Joint ownership with Mother in Law

dano17439

Hi


Wonder if anybody can help me out, my 82 year old MIL currently lives 80 miles away from myself and my wife. She is in not the best of states healthwise and a few hospital callouts I think has scared her that my wife is quite far away if anything bad happens.


She has talked about the possibility of moving closer to us, however, property prices are much lower where she lives.


She own her own property with a value of about 180k. To move close to us, a half decent smaller place is anything between 230-250k, plus any costs of refurbishment that she might need


Although she is really good with money, she hasn't got 50k+ to put towards the cost of a new place.


Myself and my wife have talked about helping her out, and making up the difference so she can buy a nice place. We also haven't got 50k+ sitting spare, but could easily remortgage our house, or get another mortgage for this to be a joint buyer with my MIL


So this is my biggest question....would shared ownership be possible? Say for arguments sake a new place was 240k my MIL paid 180k and we paid 60k, so a 75/25 split. Would this be possible? I'm also worried about if she ever needed a care home etc


I guess we would need some legal advice, but thought I would throw it up on here to see if any of you fine people have had any similar experiences


Thanks

Mojisola

You could let her have the money as a loan and put a charge on the property - your money will be safe that way.

getmore4less

The cost of borrowing, buying and selling when she goes will cover a lot of rent.

You can protect any investment relatively easy

AdrianC

She's in her 80s, and starting to look at health issues.

Why buy? She sells, and spends the money on renting a suitable property. When her needs change, she moves more easily, with no need to sell.

xylophone

Have you looked into any available sheltered housing near you that your MIL could rent?

dano17439

Thanks for all the responses folks. Renting has never really been discussed, but I don't she would see it as option. Yes if she sold her bungalow then the rent would be covered for circa 15 years, probably longer than she would be around tbh but I just don't think she would go for it. She is extremely proud that her and her (late) husband managed to buy a house in the first place so I think she would just see it as throwing away money that they both worked all there life for


However of course it all depends on her priorities and if that's the only way she can move closer that it might be the only option

Cakeguts

Does she have a lot of friends where she lives now because that is very important. If she does then moving to sheltered housing nearer to you is not the answer and she would be better to move to sheltered housing where her friends are.

G_M

If you buy jointly with her, your share will be subject to Capital Gains Tax as it is not your main residence. The purchase will also be subject to the extra 3% SDLT as it's your 2nd property.



If you lend her the money, it can
* be repaid when she sells or dies and
* be protected by a Charge (just like a bank mortgage loan)


I assume her £180K house is not mortgaged? (if it is, what is her equity?)


I understand her pride, and reluctance to rent, though it's an option to discuss even if it's then discounted.



Questions about her links to her area (friends etc) are relevant, but may be outweighed by her health concerns and link to your partner.

AnotherJoe

What GM said re lending her money and a charge on the new property , plus the fact is, if she's like many people of that age with poor health and likely not getting out much, she won't have that many friends still alive she can see anyway, and fewer each year, and she might do better moving into a facility where there are more like her and she can make new friends which are close by. My mother outlived most of her friends and made new ones when she moved area to sheltered housing.
That would also enable your mil to keep ownership which is important to her.

dano17439

My MIL and FIL retired to Lincolnshire about 18 years ago. MY FIL died about 8 years ago and MIL stayed in that house until 2015 when she moved to Peterborough as that's where one of her sisters lived and property prices are cheaper. Since then her sister has died so she has no connections there now. Her only friends up there are her neighbours really.

She'd be moving back to her hometown, where we are, and my wife has 2 other sisters

Her house is not mortgaged and she has no debts. She is very frugal with money, but doesn't go without. She has a very simple life really

So it sounds like a loan to her, secured on the proprty would be the best option possibly. I shall keep researching.

Thank you for all the help on this

Murphybear

Cakeguts wrote: »

Does she have a lot of friends where she lives now because that is very important. If she does then moving to sheltered housing nearer to you is not the answer and she would be better to move to sheltered housing where her friends are.

The truth of what goes on in sheltered housing

We decided to have an evening of music and nibbles yesterday evening in my sheltered housing. We have a massive communal lounge.

What started out as that soon turned into a party. There was tons of food and loads of booze, music and lights from one of the high tech tenants (you know what I mean). Even the peeps with knee and hip replacements were dancing away.

Everyone had a wonderful time.

:rotfl: :rotfl: :rotfl: