We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Can we move into my mother in laws house and she move into ours?
Comments
-
Are you sure about that? Are you perhaps confusing IHT with deprivation of assets for avoiding care home fees?
I quite like MarkBargain's suggestion so try and see if that's a viable option.
It seems the OP is confused here. The 7 year gift rule only relates to Capital Gains Tax.
Local Authorities can, and will go back as far as they can to try and spot potential deprivation of assets. As the public finances are under pressure, this is something they are increasing hot on.0 -
MarkBargain wrote: »Can't you draw up a contract to buy the £400K house off her for an agreed lump sum plus instalments over say 30 years? That would allow her to buy a smaller house of her own, would get you the bigger house (legally yours) and it would give her an income for future years.
They'd need to find a mortgage lender willing to accept a loan payable to mum, rather than it being a gift (as well as presumably a security over the house to protect her interests). The brokers here may be able to advise further, but I suspect that restricts their options considerably.0 -
I may be wrong here, but wouldn't this arrangement mean that MiL is losing out quite significantly?
There doesn't seem to be any allowance given for the rent she currently receives from the large house. All other things being equal: I assume that the rental income from a large house will be significantly higher than a 2 bed semi in the same area. So surely the most financially prudent advice for the MiL would be to continue renting out her house and use some of the money from that to fund her own living arrangements thus giving her a place to live, her original asset (the house) and an additional income (the remainder of the rent).
Your suggested arrangement is good for you (living in a £400k+ house whilst only paying out for a £170k one) but impoverishes her.
SPCome on people, it's not difficult: lose means to be unable to find, loose means not being fixed in place. So if you have a hole in your pocket you might lose your loose change.0 -
Seems like Mum is losing a substantial rental income each month -does she have pensions or work so she'd not miss that income ?
What would happen to any arrangement if the OP divorced or Mum remarried ?
It sounds like the OH's husband is emotionally invested in the house -which could cause problems if Mum needs to sell the house later on to release capital - he can't afford to buy her out ......and doesn't want to move.
Honestly I can't see this is workableI Would Rather Climb A Mountain Than Crawl Into A Hole
MSE Florida wedding .....no problem0 -
If this is a large house, could you and your husband and his mother all live in it?
It could be adapted to give you all your privacy?
You would get permission to let your existing property and would reach a financial arrangement with your MIL.
If the arrangement didn't work out, then you would sell your own property and buy whatever you could afford in the area?0 -
obviously our aim is not to leave mother in law penniless! and this is by no means a way of getting out of paying nursing home fees.... she is very well and a long way off that!!
at the minute, yes she she is getting more than we could afford in rent from current tennants. But she is also living in a very expensive flat that now belongs to her ex. If she was living in a smaller property bought by us, rent free, she would only be paying bills so she could manage with the drop income. The whole idea of moving into her house was first suggested by her so i dont want people to think we are being unreasonable/bullying. Im just trying to find a way that we can stay on the property ladder whilst allowing her to still keep hold of her larger house as she has stated that she neither wants to live in it or sell it. yes she could conctinue to rent and we could buy something for our own budget which may ultimately end up happening if we can find a soloution but i think both her and my husband are keen to see it go to our families use with more children on the horizon etc.
We def need to seek legal advise. Just throwing ideas around at the moment :-)0 -
Brock_and_Roll wrote: »It seems the OP is confused here. The 7 year gift rule only relates to [STRIKE]Capital Gains Tax[/STRIKE]. IHT.
fixed that for you0 -
Looks like a need for IHT planning or a heafty tax bill is on the horizon.
How big is her estate? with a £400k house it is over the single nil rate band.
is there any transferable nilrate band available?0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.6K Banking & Borrowing
- 254.5K Reduce Debt & Boost Income
- 455.5K Spending & Discounts
- 247.5K Work, Benefits & Business
- 604.3K Mortgages, Homes & Bills
- 178.6K Life & Family
- 261.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards