Delicate issue... need good advice!

the_lar

[FONT=&quot]Hi all,[/FONT]

[FONT=&quot]I have a fairly complicated and delicate situation which I need some good advice on please. My long-term partner and I are considering splitting up after a very long struggle, I won’t bore you with the details but we have not arrived at this decision lightly. I just need to work out the most appropriate course of action.[/FONT]

[FONT=&quot]First the financial facts - my partner and I have a mortgage on our property, and we have around 7 or 8 years left to pay, I think we owe about £50K or thereabouts. Our property is now worth around £220K, maybe a bit more. We both have a single elderly mum each of whom own their own homes, I am the sole beneficiary of my mum's home and my partner is one of 3 beneficiaries of her mums’ home. My mum is disabled and has regular bouts of ill health, she doesn't have much in the way of savings and I fear that at some point she will need full time care, so naturally I’m concerned about her home needing to be sold to pay for care. [/FONT]

[FONT=&quot]We also have 2 children, one of whom is still living with us aged 16 the other is at uni. [/FONT]

[FONT=&quot]Income wise, I have always been the main breadwinner earning around £45K per annum, she earns £12K. As such I've always paid for our mortgage and all the household bills. This means that my partner does not have the financial clout to buy my me out or the ability to afford the mortgage on her own.[/FONT]

[FONT=&quot]I want to make the split as amicable as possible and do it in such a way that my partner and my son are as protected financially. To that effect I wanted to run an idea past the knowledgeable people here to see if there are any pitfalls I haven't considered:[/FONT]

[FONT=&quot]Would it be possible to take money out of mum’s house now to pay off our mortgage on our house? Obviously, this would mean that I have a mortgage of the same amount on Mum’s house, in my name. I would then live with my mum so that I can look after her, thus reducing the likelihood that she would need to go into care. My partner and my son would carry on living at our house, mortgage free. She would only need to pay the household bills. Obviously half of the house would be mine, but that's not really relevant at this point.[/FONT]

[FONT=&quot]I just wonder how this would play out should my mum still have to go into care? Would the fact that I'm paying a mortgage on my mum's house mean that it could not be used as an asset to pay for care home fees? Would the fact that I live there be enough?[/FONT]

[FONT=&quot]Thanks in advance![/FONT]

chunkytfg

I'm sure more knowledgable people will come along shortly but my initial feeling to your idea is that you'd be sailing very close to the wind of 'deprivation of assets' with your mum which councils don't take too kindly towards when they have to pay out for Elderly care.

I commend your willingness to essentially give it all to your partner though however perhaps a slightly less emotional approach would be better in this instance.

12K a year from your partner? I assume part time? Why not full time now the kids are old enough and she's likely to need to money very soon?

the_lar

Well, 4 days a week as a TA. She gave up her career when we had kids (her choice)... obviously now it's very difficult for her if not impossible to get back to the kind of salary level she would have been at otherwise.

I mean my hope is that by doing this, my Mum would not need long term care. Mum is 76 and although disabled, I don't think she is imminently going to require care, it's just a possibility. It also means that I would have somewhere to live, but I cetainly take your point.

Thanks for your thoughts!

the_lar

Does anyone have any further thoughts on this... please?

Voyager2002

Take it in steps... there is nothing stopping you from moving in with your mother now, while still paying the mortgage. The probability is that in about two years your younger child will be ready to leave home, at which point selling the (former) family home would make sense.


I cannot imagine that you could get a mortgage on a property that belongs to someone else (your mother). Yes, she could probably get an equity release loan and you could service this if you chose.