Can we buy parents house outright then let them live in it?

AdrianC

Mojisola wrote: »

If they give the mother £40k, I don't think it's unreasonable to expect that to be paid back when the house is sold.

If she can afford it, yes. when all her care etc has been paid for during her lifetime.

fed_up_and_stressed wrote: »

but reading the thread it seems the outcome the OP was after was for in essence the UK taxpayers to pay for their house repairs rather than M-I-L.

Ultimately, for the taxpayer to subsidise their inheritance, after any care she may require.

The question always come back to whether the priority is inheritance or M-i-L's lifetime needs...

Mojisola

Mojisola wrote: »

If they give the mother £40k, I don't think it's unreasonable to expect that to be paid back when the house is sold.

AdrianC wrote: »

If she can afford it, yes. when all her care etc has been paid for during her lifetime.

If the house had a £40k mortgage on it when she needed care, it would be sold, the mortgage repaid and the rest used to pay for her care.

If the mortgage had been paid off with a loan, that loan would have to be repaid when the house was sold in just the same way.

tlc678910

Hi OP,
I think you can achieve your aims for your mother in law to have more disposable income and your own upgrades much more simply.

Your question suggests that you think you will be able to borrow the money fairly easily against your mortgage to buy the property but will then borrow from that to do your renovations. Actually it is likely that you will be able to borrow for the renovations fairly easily (subject to the usual equity and affordability) but many lenders do not lend against existing mortgages for the purchase of property.

I suggest you borrow the money for your renovations against your property which should be pretty straightforward.

If you are able to borrow the money to pay off the 40K of your mother in laws mortgage why not pay that off and have a charge registered against the house for the equity. If you purchase less than 40K stake I believe there will be no stamp duty to pay though obviously you will take advice. This protects your capital in your MILs property but her share also remains her share and there will be no deprivation of assets issues in the future.

As you describe your partner as the sole beneficiary in an inheritance what is the rush for your MIL to need to sign over any equity? She will have an allowance to pass on of 325K without any inheritance tax payable or 650K if she was married and widowed and none of her husbands allowance was used (and it doesn't sound like she would be anywhere near these limits).

While your motive at the moment is to help your mother in law to lower her living expenses and to get your renovations done you can surely understand why people's replies become irritated if the plan for the future might be that you will be paid the housing benefit that your MIL claims from the taxpayer, after she has spent her capital, (of an amount that would exclude her from being eligible from housing benefit) doing up your property! Surely you get that?

Tlc

teddysmum

AdrianC wrote: »

Why on earth would you do that? Don't you trust her...?

The charge is a way of ensuring that the contribution made is repaid and not counted as part of the lady's estate, should she die or need care.

AdrianC

teddysmum wrote: »

The charge is a way of ensuring that the contribution made is repaid and not counted as part of the lady's estate, should she die or need care.

Precisely my point.

missbiggles1

Dan-Dan wrote: »

OP wont read all that,after all they know it all already

I didn't mean to post all that anyway, don't know what happened there.:o

Amber_Sunshine

If you ask for advice, then you should be prepared that it might not be what you want to hear.

If you're going to insult people for trying to help you, then don't be surprised if they then think it's not worth their time.

TheSilentMeow wrote: »

Thank you to the people who have answered my question as to whether it is legal or otherwise, and those who have offered advice. The rest of you are pretty pathetic coming along on your high horses. This is a money and business forum, I wasn't looking for agony aunts, particularly ones who love to pretend that they don't do all they can to help their offspring, which is all my MIL wanted to do. She's not an idiot, she's actually a very bright woman, who wants to help us, and her grandchildren, while she is alive. In turn she will save money every month, remain in her home and continue to have in maintained by us to a good standard. We are not dishonest people. We love our parents and want them to be happy and not have worries, they want the same for us, if your situations do not reflect this then I totally understand how you might be sceptical of our agenda, but really save your judgements for the real world, not someone looking for some advice on MSE!