Large loan needed

polgara

I was in the process of buying a flat for my Mum to move into and the plan was that she would sell her house and she'd pay off the mortgage at some point. Cue lots of hassle and very few viewing on her house so 4 months down the line she has decided that she is staying put. However, the house will need renovating if she is to stay there and be safe - ie the bathroom needs to be completing redesigned and the bath removed and a walk in shower installed.

She is now convinced an equity release is the only way to go but looking at the figures as she wants to release £40k that would mean approximately leaving 25% equity which I know she will baulk at. My brother and I don't care about having an inheritance but I know she wants to leave something for my niece/nephew.

I have tried to suggest that I can finance the renovations (just means our own renovations/Australia holiday will have to wait) but again she doesn't want to do that either. We seem to be at an impasse!

Is there any larger loans available, either for her (Pensioner) or me? Or any other ideas?

ViolaLass

How would she pay the loan off (if in her name)?

If it were to be in your name, this wouldn't be any different to using your savings (and more expensive, most probably) so surely she wouldn't like that option either.

Enterprise_1701C

Of course the big question in this is how old is your mum?

TrickyDicky101

How much is the property worth and does it still have an outstanding mortgage on it.

Given the rather limited details you have provided, it doesn't sound to me like she will be able to source any equity release/remortgage products.

Why doesn't she let you finance it but call it a loan (with or without interest depending on your preference)?

dawyldthing

The other thing is it things that desperately need doing or could it done bit by bit? Like the bath you can get a bath chair to put over to act as a shower. You can get cheaper chairs from lloyds and the like if it's recliner chairs she needs. It just seems a lot of money needed if it can be done but by bit

National_Debtline

Hi polgara


Have you discussed her requirements with her local authority? While the old system of Community Care Grants no longer exists (except in N Ire), councils are still expected to have some provision for helping vulnerable people to stay in their homes and this could include grants/loans to fund essential renovations, subject to criteria.


What is available and eligibility rules will vary from council to council.


Dennis
@natdebtline