Mortgage remortgage or sell ? Please help

albionkev

Hello I'm a newbie :j
I'm just not sure which way to go
I have a flat that i would prefer to keep, at least in the short term. I owe about £13k on the flat (Value £125k)
I also owe about 6k in loans credit cards etc.
I live with my disabled parent now to help with care.
I want to buy my parents house to be able to adapt it for their needs.
The housing association want £106k for my parents house which i can just about afford.
I don't know what to do !
Should i

A. Get a loan for £20k to pay off the flat and the debts and have one monthly payment. Then get a Mortgage on the parents house?

B.Get a buy to let mortgage on the flat and a separate mortgage on the parents house?

C.Continue paying the mortgage on the flat and repay debts while getting a second mortgage on the parents house?

D. Get one mortgage for both properties?

I cannot remortgage the flat to buy the house because it's no longer my main residence.

Any other suggestions would be greatly appreciated

Kindest Regards
albionkev

AdrianC

You say that your parents place is currently owned by a Housing Association - so is this some kind of RTB deal?

If so, can YOU buy it? Or would they have to?
If the answer is "them", then you would have to gift them the money, presumably raised by mortgaging your current property.

You would also need to consider that your parents would be much less secure in the property than they currently are - if you get further into debt, they may be left homeless when the property's repossessed.

Even then, I'm not sure you can afford it, given your current debt, and you certainly won't have much left for the adaptation. Will the HA not make any necessary adaptations?

Crashy_Time

HA/council should make adaptations? Don`t know why you would want more debt TBH. make slight over-payments on your mortgage if you want, but clear the higher interest rate debt first.

Cakeguts

You need to contact social services to find out how to go about getting adaptions for a disabled person. Depending on what is causing the parent to be disabled you will need help with lifting etc. If it is something where the person becomes more disabled with time they will need to go into residential care eventually because they will need 24 hour care. If they/you buy the house they are now in that will have to be sold to pay for the care so it is better for them not to buy the house.

Don't sell your flat you will need to move back there eventually.

albionkev

Thank you
Yes it is a RTB deal and yes i can buy it jointly with my parent(we would both be on the mortgage and i would guarantee the payments)
Yes there is always a risk when a mortgage is taken on , however i still have equity in the flat and i could and would sell that to pay the mortgage off if i lost my job or such like so we consider the risk of repossession to be fairly low.
I can afford it , just about. My parent has the money for adaptations.
No , unfortunately housing association won't make adaptations, even after social services intervention and after months of waiting we have just been offered alternative disabled accommodation. My parents been in the house for 40 plus years so a move is out of the question.

Pixie5740

albionkev wrote: »

A. Get a loan for £20k to pay off the flat and the debts and have one monthly payment. Then get a Mortgage on the parents house?

I've never understood the fascination by those consolidating debts to have one payment. Consolidating the £13k mortgage and £6k credit cards is only worth it if it works out less expensive.

Have you tried something like the MSE Loans Eligibility Calculator to see if you're likely to be able to borrow £19k?

albionkev wrote: »

B.Get a buy to let mortgage on the flat and a separate mortgage on the parents house?

Unless you want to release equity from your current home I wouldn't necessarily go getting a Let-to-Buy mortgage. Ask your current mortgage lender for consent to let.

How old are your parents? Their ages will impact the term of RTB mortgage you can get which in turns impacts your affordability.

A mortgage broker is your best bet.

albionkev wrote: »

C.Continue paying the mortgage on the flat and repay debts while getting a second mortgage on the parents house?

Depends on what is the cheapest way to do it. See comments above regarding your parents and the mortgage for their home.

albionkev wrote: »

D. Get one mortgage for both properties?

No, each property would need its own mortgage.

albionkev wrote: »

I cannot remortgage the flat to buy the house because it's no longer my main residence.

Are you already letting your flat out then? You should already have consent to let from your lender in that case which goes back to my comments on Case B.

I don't know how owning a property already will affect your ability to RTB your parents home, you'd need to check.

Are you full time carer for your parents or are you in employment?

Cakeguts

albionkev wrote: »

Thank you
Yes it is a RTB deal and yes i can buy it jointly with my parent(we would both be on the mortgage and i would guarantee the payments)
Yes there is always a risk when a mortgage is taken on , however i still have equity in the flat and i could and would sell that to pay the mortgage off if i lost my job or such like so we consider the risk of repossession to be fairly low.
I can afford it , just about. My parent has the money for adaptations.
No , unfortunately housing association won't make adaptations, even after social services intervention and after months of waiting we have just been offered alternative disabled accommodation. My parents been in the house for 40 plus years so a move is out of the question.

Persuade your parents to take the disabled accommodation. Moving after 40 years is no hardship. Lots of people downsize from family homes.

The disabled accommodation will give the disabled parent more chance of a normal life than any adaptations that you put into the current house.

The reason why it took months for you to be offered disabled accommodation is because there isn't very much available. Your parents are extremely lucky to be offered this and they should take up the opportunity. Remember both your parents may suffer mobility problems so disabled accommodation is really the best option.

albionkev

Cakeguts wrote: »

Persuade your parents to take the disabled accommodation. Moving after 40 years is no hardship. Lots of people downsize from family homes.

The disabled accommodation will give the disabled parent more chance of a normal life than any adaptations that you put into the current house.

The reason why it took months for you to be offered disabled accommodation is because there isn't very much available. Your parents are extremely lucky to be offered this and they should take up the opportunity. Remember both your parents may suffer mobility problems so disabled accommodation is really the best option.

Thank you !
I know it can be no big deal for some but with the loss of children and the living livestock(that could not be accommodated) its just too much to get the head around

I know this may sound ungrateful but it's only a matter of a wheelchair ramp, a shower room and a combi boiler* (which would not be an option in a new house*) . Alternative accommodation was not asked for its was offered to get us out because its not the "housing associations policy" to adapt homes (although we have seen other houses in the street adapted to accommodate mobility issues and other adaptations are planned in other houses) Its a curious situation that we find ourselves in but here we are. I agree that it would probably be easier all round to move to a disabled bungalow but it's not my decision and i have tried persuasion.

Cheeky_Monkey

Why do I get the impression that persuading the OP's parent to accept the disabled accommodation they have been offered is not part of the OP's 'plan'

AdrianC

albionkev wrote: »

Alternative accommodation was not asked for its was offered to get us out because its not the "housing associations policy" to adapt homes

Look at it from the HA's angle.

They have adapted properties. You need an adapted property.
They have people wanting un-adapted properties. You are in an un-adapted property.

What should they do? Adapt your property, while puting people who don't need the adaptations into another adapted one...? Not exactly a great use of limited resources, is it?

Cakeguts

albionkev wrote: »

Thank you !
I know it can be no big deal for some but with the loss of children and the living livestock(that could not be accommodated) its just too much to get the head around

I know this may sound ungrateful but it's only a matter of a wheelchair ramp, a shower room and a combi boiler* (which would not be an option in a new house*) . Alternative accommodation was not asked for its was offered to get us out because its not the "housing associations policy" to adapt homes (although we have seen other houses in the street adapted to accommodate mobility issues and other adaptations are planned in other houses) Its a curious situation that we find ourselves in but here we are. I agree that it would probably be easier all round to move to a disabled bungalow but it's not my decision and i have tried persuasion.

I don't understand what you mean about a new house? Disabled accommodation is already adapted for a disabled person that is why it has been offered to your parents. Disabled accommodation is offered to meet the needs of the disabled person. This means that the best solution for your parents is to accept the disabled accommodation.

The housing association have already said that they will not adapt the house that your parents live in.

Buying it does not help the situation. If your parents cannot afford to buy it on their own then do not offer to help them out. You would not be helping them in the long run if you did this you would just make it much more difficult for them to ever access disabled accommodation.

The point is that as long as they remain housing association tenants they are guaranteed to be able to access housing that meets their needs. As private owners this would mean that any disabled housing would have to be paid for by them and if they had to go into residential care because the right kind of disabled housing was not available in the private sector the house they live in would have to be sold to pay for it.

As you say this is not your decision but you need to make sure that anything that you do does not encourage them to think that staying in the house that they live in is the best option for them. It isn't.