Is putting money into parents house a worthwhile investment?

Libbylob

Hi there, any help or recommended resources to seek help from would be much appreciated!

My (single) mum downsized a few years ago and was able to become mortgage free in the process. Catch was, she moved 3 hours away from family and as she approaches the age of 65 and retirement she (and we!) would like her closer to home.

There is a house worth 200k that is perfect for her in location, size etc. However, she has only 170k to bring to the table from sale of her current mortgage free house. I have no savings or investments of my own but am in a position where I could now contribute with disposable income. Would it be a good investment to say, take out a first time buyer mortgage to cover her 30k shortfall? Over 8-10 years? Any ideas how we could arrange how I could benefit with a fair profit from this?

Thankyou in advance

masonic

So you do not own a property yourself? And you intend to live with your mum in this home? And jointly own the property with your mum? If you don't intend to live in the property you might struggle to find a first time buyer mortgage you are eligible for, and if you aren't a co-owner of the property you definitely won't be able to get a mortgage on it.

If you are a part owner of the home, then you would benefit if in the future you were able to sell the property for more than you both paid into it, or if you end up with a larger share of the property than you'd otherwise be entitled to based on the amount you contributed to its purchase. But is the intention here to help your mum or profit from an investment?

xylophone

Presumably she will have income in retirement and the borrowing requirement would be very modest - could she not look into this?

Google mortgage in retirement.

Libbylob

A bit of both really - but more to help my mum get nearer! I'm very lucky whereby I currently live with my partner and although contribute to bills - do not own any part of the house. As I have recently found myslef in a position where I could start having spare income - its whether I start saving so I can invest in property/for myself in the future or help my mum out by using those monthly payments to pay her new mortgage - thereby perhaps benefiting me in the future, hence why I'm having to look at this a little selfishly. I wouldn't be living with her, no, but she would put me on as co-owner.
Thankyou for shedding some light though! I wasnt sure where to start when aimlessly googling!

Libbylob

Yes she has a small nest ant and pension - I will certainly look at thos option also. Thankyou

masonic

Libbylob wrote: »

I wouldn't be living with her, no, but she would put me on as co-owner.

This might be ok if you were both on the mortgage, but that may rule out first time buyer mortgages.

xylophone

small nest ant

If it's only the one it won't be breeding and won't want the nest for long...:)

Has your mother checked her state pension situation?

https://www.gov.uk/check-state-pension