mum to sell house to raise cash for kidss

SazJ

Hi all I'm new here wonder if anyone can help, not even sure I'm posting this in the right category.

My mum owns her house outright and lives with her partner in his home. My brother has been living in my mums house rent free for the last however many years. I have a family and am currently renting. I have some credit cards which eat up my disposable income and I'm not in a position to save for a deposit to buy.

I would like to get some cash out of my mums house now so I can pay off the cards and buy my own place. We were considering selling it but this means brother has to find somewhere else to live. So trying to find a way for him to stay there and release cash for me. Ie can mum gift the property to us and he buy me out by getting a mortgage? What are the implications for my mum. She is 62. The house is only worth around 75k.

Any advice much appreciated.
Thanks
Saz

kazwookie

SazJ wrote: »

Hi all I'm new here wonder if anyone can help, not even sure I'm posting this in the right category.

My mum owns her house outright and lives with her partner in his home. My brother has been living in my mums house rent free for the last however many years. I have a family and am currently renting. I have some credit cards which eat up my disposable income and I'm not in a position to save for a deposit to buy.

I would like to get some cash out of my mums house now so I can pay off the cards and buy my own place. We were considering selling it but this means brother has to find somewhere else to live. So trying to find a way for him to stay there and release cash for me. Ie can mum gift the property to us and he buy me out by getting a mortgage? What are the implications for my mum. She is 62. The house is only worth around 75k.

Any advice much appreciated.
Thanks
Saz

Why not sort out your debit with the debt free boards, post up a statement of affairs and see what can be done.

Why does your brother not pay his way ie rent.?

What are your mothers long terms plans for the house?

anselld

SazJ wrote: »

I have some credit cards which eat up my disposable income and I'm not in a position to save for a deposit to buy.

You mean you have spent more than your disposable income for some considerable time!

Your Mum could gift the property (if she wants to). There would be implications if she ever needs to claim benefits or care costs; look up "deprivation of capital".

There are potential implications if she ever splits with her partner.

There are possibly IHT implications if she dies within 7 years.

There may be CGT implications on transfer depending on how long it has not been her principal residence.

Enterprise_1701C

Surely it would be fairer for your brother start paying rent?

mumps

SazJ wrote: »

I would like to get some cash out of my mums house now so I can pay off the cards and buy my own place.
Saz

And what does mum want? Do you realise how awful that sounds. Its not your house, you do realise that you don't have any rights to "get some cash out of my mums house."

What is going to happen to mum if her relationship breaks down and she needs somewhere to live? What is going to happen if her partner dies before her and he leaves his house to someone else and she needs somewhere to live?

Annisele

Can your brother actually get a mortgage? Your Mum has let him stay rent free in her house for years - is that because his income isn't high enough to let him pay rent? If that's the case, he's unlikely to get a mortgage.

[Deleted User]

I hope you, your mum and your brother will stop a think for a bit. Realising that you have to budget, and pay things off., stop paying for things you can't afford, find other ways to get things you can afford (like freecycle, charity shops etc) is a better way to manage your finances.

Although you may not see it, your mum selling her house to anyone is the worst thing she could do for her and both of you. She's created entitled children..,and you do need to be a bit more self reliant.

Please, look to yourself to solve the financial management problems you have. It will be far more beneficial to you in the long run. And won't leave your mum at risk of homelessness if your brother by some miracle could buy the house.

Its really a bad idea whichever way its looked at. Its your mum's house, not yours, and viewing it as a cash cow for you is not really very nice for your mother. Its kindof like jumping on her grave.., and she's not dead.

TBagpuss

You mum would put herself in a very vulnerable position if she were to sell or give away her house. You talk about her partner - presumably this means she is not married to him? If that is the case, then she will not have any automatic rights if she separates from her partner, or in the event of his death.

If she becomes ill and needs residential care then she may need the value of the house to allow her choice in where and how she is cared for.

Does your brother pay rent? If not, why not? If he is not paying because he is not working then your mum might be better off if she were to rent the property out commercially and (if she wants) make you or your brother a gift of part of the rent.

In terms of your own situation - would your mum be willing for you move temporarily into your mum's house to allow you to save on rent while you focus on managing your debts? If your mum would be willing to let you stay there rent free or at a blow market rent then, combined with some budgeting you should be able to start to pay off your credit cars, and start moving to a point where you can begin to save.

It would be possible for your mum to give the property to you and your brother - you would all three of you need to get separate legal advice to ensure that it was absolutely clear what happens if your brother cannot buy you out, but honestly, I think you need to think again about the risk to your mum of going down this line.
At 62 your mum is not old - it's reasonable to assume that she has another 20 years or more ahead of her - it seems incredibly risky for her to assume that she will not need a home, or any of her life-savings at any point in the next 20-30 years.

fairy_lights

if your credit card debts are stopping you from saving up a deposit, the chances are they will affect your ability to get a mortgage too.

Rosetinted

SazJ wrote: »

I have some credit cards which eat up my disposable income and I'm not in a position to save for a deposit to buy.

By this I assume you mean that you have credit card debts? As another poster mentioned, the only way to accrue these debts is to spend more than you can afford and then not be able to pay off the balance. This doesn't make you a very appealing mortgage candidate, to be honest.

You need to work on your budgeting and try to siphon off enough of your income to start paying off the debts, rather than simply paying the minimum balance each month (which I assume is what you are currently doing). You said you have a family, so can't you involve your partner in helping pay off and get rid of the cards? After all, you would all benefit from sorting out the situation and eventually buying a home.

SazJ wrote: »

I would like to get some cash out of my mums house now so I can pay off the cards and buy my own place.

What does your mum want? I'm not really understanding why you feel (a) that your debts are anything to do with her and (b) that the only way to be rid of them is through selling her house.

I sympathise with the challenge of trying to save for a deposit while renting, but there is no quick fix. I've been doing it for the last five years and it's a long slog. I had to very carefully go through all my spending and figure out where savings could be made. Have you done the same? Your post gives the impression you just want someone to bail you out, but haven't necessarily done enough to help yourself out of the situation.

SazJ wrote: »

We were considering selling it but this means brother has to find somewhere else to live. So trying to find a way for him to stay there and release cash for me. Ie can mum gift the property to us and he buy me out by getting a mortgage? What are the implications for my mum. She is 62. The house is only worth around 75k.

Have you considered what your mum and her partner will do? Currently it's sounding like you want to turf three people out of their home so that you can get one of your own. Sure, this would be advantageous for you, but what about the others involved?

My mum's the same age as yours and planning to retire soon and it's a bit of a scary time anyway for her. Going into your older years, you should (hopefully) be reaping the benefits of having worked hard, paid off your mortgage, earned a pension and created some security for yourself. Never mind 10, 20 years down the line when you might need every penny from your home for specialist care. My opinion is that you should find an alternative way of doing things that doesn't take that away from her.

ReadingTim

The best option is to make sure your mother has left you the house in her will then kill her. Eating the body will dispose of the evidence and save you money on food bills, allowing you to repay the credit card(s).

Suggest you keep this idea from any kids you have. You wouldn't want them eyeing up your house in the future...