Helping retired parents

kafmc

they live in a 2 up 2 down terrace, in the oldest part of our town, so I suppose they do yes (apart from areas I wouldn't want them to live in). It's a lovely area and sought after by first time buyers, but not big or expensive. We have a lot of social housing but they wouldn't obtain the points they needed to be prioritised over others who are more worthy of them.

xylophone

Is there nothing smaller and cheaper in their area - a one bedroom ground floor flat say?

Or had they looked into equity release?

Or could you and your siblings make them a loan and take a charge against their property?

Slithery

Could you not just loan them an amount of money every month, to be repaid from their estate upon death?

Robin9

Are they both pensioners ? You might like to check that they are getting the benefits to which they are entitled - pension credits etc ?

On the payments side - utilities, insurance.

Have you POA for them ?

Mardle

If they are already getting Pension Guarantee Credit that would be affected if they sold half their house to you as they would have over £10k in savings.

AnotherJoe

Good point, look at their benefits, check they are getting what they are due, and also what they might lose once they became the recipients of a large sum of money. Worst case, for every £1 you put into the house they lose a £1 in benefits, making it a zero sum exercise.

Possibly an arrangement whereby you loan them an amount every month, secured against the house, repayable from the estate or upon sale, might be better. That could be drawn up fairly simply and would ensure you could get your money back if the house had to be sold to fund care.

To keep with the investment theme you mentioned, i think there would only be an investment for you if the agreement tied the amount you were due back to house price rises or an agreed amount of rolled up interest.

Red-Squirrel_2

Can you remortgage your own house, and then lend them the cash with a charging order on their house so that you get it back eventually?

xylophone

To keep with the investment theme you mentioned, i think there would only be an investment for you if the agreement tied the amount you were due back to house price rises or an agreed amount of rolled up interest.

Be very careful of the tax consequences.

https://www.taxation.co.uk/articles/2010/05/12/20395/interesting-problem

https://www.taxation.co.uk/Articles/2013/09/18/313671/inflation-proof-loan

https://www.taxation.co.uk/Articles/2014/08/12/329201/property-purchase

Thrugelmir

kafmc wrote: »

Thanks, would it not be possible for all 3 to be on the mortgage but my income covering the mortgage affordability?

The lender has to factor in that your income may not be sufficient at some point in time. Your parents would need to demonstrate an ability to be self sufficient.

Why not simply lend them money on a monthly basis. With the interest rolling up. The debt being repaid upon the sale of the property.

On the basis that they leave you a share of their estate in their wills. Obtaining a mortgage to buy 50% as an investment doesn't seem logical. You'll benefit from any increase in the value of the property anyway. Without needing to borrow money and paying interest.

Why not simply lend them the money. With the interest rolling up. The debt being repaid upon the sale of the property. Have a formal agreement drafted up to avoid any complications or disputes.

McKneff

Why not get together with your sibling and slip them a few quid each month .

If the have no mortgage to pay i am struggling to see how they are cash poor.

At least 2 state pensions going in but only, say gas, leccy, food, phone, insurances going out.

Something isnt right