Buying a family property

Crumble_

Hi, help please.

Looking at buying my grandmas house. She has not yet passed but will not be leaving the nursing home.

I am due £9000 more than my mother and brother in her will when she passes. However this money at the moment can not be touched as it may be needed for her care. Therefore I can not use the £9000 as equity in the house.

My mother has got a loan out for the £9000 which I will hopefully be using as a deposit for the house. Then when my grandma passes the £9000 extra I am due I will repay my mother.

With anti fraud checks would this be allowed? Do I tell the bank this is what has happened or do I put the money into my savings account and show the bank my current account for the past 3 months?

ta

bris

Your mother would have to gift you this 9k. If you tell them it's a loan they will not accept it.


You have nothing to worry about as far as the anti fraud/laundering check is concerned as the money is legit and traceable. You mother will have to sign something for the bank and the solicitor to say the money is gifted though and not a loan.


You can then gift back the 9k when you get it.

keithdc

bris wrote: »

Your mother would have to gift you this 9k. If you tell them it's a loan they will not accept it.


You have nothing to worry about as far as the anti fraud/laundering check is concerned as the money is legit and traceable. You mother will have to sign something for the bank and the solicitor to say the money is gifted though and not a loan.


You can then gift back the 9k when you get it.

It does sound rather fraudulent and not legitimate if you lie about nature of transaction by pretending its a gift rather than a loan.

Tom99

keithdc wrote: »

It does sound rather fraudulent and not legitimate if you lie about nature of transaction by pretending its a gift rather than a loan.

[FONT=Verdana, sans-serif]What if your mother gifts you the £9,000 and your grandma alters her will so that your mother, rather than you, get the £9,000?[/FONT]

Crumble_

As she has got dementia and unable to even feed herself without help. My mother is power of attorney for the house but money is owed on the mortgage.

silvercar

I'm a bit confused. When you say you are buying your grandma's house, do you mean you are buying it from her? So you are paying her the money that will be used to partly fund her care and the remaining amount will be passed back to you and your brother and your mother?

It sounds very complex, why not just wait for your inheritance and then take a mortgage to pay off your mother and brother?

Crumble_

My mother is power of attorney. Grandma in a care home and will not be coming out. She may live less than a year, she may live another 5 years but still too unwell to come out of the home.
My grandma owes £30000 on the property as she took money off the value of the house years ago and goes up with interest every year.

When I buy it the £30000 will go to the company she owes the money to. The rest will be set aside to potentially pay for her care.