Desperate need of help - Parents and Housing

OtleyDominic

Hi All,

I am not quite sure where this post should sit. However my parents (in their early 70s) have made poor financial decisions. They have £130k mortgage outstanding and interest only mortgage on a £460k house, no pension savings, refusal to take on state benefits to their entitlement. They are in very poor state of affairs and debt collectors knocking on their door, occasional court request letters etc.. The house is deteriorating slowing too. They are often asking family for financial assistance but will not let me help organise things.

Now here is the catch, despite all my efforts my dad will not put the house up for sale. They always have excuses and jobs to do before they put it for sale! They get rather angry and upset when I try and get estate agents in the door to even value it! To make things even worse my dad now talks of speaking with equity release companies!!!"! It seems they are determined to live the remainder of their lives struggling. Such a shame given how hard they have always worked.

I am close to resigning myself to let themselves just get on with it however sad it may be.

Does anyone have any advice? Any similar experiences? Any options available? It is rather embarrassing to put this on here, however I am somewhat at a loss.

ACG

Equity release would presumably enable them to clear their mortgage and other debts?

OK it doesnt allow them to pass on the family home but they clearly do not want to move out, so perhaps it is the right decision for them?

You could maybe look to do a regulated BTL and purchase the property from them for the mortgage outstanding and they pay you rent...if you want it?

mark55man

which benefits are they not claiming

OtleyDominic

Thank you for your responses. I might consider a BTL mortgage on their property but it would not free them up with money. Also, it may sound bad, but I could not be assured that they would pay a rental fee regularly.

On the benefits side, I am not clued up as to their entitlements however my dad seems too proud. He is not well in a number of ways or mobile, yet if asked he says he is perfectly fit and won't fill in assessment forms

mark55man

Could you look at Power of Attorney, then they would own everything, but you could do things on his behalf

OtleyDominic

I will ask as to Power of Attorney, but they still would not allow me to sell their property.

Also, on the equity release companies, are there any reputable ones?

mark55man

But you should be able to help them with their cashflow through benefits.

I also follow the forums on fool.co.uk The main site is a bit meh! but the forums (boards as they call them) are goldmine.

You might get some good advice both on PoA and on the general situation if you posted in their Legal Issues - Practical board

Thrugelmir

When does their mortgage term end?

OtleyDominic

I believe as it is interest only it is ongoing? Should it have an end of term ? It is one of those horrible outcomes from the endowment era that my dad just carried on as interest only with a number of cash releases

Thrugelmir

OtleyDominic wrote: »

I believe as it is interest only it is ongoing? Should it have an end of term ?

Yes, mortgages normally have a set term.

hcb42

PoA won't help. If Dad doesn't want advice, he certainly doesn't want anyone taking over his affairs I would think..