Property v pension

DairyQueen

Your aim is to be close enough to care for mum but live independently?

I am in a similar situation but am married (spouse not working locally) and don't own parents' home. We had sufficient equity to buy two small homes (one local to parents and one that enables OH to live in commuting distance to work during the week). However, I considered all kinds of alternatives before we took the plunge.

First thought: is there sufficient space in the garden of your current home to site a caravan or chalet (these often meet the criteria of 'mobile home' and can be sited in gardens without planning consent if their use is 'ancillary' to the main home - and this would be). A small version of the latter will cost in the region of £40-£50k including site works. They are very well equipped (think small bungalow).

The same amount of cash could provide an extension to the current home (a small annexe for you).

Neither of these options can be rented out in the future without planning consent (unlikely to get that) but both would increase the value of your home.

Another possibility would be a park home - specifically on a park designated for holiday use. These tend to be cheaper than those aimed at residential. They usually have restrictions on use (typically 8-11 months per year). They cost anything from £25k+ (depending on location and type of unit) and some parks allow you to rent as a holiday let when not in use by you. They are depreciating assets (like a car) and the service charges can be high (£2k+ per year) but they are not subject to any of the constraints/tax that apply to bricks-and-mortar.