Paying of mother's mortgage - care cost concerns

LilElvis

PG2018 wrote: »

Cheers

Maybe a formal loan agreement would be sufficient then and there is no need to put a charge on the property.

There is no way round paying for proper legal advice. You might find that your loan will be treated as secondary in importance to both the existing charge and the need to pay for care fees and you could be left with nothing.

PG2018_2

LilElvis wrote: »

There is no way round paying for proper legal advice. You might find that your loan will be treated as secondary in importance to both the existing charge and the need to pay for care fees and you could be left with nothing.

Good advice mate. I will certainly be speaking to a solicitor, but I was just pondering whether a formal loan might, in fact, be all that is required.

Mojisola

PG2018 wrote: »

The whole situation will no doubt be complicated by the fact that there is already a second charge against the property for a secured loan, although this is relatively small.

One final question if you don’t mind? Although I am looking to use this tactic legitimately, what is stopping anybody using this method to enact an unscrupulous deprivation of assets? I.e does the charge have to be tied to me loaning the money and be done at the same time?

Of course it has to be tied to a loan - councils are well versed on all the deprivation cons that people attempt and will query anything that does look right.

PG2018 wrote: »

Maybe a formal loan agreement would be sufficient then and there is no need to put a charge on the property.

I would still put a charge on the property as well. It protects your money.

If your mother doesn't have a lot in savings but ends up needing residential care, you may be asked about paying a third party top-up fee so that she can be in a more expensive care home than the council funding will pay for. Worth reading up on the issue so that you don't have to make decisions in a rush.