Help wanted complicated situation

Ampan

Hello, just looking for a little advice.

As it stands my family lives in a tiny home and there is £50,000 left on the mortgage. We really need to upsize due to expanding family and our home is looking to sell for £170,000, realistically.

We want to buy something with my MIL and have her live in an annexe for example. Our own credit isn’t great and my MIL used to be a teacher, now working as a nanny making only £300 pw.

We need something detached with space, and preferably with a little land. We currently live on the border of the midlands so we know our budget cannot stretch at all here.

Any advice with regards to best way to approach this, maximise our mortgage options etc., would really be much appreciated.

Sea_Shell

Are you saying that your MiL is bring equity to the new house from the sale of her own? If so, how much?

Ms_Chocaholic

Where does your MIL currently live?

Ampan

She currently lives with the family she works for. No equity.

Ms_Chocaholic

So what benefit is there bringing your MIL to live with you if she is bringing no equity. Sounds like a lose, lose situation to me.

How much extra room do you need in your current home?
Could you build an extension.

Ampan

We would likely get a joint mortgage with her.

Sea_Shell

Ampan wrote: »

She currently lives with the family she works for. No equity.

Ok, so...how much do you and your partner/spouse earn?

Ampan

We currently live in a terraced house with a tiny garden - not even worth calling a garden. No real prospect to extend and we want to leave the area we live in and be more rural.

MIL to live in an annexe type of thing to help out with children so we can expand business. She’s getting older and would rather be with the grandchildren than nanny another family’s kids.

Ampan

I don’t work atm, but I’m in the process of setting up a cake business (wedding / birthday etc.,)

Total household income currently is 38,000.

Ms_Chocaholic

How old is your MIL? What income will she have if she lives with you and cares for the children? Will she be expecting an income from yourselves as well as free board/lodging?

Thrugelmir

Ampan wrote: »

. She’s getting older and would rather be with the grandchildren than nanny another family’s kids.

If she doesn't bring something financially to the party. Then your plans aren't even going to get off the ground.

Perhaps start by seeing what you can save out of your existing budget. Use this money to overpay your mortgage. Major life changes rarely happen overnight. They need to be worked for.