Funding the building a granny annexe

lathyrus

My 87 year old mother moved counties a couple of years ago to live next door to me, so this achieved a comfortable level of support for her. However she now needs more appropriate level accommodation. I am building a new house next door for myself, and have offered her the opportunity of bespoke self contained accommodation within the design. This could include shared ownership when we formalise the land registration (its a back garden development). Her 'share' would be about 20% if we did this. She would need to raise a minimum of £50k to pay for the extra building (but probably £70K). She has her house worth £250k to sell at the end of the process (no mortgage) and her income is £30k. Her house is her only asset and I have 4 siblings who I think will be co-operative as I take all the responsibility for their mother (yes - I know this may not be the case..). She could not sell her house until the new accommodation is ready, so I am guessing the loan would be for a year. I'd be most grateful for ideas out there regarding the best way to raise the money. By best I mean safest as well as cheapest!

foxy-stoat

Get your mother to release equity by bridging loan, not sure if income and age will be an issue.

How are you funding your development?

lathyrus

I will have equity from my house to get the new one weathertight ( so mine will have to be sold first - its mobile-home life for a year :-( and I will get a new mortgage to pay for the last part of the build.