Can this be done?

Spendless

Recently my relative died. The widowed spouse is in their 70s and disabled following a stroke. Together they have 2 adult children. Some years ago the widower took out an IO mortgage on the property to pay off debts. Family fetched up whether this was a good idea at the time and what was the plan for paying it off to which the reply was 'they'd be dead by then so wouldn't be an issue'. How much was borrowed at the time is unknown as is how long the outstanding morgage is for, the details having now been forgotten but an idea is it was fpr around £70K and has 2-3 years left. The 2 adult children are in the process of becoming joint POAs, at which time I guess they can find out the actual detail.
One of the adult children has proposed the following. They buy their parents house for the outstanding mortgage, move in with them and care for them. Possibly even selling their own home to fund any alterations or additional space needed.
The house is worth more than the £70K outstanding, maybe around £120K. I've already thought about DOA. Though the person proposing believes if they're caring movement to a nursing home won't happen. My own view of that is that they're being naive.
None of this sits 'right' with me, but at the same time I might be completely wrong. 

yksi

I don't have words of wisdom but I also think they're being naïve. Caring for a disabled person 24/7 is harder than they'll expect and it's very likely they will need at least respite care and possibly full-time care well within the next 7 years. And it's uncertain whether your relative has another 7 years to live, because even people in relatively stable health can have unexpected setbacks. I wonder what the adult child's plan will be if the disabled relative needs full-time care and there are no funds for it because the house can't be sold at the time as the adult now lives there? Putting aside the question of DOA, public nursing care is not good and why would you want to put someone into such an environment by choice?

xylophone

 The disabled mother had capacity to grant the PoA?

Spendless

xylophone said:

 The disabled mother had capacity to grant the PoA?

Yes they do. The disabilities are physical ones. 

gwynlas

What happens if the IO mortgage falls due and nothings been done? The spouse would need to sell up to settle the mortgage and obtain suitably adapted rental property. Whilst the residual sum from the sale would give them a buffer it is likely that the amount of capital they have would preclude access to certain benefits. If they went into a care home at this stage it would quickly dinish in top up fees. The children need to come to an agreement re care for mum now and in the futuure as well as agreeing funding for same. The person selling their home to move into mums could perhaps set aside a lump sum towards this.

getmore4less

No paperwork or details of where the payment is going?

If joint the administrator of the deceased estate can deal with this now.

Spendless

It's not known how long until the IO mortgage is up. Within the 'next few years' is the best guesstimate. The mortgage is with a high street lender. Widower can't remember details  or produce any paperwork and the POA is still going through.
What I'm struggling to get my head round is, is it allowed to sell your house on a heavily discounted 'mates rates' if your property is worth more, even if it is to one of your kids who says they'll move in with you? To me it just doesn't sit comfortably, but I'm prepared to be told this is all possible  

Spendless

getmore4less said:

No paperwork or details of where the payment is going?

If joint the administrator of the deceased estate can deal with this now.

No will left from the deceased, so everything goes to spouse. A bank statement has revealed who the mortgage provider is. 

xylophone

No will left from the deceased, so everything goes to spouse.

Not necessarily.

https://www.gov.uk/inherits-someone-dies-without-will

https://www.samconveyancing.co.uk/news/conveyancing/power-of-attorney-can-i-sell-the-house-8467

Is the person you have a Lasting Power of attorney over still capable of making decisions?

If they are, then you cannot proceed without the donor's permission. So the answer to a question such as "Can I sell my mother's house with power of attorney?" is possibly, it entirely depends on whether she has enough control of her mental faculties to decide whether to do this herself or not - if she has, then you can't.

To reiterate, with a power of attorney property can only be sold if the subject is incapable of making a decision - but the sale must be in the subject's interests.

 If the Attorney sells the house to himself at undervalue (ie make himself a gift)  see 
https://www.gov.uk/government/publications/giving-gifts-a-guide-for-deputies-and-attorneys

The mother has capacity and can sell at undervalue (or even gift) the house but if she should need means tested care, expect to Local Authority to  consider  deprivation of assets.
https://www.ageuk.org.uk/information-advice/care/paying-for-care/paying-for-a-care-home/deprivation-of-assets/

elsien

I’m unclear why you’re thinking the power of attorney means that they’ll be able to get more details when it’s in place, as that isn’t necessarily the case.
Mum may choose to only grant an LPA that comes into effect when she loses capacity. And even if it’s one where it can be used when the person still has capacity, it still needs the person’s consent.
Which begs the question as to why, if mum has capacity, she isn’t either tracking the information down herself, or giving a relative written consent to do so on her behalf. All of which is possible without an LPA being in place. 

MovingForwards

The title deeds will say what the amount was, when first borrowed, but won't confirm the current outstanding balance which could be more than the house is worth.

Nothing to add about the rest as it's been covered by others.