Flat for mum

Needajob

Hi all,

My mum, who is in get 80s has terminal cancer and is currently undergoing treatment which means she is living temporarily with my niece. Treatment is going well, radiotherapy at the minute. Prognosis is good, it cant ever be cured but can be controlled. In the next month or so, mum should be able to live back on her own, she wants her independence and we are all keen to help. Mum wants to give up her council property which is too far away from family, and move near my sister and niece. We have seen a nice 1 bed, over 55s sheltered housing property, ideal for mum. On the market for 130k, I currently have no mortgage, I own my property and we want to buy the property for mum. Mum has enough savings for a deposit and a moderate income from which she could easily pay the mortgage repayments and service fees etc.,

Any advice on the best way to do this? Im in full time employment and I earn enough to qualify for the mortgage but not sure if I can get a residential mortgage if I already own a property on a property which I wont be living in. Is a BTL an option? Any advice much appreciated.


Thank you

AnotherJoe

Yes you can get a residential mortgage for family. Best to see a broker. You'd have to pay an extra 3% SDLT. Or an alternative would be (again see a broker) remortgage your house and release enough cash to buy the property outright. Less hassle.

Also talk to whoever owns this flat complex, check you are allowed to purchase if under 55 (I'm assuming you are but maybe not?) as long as the person living in it is over 55.
Good luck with your mums health.

Needajob

Funnily enough, I will be 55 at the end of the month, but yes, I will speak to the complex and make an appointment to see a broker when I get back home.

Appreciated.

elsien

Who is going to own the flat - you mention mum has enough savings for a deposit and mortgage repayments but that you will be buying the flat for mum.
If you both have a financial stake in the flat, have you considered how your bit would be protected if mum gets to the stage where she can't manage independently and needs to move to residential or nursing care?

Needajob

It will be mums flat but in my name as I can get the mortgage, she cant, if that makes sense, her deposit, her paying the repayments. I will just facilitate it for her. I will have no financial stake.

Thanks

Needajob

Technically, I will own it I guess.

Paul_Flavin

Hi,
Probably the most simple & straight forward way of of doing things is to raise the money required as a remortgage on your own residential property then, purchase the property with the cash from your remortgage & mum's deposit.
You should have a legal charge / agreement placed on your mother's property to ensure that it's legally clear that you are the owner of the property so that it doesn't for part of her estate.