Buying aunties share of Grandmas Home

teddysmum

People are referring to the fact that 'mum' giving away her share would be considered to still own the property, should she need money for care. There's no problem if she has sufficient other resources to cover these costs.

Somerset

G_M wrote: »

This does not sound like grandma's house at all. If mum owns 50%, and auntie owns 50%, how much does grandma own? My maths is not very good.

I'm guessing it was grandma's house. Grandma died and left it to her two daughters, hence mum and auntie.

G_M

Wow! I never thought of that!

xylophone

Why not get a market valuation, approach your aunt and, if she is content to sell, borrow as much as your mortgage provider is willing to advance and pay both parties fair value.

They will probably both have some CGT to pay but after that, what your mother chooses to do with the cash is up to her.

With regard to DoA, this does not seem to me a pressing concern - your mother is only in her fifties, presumably in good health and with a house of her own/other assets - it is not as if she is 80, unwell, and imminently in need of care.

moosel

xylophone wrote: »

Why not get a market valuation, approach your aunt and, if she is content to sell, borrow as much as your mortgage provider is willing to advance and pay both parties fair value.

They will probably both have some CGT to pay but after that, what your mother chooses to do with the cash is up to her.

With regard to DoA, this does not seem to me a pressing concern - your mother is only in her fifties, presumably in good health and with a house of her own/other assets - it is not as if she is 80, unwell, and imminently in need of care.

This sounds perfect and just what we want to do. Yes mums fine (fitter than me) and does have other means of care if something did happen... and isnt a ploy to get out of paying for care.

Sorry for the confusion, it WAS my grandmas house. She died and we still all call it grandmas house out of habit. It is owned jointly by grandmas daughters (mum and aunt)

The 'agreement' is/was more to help my mum and auntie get rid of the house. I was going there on weekends to help decorate and eventually when my tenancy ended where I was staying it just made sense to move and I've continued doing the work myself.

Thanks for your responses, sorry if i've come across as a bit of a tool.

G_M

moosel wrote: »

....

Sorry for the confusion, it WAS my grandmas house. She died and we still all call it grandmas house out of habit. It is owned jointly by grandmas daughters (mum and aunt)
Not confusing at all. I knew that really :whistle:

The 'agreement' is/was more to help my mum and auntie get rid of the house. I was going there on weekends to help decorate and eventually when my tenancy ended where I was staying it just made sense to move and I've continued doing the work myself.
I'm afraid that alters nothing.
* you are receiving a home to live in.
* you are providing services of a cash value to the owners
* you are a tenant and they are your landlords.

Thanks for your responses, sorry if i've come across as a bit of a tool.

Tools can be useful. :blushing:

Iamdave

Why not get the house valued by 3 local estate agents, take the average and bring this to your aunt.

So if the house is valued at £60k you get a mortgage for £30k to pay off your aunt her share.

As for the rent free time youve been living there in exchange for doing home improvements i'd imagine you've added value (can discuss this figure with agents when they value the place) That way you can point out to Aunt that you've added £x in value since you've moved in by adding the new kitchen, rewiring etc. That's her rental return then.

Not forgetting that with future improvement that are left too do you are going to further add tot he value of the house so in a few years time when you come to remortgage your LTV should be much bigger and you've only had to take out an original 50% liability because of your gifted share so it is fair and proper to offer your aunt 50% of the average valuations from 3 estate agents imo.