Grandmother wants to sell me her house - what to look out for? If anything ?

[Deleted User]

Hey people! So I’m in the market for a house when all this madness subsides (hopefully), now my elderly grandmother has mentioned that she wants her house to go to me as she can no longer take care of her self, and has opted to go into a sheltered housing style of living (she’s needing funds to be able to pay for her care while she’s there, so the only option is for her to sell her house to be able to afford it).

the catch being, she wants me to have the house if it’s ever to be sold, now, my questions are..
; is there any sort of complication with this kind of thing? Anyone had a similar experience ? Would it be classed as a private sale ? I have a deposit as she’d like to sell it to me for a discounted price as-well of course.

any help or questions to aid your help would be much appreciated! Thanks In advance.

[Deleted User]

I must add, I’d be a first time
buyer.

Bossypants

There's objectively no problem with you buying her house (not sure what you mean by 'private sale', she wouldn't need an EA but that's really the only difference from if you were buying from a stranger). There are two areas I think you need to give serious consideration to, though:

1) Do you actually want her house, more than any other house you would be able to afford? Does it suit you in terms of size, layout and location? If it needs updating, will you be able to afford that to your satisfaction? This is a HUGE and very expensive decision, don't get sucked into it just to make Grandma happy!

2) If she sells it to you at less than market value and later runs out of funds to pay for her care so that the council need to step in, this would be seen as deprivation of assets. If she's going to sell it to you, it would be safer to do so at market value.

[Deleted User]

Bossypants said:

There's objectively no problem with you buying her house (not sure what you mean by 'private sale', she wouldn't need an EA but that's really the only difference from if you were buying from a stranger). There are two areas I think you need to give serious consideration to, though:

1) Do you actually want her house, more than any other house you would be able to afford? Does it suit you in terms of size, layout and location? If it needs updating, will you be able to afford that to your satisfaction? This is a HUGE and very expensive decision, don't get sucked into it just to make Grandma happy!

2) If she sells it to you at less than market value and later runs out of funds to pay for her care so that the council need to step in, this would be seen as deprivation of assets. If she's going to sell it to you, it would be safer to do so at market value.

Yes it would be a great property to live in, the main way I’m thinking, is it’s an ‘easier’ option to get into the property ladder, and have something that’s ready to live in, very modern, and in a good area, without having the hassle of potential sellers pulling out etc.

we've had chats about it for a long time, and this year she’s decided it’s best for her to seek help for living, I guess my best option is to speak to a solicitor and finance/mortgage advisor? 

Bossypants

Start with the mortgage broker, you don't need a solicitor till you have all your financial ducks in a row. Do make sure she sells to you at market value if there's any chance she'll run out of money for care, though, given her circumstances it could bite you both badly if you don't.

[Deleted User]

Bossypants said:

Start with the mortgage broker, you don't need a solicitor till you have all your financial ducks in a row. Do make sure she sells to you at market value if there's any chance she'll run out of money for care, though, given her circumstances it could bite you both badly if you don't.

I’ve also been told a better option could be that she signs the house over to me, and I give her for example £500 a month, or how ever much her care costs, apparently she would get care free, or a lot cheaper that way? 

csgohan4

[Deleted User] said:

Bossypants said:

Start with the mortgage broker, you don't need a solicitor till you have all your financial ducks in a row. Do make sure she sells to you at market value if there's any chance she'll run out of money for care, though, given her circumstances it could bite you both badly if you don't.

I’ve also been told a better option could be that she signs the house over to me, and I give her for example £500 a month, or how ever much her care costs, apparently she would get care free, or a lot cheaper that way? 

Look up deprivation of assets and your trying to swindle the taxpayer it seems, Luckily it has been tried many times and failed for said reasons

Please get financial advice for your grandmother, you get it wrong and it could cost you both dearly. Don't take wrong advice which you clearly have. 

Bossypants

Mjfender26 said:

Bossypants said:

Start with the mortgage broker, you don't need a solicitor till you have all your financial ducks in a row. Do make sure she sells to you at market value if there's any chance she'll run out of money for care, though, given her circumstances it could bite you both badly if you don't.

I’ve also been told a better option could be that she signs the house over to me, and I give her for example £500 a month, or how ever much her care costs, apparently she would get care free, or a lot cheaper that way? 

That kind of thing is exactly what the deprivation of assets laws are there to prevent. For everyone's sake, do not attempt to do anything other than buying the house at market value here - apart from the ethical considerations, councils have very deep pockets when it comes to pursuing this stuff.

[Deleted User]

csgohan4 said:

[Deleted User] said:

Bossypants said:

Start with the mortgage broker, you don't need a solicitor till you have all your financial ducks in a row. Do make sure she sells to you at market value if there's any chance she'll run out of money for care, though, given her circumstances it could bite you both badly if you don't.

I’ve also been told a better option could be that she signs the house over to me, and I give her for example £500 a month, or how ever much her care costs, apparently she would get care free, or a lot cheaper that way? 

Look up deprivation of assets and your trying to swindle the taxpayer it seems, Luckily it has been tried many times and failed for said reasons

Please get financial advice for your grandmother, you get it wrong and it could cost you both dearly. Don't take wrong advice which you clearly have. 

Not trying to swindle anything, just information I was passed, obviously incorrect , and I’m glad I posted here as I now know.

everything will be going through solicitor/advisors anyway, need to get one for myself and grandmother, and then go from there I guess.