Purchasing property with mother

SR111

Hi

I'm hoping I have posted this in the right place...

I intend to buy a property with my mother, split 50:50 for us both to live in. She will be a cash buyer and I will be using personal saving and a mortgage. 

Based on legal advice we believe the best option is for my mum to be on the title deeds in order to avoid the risk of POAT or deprivation of assets (inheritance tax is not an issue). 

The next issue is mortgages... from speaking to a mortgage adviser and a few banks our options seem to be:

• 2 names on deeds but only 1 name on the mortgage - HSBC and Halifax will lend under this scenario (if you know of any other lenders please let me know)

• both names on the deed and mortgage - Barclays will allow a joint mortgage with a long term (up to 40 years) based solely on my age and income (is there some catch here will we both require life insurance, my mum doesn't need or have any as she's retired)

The alternative would be that my mum gifts me her money and I am the only name on both the deeds and mortgage.  But the risk of POAT/deprivation of assets is enough to scare me away from this. 

Is there anything we are missing? Is there a better way to do this? She could loan me the money or the property in mind could be modified to provide a self contained annex which she could rents? Both will result in additional tax implications.

[For those concerned about whether or not we have thought this through my mother currently lives with me following the sale of her property 6 months ago. She is a widower and I am divorced so we enjoy the company and in return for the childcare she helps with at the moment I am happy to provide care in the future (I will add that my mum is adamant that she never wants to be put in care, and instead will be taking a trip to Switzerland when the time is right... her words not mine. ) ] 
Many thanks

kingstreet

Halifax does not offer 'sole borrower, joint proprietor.' Only HSBC offers this. Yes, Barclays will ignore the age of the older borrower if their income is being included. You may need to consider life cover to protect your mother against the loss of your income. You don't have that need as she won't be funding the mortgage as her income will be ignored as above.

AdrianC

SR111 said:

I intend to buy a property with my mother, split 50:50 for us both to live in. She will be a cash buyer and I will be using personal saving and a mortgage.
...
The alternative would be that my mum gifts me her money and I am the only name on both the deeds and mortgage.

That would not be buying it with her 50/50. That would be you 100% buying and owning it.

She is a widower and I am divorced so we enjoy the company

And what if you meet somebody else? What when your kids leave home? You have what sound like youngish children - to need childcare - so I'm guessing you're in your 40s, and your mother in her 70s? You could very easily have two decades of this arrangement in front of you.