Lifetime Mortgage in order to provide "bank of mum and dad" help with first house purchase

Cheese1990

Also if you both required care homes within about 3-5 years of gifting the money it may be seen as a deprivation of assets meaning it is still counted as money you have access to.

MWT

Cheese1990 said:

Also if you both required care homes within about 3-5 years of gifting the money it may be seen as a deprivation of assets meaning it is still counted as money you have access to.

Let's not forget that it takes more than just needing care within 3-5 years...

It also requires that you must have known at the time you got rid of your property or money that you needed or may need care and support, and also that avoiding paying for care must have been a significant reason for giving away your home or reducing your savings.

Onlooker2

Look to posts Lifetime Mortgage by another Forumite posted by an outsider Onlooker2 over the past 3 years+.It may give you in the replies an indication as to how this industry works for their own interests. Plus the disregarded readily available alternatives at this moment of making major financial decisions. Consider

MWT

@reheat - If you do go look at Onlooker's diatribe, go right back to the start some years ago and see how the monologue started with some poor choices on their part regarding what to use a Lifetime Mortgage to fund.

A lot has changed since then, both in terms of the advice given and the information provided as standard by the lenders.

 

getmore4less

Is that thread of nonsense still going on, like a village every forum has one. 

mark55man

I might go and have a look, for the lols.  But clearly sounds like someone who didn't think through the long term position and also clearly hasn't done the level of thinking that OP has undertaken

reheat

Cheese1990 said:

Another question you have to ask yourself is how would you feel if you both ended up needing care in a care home? As these can eat up any equity in a house quickly as for 2 people you're looking at anywhere from £1500 to £3000 pw. This could essentially mean you make a generous gift to your son and your daughter recieving nothing! Obviously if your happy with that then that's fine. 

Obviously not happy with that of course. Hadn't twigged the implications.

reheat

Cheese1990 said:

Also if you both required care homes within about 3-5 years of gifting the money it may be seen as a deprivation of assets meaning it is still counted as money you have access to.

Let's not forget that it takes more than just needing care within 3-5 years...

It also requires that you must have known at the time you got rid of your property or money that you needed or may need care and support, and also that avoiding paying for care must have been a significant reason for giving away your home or reducing your savings.

Yes, that's how understood what I read on this.

reheat

Thank you all for the great advice and cautionary notes 

reheat

I'm guessing there must be separate sub forum here dealing with long term care, so not sure whether to move across to there, or not. This whole issue seems to span a good few areas - mortgages, inheritance, long term care, etc.

So if you go into long term care, can you end up having to use all the proceeds from your house sale on care costs, and have nothing left for family to then inherit?