Parental Support to Reduce Mortgage Burden

alic6909

I am recently divorced and have a child who given the constant upheaval he has faced in his life is at least owed the stability of me retaining the family home for him. It is valued at approx. £230,000 and there is a 20% charge back to be paid to my ex upon sale (or other associated caveats in the settlement). Up until last year there was a strong possibility that I would gain a mortgage in my own right at 4 x income for the outstanding mortgage amount of £100,000. However I have since lost my job because of time supporting my son and given the current issues presented by him (ongoing hospital appointments, social and emotional difficulties etc.) it looks unlikely that I will be able to return to work full time and achieve the income necessary to do this.

BIg problem....but one potential solution in terms of my mother and any potential help she could offer. She owns her house outright (approx value £180,000) and has savings of maybe £50,000 (very unsure of that figure but did inherit £35,000+ just a few years ago. Is there any way she could put her house into my name to help reduce my burden? I'm not interested in savings or inheritence int the future but desperatley need help now otherwise I can only forsee that I will have to sell up. Too close to this situation to see clearly. I appreciate some my say it's her money and future but want to explore possibilites for best resolution for all

ViolaLass

How would you owning her house help you?

Nebulous2

ViolaLass wrote: »

How would you owning her house help you?

Or her? ....

alic6909

I'm not sure...wouldn't that count as equity if I remortgaged?

Nebulous2

alic6909 wrote: »

I'm not sure...wouldn't that count as equity if I remortgaged?

I'm sorry. You clearly feel stuck in a difficult situation, and are clutching at straws, when all we are likely to do is pick holes in your ideas.

You have a lot of equity. What you don't have is enough income to service the mortgage on the house.

You don't owe it to your son to keep a family home you can't afford. The best you can do is support him with his health and emotional needs. That may mean selling up and getting something smaller, close to the hospital, if he has a lot of
appointments.

Involving your mother could bring her a whole heap of trouble. Google 'deprivation of assets as a starting point. She could end up not getting care paid for her if she needs it.

alic6909

The deprivation of assets issue is something which I have been aware of for years and we did discuss this when she bought her house over 10 years ago. My only hope was that any move now would be assessed by local authorities as a reaction to my situation which can be proved and not as a calculated movement on her part.

Nebulous2

alic6909 wrote: »

The deprivation of assets issue is something which I have been aware of for years and we did discuss this when she bought her house over 10 years ago. My only hope was that any move now would be assessed by local authorities as a reaction to my situation which can be proved and not as a calculated movement on her part.

How old is she? Is she still working?

The timescale between giving something away and needing support 'could' make a difference.

However - I'm not aware of local authorities taking the needs of others into consideration in their financial assessments. Did she give away money or assets that could have funded her care? That will be the question, not how needy the recipient was.

ACG

Having equity is great, but you would have £130k of equity? Over 50%.

So owning your mums home not help you at all and definitely not her. It actually outs her at risk, if you can not repay the mortgage then there is a possibility she would be repossessed.

She could take out equity release which would mean the home remains hers, but it would depend on her age and so on and would likely erode any inheritance you (and your child) may get in the future.

Thrugelmir

Speak to your lender and ask for the mortgage to be switched to interest only. Until such time as your situation improves.

ViolaLass

alic6909 wrote: »

I'm not sure...wouldn't that count as equity if I remortgaged?

As others have pointed out, how would you pay the mortgage? You don't lack equity, you lack income.