Mum wants to sign home over to me

pinkshoes

How much is your home in negative equity?

How much is your mum's home worth? How much is the loan?

I think the only way this would work is if you sold your home, then bought your parents home.

You would then need to be able to take out a mortgage to over the negative equity in your current home, plus any mortgage required for you buying a bigger house.

The loan against the house will need to be paid off when the house is sold. You cannot take over this.

AnotherJoe

Shnook wrote: »

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.

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Your Nan was very lucky that the readers of this thread and others paid for your Nan to get a bungalow when she owned a house, luckily there's no chance that would happen these days.

Shnook

Yes my mum suffers with an illness but is not elderly and will hopefully not be having to think about care homes any time soon. No one can predict the future but her husband and myself and brother would care for her before we ever considered her going into a home the same way we did with my nan.
We don't have all the figures yet but are currently trying to pull all this information together.
It is a secured loan my mum has on the house not a mortgage we think there is around 10 years left on this loan with roughly Something between 20-30k left on the loan. With current house prices we think that the equity in the house would be somewhere between 50-60k.
Our house needs to be valued which someone is doing today we could either walk away owing a few grand or break even I think we would be lucky to come away with much profit but it is a possibility.
My grandmother paid for her own care home fees and then late last year had to be sectioned which now means she is in a high dependency home and gets her care fees paid regardless of her income.
There is nothing to stop my mum registering with the council for a property it just depends what priority band they put her in. I have contacted the council to see where she would stand. I know someone who owns their own home and is on the council list for a property as she is selling her home as she struggles with the mortgage and upkeep of the house.

Keep_pedalling

The sensible thing to do is to totally forget about hanging on to the house. Your mum should sell up, downsize to something more suitable and pay off the loan.

There is zero chance of her getting LA accommodation in these circumstances.

warby68

Oh my goodness OP, you might be in for a hard time here now the truth is out.

Your family want to give away a house and get social housing and have already done it before.

Even if that weren't the case, your inability to make overpayments to sort your own negative equity suggests you are not well placed to take on new commitments.

Mum can sell up, buy or rent cheaper with her secured loan cleared and, if possible help you out a little to clear your negative equity so you can move to a suitable house under your own steam in due course. That still leaves some potential for future inheritance just not an easy immediate fix for you.

Cross posted : having seen the values another purchase by mum seems unlikely.

AnotherJoe

So there's zero chance of your mum buying another house with that little money.

If she gave that equity in the house to you and applied for a council house at the same time, that absolutely would be deprivation of assets.

You and brother can forget the inheritance, your mum and dad will be spending what little is left if they sell the house to rent a smaller place, over the next 30 or 40 years the equity amounts to about £150/month.

AdrianC

Shnook wrote: »

It is a secured loan my mum has on the house not a mortgage

Same difference.

we think there is around 10 years left on this loan with roughly Something between 20-30k left on the loan. With current house prices we think that the equity in the house would be somewhere between 50-60k.

So you're going to need to find £45k-60k to pay off the loan and your brother.
The house is valued at around £80k total?

Our house needs to be valued which someone is doing today we could either walk away owing a few grand or break even I think we would be lucky to come away with much profit but it is a possibility.

Let's add on another £5k - don't forget all the fees for selling and moving. You're now looking at £50k-65k before you own this £80k house. Before you start modernising it.

Call that £15k, and you're at LEAST £65k, potentially the full £80k - you're getting scarily close to the upper end of mortgage LtVs, y'know, even at the lower end of those guesstimates.

Even ignoring the potential for 100% LtV, can you get an £80k mortgage?

This simply does not work for you. Give it up as a bad idea. If your mother wants to sell and move, then she can sell and move.

There is nothing to stop my mum registering with the council for a property it just depends what priority band they put her in. I have contacted the council to see where she would stand. I know someone who owns their own home and is on the council list for a property as she is selling her home as she struggles with the mortgage and upkeep of the house.

She'll stand WAAAAY down at the bottom of the queue, and hell will freeze over before she gets anywhere - with her gift to you subsidised by the council tax payers of your area.

Shnook

My nan discussed what she was doing with the council back then, my mum and brother and I where living in a 3 bed council house which the council saw as gaining that back when we moved into my nans house and where happy to give my nan a bungalow because of this. Yes that is all different now but that's what happened.
We will look into possibly buying the house from my mum once we have the figures all worked out as this may be the best or only option. It is a mine field and all just a possibility at the moment we are just trying to figure out options and what to do for the best.

Brock_and_Roll

Without wishing to be rude here, the OP needs to focus 100% on what is right for the mum.


I fail to see how any solution other than mum selling the house to a 3rd party (or to the OP is they can afford it) would work, in fact it is fraught with danger.

Shnook

I have advised my mother that her best option is to probably sell and rent somewhere smaller but it is her that wishes for us to live there so we just thought we would look into options. I have told her that it is highly unlikely that we would be able to take over the house for her. We are totally looking out for what is best for my mum and her husband it would be a shame if the house was sold to a third party but if that is what happens then so be it. We are not trying to do this to avoid rent or to scam anyone we just thought if mum has to/wants to move and my family needs a bigger house then it could be a solution for us all.
She isn't intending that her rent in a council house would be paid for her but the rent would be cheaper than the loan payments she is making now so that could be a better option for her.