sell it for a profit a few years ago. Perhaps the mortgage requirements for a self build are different to a typical interest only mortgage, meaning that selling the property was considered enough assurance that the repayment had been considered.

xylophone

If it is that important to finish the drive, can you and your siblings pay for this to be done and then put the house on sale?

In view of your mother's condition, have you looked into local authority sheltered housing for your parents?

dack_2

xylophone, to be honest there is so much going on at the moment that it's easy for me to get fixated on a particular solution without considering other options and local authority housing is not something I thought would be an option, I'll look into it. I am also trying to figure out how we can help get the drive finished. Thank you for the suggestion.

bris

Depravation of assets would certainly come into play given the mothers condition. There is £135k that can't just be given away without recourse down the line.