Mum wants to sign home over to me

Shnook

Hello yes we have read about this a little bit but my mum is only in her late 50s so won't be having to think about care homes for quite some time yet. She is not doing it to afford care home costs in the future but as she no longer wants to be in the house and is struggling financially and wants my family to live in the house.

AnotherJoe

Shnook wrote: »

Hello yes we have read about this a little bit but my mum is only in her late 50s so won't be having to think about care homes for quite some time yet. She is not doing it to afford care home costs in the future but as she no longer wants to be in the house and is struggling financially and wants my family to live in the house.

Well the oniy way to know that is publish the numbers I asked for. If the numbers don't work it's irrelevant what mum wants.
Is there anything special about this house which by the sound of it is run down and without basic facilities ? From the financial position of you and mum you don't seem to be ina position to afford to buy and renovate.

AnotherJoe

AdrianC wrote: »

Nobody said "deprivation of assets" yet? Then let me be the first.

See post 8.

LilElvis

Shnook wrote: »

Hello yes we have read about this a little bit but my mum is only in her late 50s so won't be having to think about care homes for quite some time yet. She is not doing it to afford care home costs in the future but as she no longer wants to be in the house and is struggling financially and wants my family to live in the house.

It's been asked several times already - where is the money coming from for your Mum to purchase her new, smaller home?

shortcrust

As someone who’s seen a load of potential inheritance go on care costs I can honestly say I wouldn’t have had it any other way. Don’t get me wrong, it would have been great to pay off the mortgage but my gran’s last few years have been far more comfortable, flexible and relaxed because she has a load of money to spend in the way that she chooses. I have another relative who is heading down the same path with zero funds and I’m dreading it for both them and me.

Shnook

Hi everyone thank you for replying.

So to answer a few questions - my mum is in her late 50s and isn't doing this to avoid future home care costs.
My nan is still alive but unfortunately suffering with severe dementia my mum cared for her for 7 years whilst she lived with them until the dementia got too bad and she had to go into a care home. Towards the end of this 7 years it was a very difficult time for my mum which has left her with a lot of bad memories in her house which is one of the reasons she would like to move.
My nan fully signed the house over to my mum 20 years ago and then applied for a bungalow from the local council to which she lived in then for over 10 years before she became too ill and moved back in with my mum to be cared for.
My mum would be hoping to also apply for a bungalow or flat from the council if we could take over the house for her.
My brother isn't interested in receiving any money now we would come to an agreement that once the house was sold in the future he would receive his 'share' then. Neither of us are wanting to make sure that we get our inheritance if that goes then fine it was never our house or money to start with but my mum wants the house to stay in the family and isn't interested in taking any gain from the house.
With our 2 bed house, we bought it in 2007 had a mortgage with northen rock everything crashed we lost a lot of money in the house so are now in negative equity. We havent been in a position to over pay on the mortgage but we are currently getting the house valued to see if we could break even on it if we did sell. If not and we would owe money then yes we would just have to swallow that and pay it back.

AdrianC

Shnook wrote: »

my mum is only in her late 50s so won't be having to think about care homes for quite some time yet.

Yet she's too ill to work and her husband is her carer.

Care homes are not just about age.

She is not doing it to afford care home costs in the future but as she no longer wants to be in the house and is struggling financially and wants my family to live in the house.

She can't afford the house.
You can't afford the house.
Neither of you can afford the sentimentality...

Give us some numbers.
What's the house worth?
How much does the house need spending on it?
How much is the outstanding debt?
How much -ve equity are you in?
What's your borrowing potential?

I'm surprised the LA haven't gone after your grandmother for deprivation, given that she's presumably LA funded in the care home, having given her home away...

Brock_and_Roll

Think I am starting to understand this now.


Firstly, the mum's mortgage company will not allow the house to be signed over to someone else without the outstanding mortgage being paid off in full first. So unless you could get a mortgage for at least the outstanding loan amount, then this is not an option.


Secondly the OP's mum could convert mortgage to buy to let loan. However, given mums circumstances and the fact that close family would be living in it (banks don't like) then this is also a non-starter.


Thirdly, a lot has changed since the OP's nan signed over the house to the OPs mum - you cannot just dispose of assets and throw yourself on the council without them digging into the financial past. I think that these days there is a real danger that they would regard her as making herself "intentionally homeless".


The obvious and best solution for the OPs mum would be to sell the house and rent a suitable bungalow privately - after all the OP says the house has bad memories for her etc. If at some point in the future her savings level falls below the threshold (and she can take advantage of the annual allowances etc to "give away" cash) then she will be eligible for LA support as and when she needs it.


EDIT: the OP could use annual cash receipts from mum to throw against their mortgage and in due course dig themselves out of negative equity which will open up a whole range of possible savings in terms of remortgaging at a better rate etc.

LilElvis

Why do you think the council will provide your mother with a home when she already owns one?

Brock_and_Roll

AdrianC wrote: »

I'm surprised the LA haven't gone after your grandmother for deprivation, given that she's presumably LA funded in the care home, having given her home away...

The LA finance world has changed dramatically over the last 20 years!