Financing a extension to house

kawasakikz1

My father in law suffers from dementia. The choices are we either put him into a home or we build an extension on the side of our house and we care for him and my mother inlaw. We would prefer the latter option. The cost is approximately 70k.
We do not have anywhere near the reserves to pay for this. They have approx. 300k value in there house. The extension would need to be built before they move.
What options do I have to finance the build.
Equity release etc.

Any ideas would be appreciated.

[Deleted User]

Can they remortgage? Or is that not an option based on their income and circumstances?

DCFC79

Are you aware of what is involved with caring for your in laws ?


I understand why you want to do this and I applaud you for wanting to do it.

BobQ

Does your father in law have a PoA? If not and he still has the capacity to sign one (ie understand what is being signed and implications) this should be done.

If he has the capacity or an appointed Attorney it is possible that his house could be sold and some of the funds used to pay for the extension. To do this beforehand some kind of mortgage on one or other property would make sense and be cheaper than a bridging loan or Equity Release.

There are issues here that would need to be protected by a legal agreement. These issues are more complex if a PoA is involved since the PoA must be used in your FIL/MIL best interest not your own.

Parts of this thread might help.

https://forums.moneysavingexpert.com/showpost.php?p=76450045&postcount=1

foxy-stoat

Try your existing lender, see if you can extract some equity from your property. You should be increasing the value of your house when its finished.