Advice for my retired parents

noom42

Hi

I'm after some advice on behalf of my parents on different options (if any) available to help them with their mortgage situation.

They have a house that they still have a mortgage on. They have around £140k left on a house worth £220,000. They had an endowment mortgage which was supposed to cover their remaining mortgage but we know how this turned out.

My dad (69) retired due to a work-related accident that has caused long-term damage to his left arm. We are still in the litigation process for that. 

My mum, at the age of 64 was made redundant from her job. About 6 months prior to this she went off on long-term sick leave as she suddenly developed Epilepsy. It affected her memory severely and just last week we were told they think she may have early-onset Alzheimers. She needs a lumbar puncture test to confirm or deny (but from the state of her memory and confusion we think it's likely going to be positive). 

My dad has a small private pension and state pension. My mum has a private pension and currently gets ESA & PIP. Her state pension will kick in next year. They have no debt, just their mortgage. At the moment they have more going out on that than they have coming in. 

It is my belief that my mum may struggle to get a new mortgage because of her health?

I've also been looking at lifetime mortgages but don't know if they'd be eligible. 

If I was in a position to take on their mortgage I would, but I financially can't. I've had my own health battles and recently went self-employed. 

We know that down-sizing may be the only option, but they've been in this house 30+ years and they're adamant they want to stay. I think it would be a massive detriment to my mum's health right now if we had to move, so I want to explore every available avenue I can. 

Sorry for the long-winded post. I adore them both and just want them to be happy. Thanks in adavance. 

MWT

noom42 said:

They have a house that they still have a mortgage on. They have around £140k left on a house worth £220,000. They had an endowment mortgage which was supposed to cover their remaining mortgage but we know how this turned out.

It didn't turn out that badly for most people, so a little more detail would be helpful.

How much time is left before the mortgage term ends?

What happened to the endowment policy? Is it still running and if not what happened to it?

In very general terms, a Lifetime Mortgage is probably not going to solve this problem for them on its own as the most they could hope to get right now is £80-90k and that would require the existing mortgage to be cleared at the same time...

There may be other solutions, but if you can give more detail on the current mortgage position it would be helpful before making other suggestions...

Brie

I think also that knowing more about the endowment might be helpful.  

Meanwhile I don't think any lender would give them a mortgage given their limited income.  They may be able however to talk to the bank about how to handle this financially.  If they have no savings and less income then outgoings things will be very tough.  That said if they have no savings they will be able to get some support from the council/social services should they (& your mom in particular) need it.  

Sorry to hear they are having such a tough time.  Hopefully you can help them find a way forward with all of this.

dimbo61

Your Mum will require more care as she gets older and same for your Dad.
Could you look at sheltered housing or over 50/60,s accomodation with everything on one level. Walk in wet room with a seat.
Renting an apartment with a warden, alarm pendent, on call care staff and no maintenance issues could offer your parents a whole new world.
Selling the family home and having cash in the bank to pay for holidays, transport and enjoying life 

Edi81

Doesn’t feel like we have the full story. 

Been in the house 30+ years and £140k owed and value is £220k - house prices were no where near this 30
year ago. 

Endowment issue came to light 15 years ago - what steps did they take then or did they ignore?
Selling is probably their only option. 

MWT

Edi81 said:

Doesn’t feel like we have the full story. 

When do we ever get 'the full story' here though?

I feel in cases like this a little sympathy and a gentle approach go a long way to making new posters feel confident enough to share as much detail as they can, so others can make their advice as helpful as possible.

Especially in a case like this, it is not about blame, or what they should have done years ago, they are where they are now and if we are given more information then helpful suggestions beyond simply selling would be great, if of course that is possible once we know a little more...

thegreenone

Firstly,  I am sorry your parents (and you) find themselves in this situation.

This is just me musing.

Are there any properties in your parents area available for 75k so they could pay off the mortgage and expenses? Preferably not a retirement property as they are notoriously hard to sell in future but if it has to be......  Or as Dimbo suggested above - rent.

I completely understand that they don't want to move from their home but might it be a good idea to introduce your Mum now while she has capacity to understand why and to make a new home hers.  If she doesn't understand her condition, perhaps push about Dad's health and he will find it a struggle to look after their current house.   It will also remove any financial worries.

Do they claim Attendance Allowance?  Do contact their local AgeUK for help and advice.  They were brilliant for my Mum.

noom42

Apologies all for not replying to this sooner. Good news is my mum has made improvements in her memory tests so this is looking like this is Epilespy only.

Thank you to those who provided a more understanding response. I was looking for some quick feedback without having to go into their life story. There are complicated reasons why they have a larger mortgage than they should and suggesting blame is not helpful. 

In all honesty, I have not much knowledge about their endowment mortgage. I just know the situation they are in currently. However, we seem to have found a solution that will allow them to stay in their home.

MWT

Glad you have a solution, I hope you have all taken appropriate advice to make sure that it is going to work as you expect for everyone.

Good luck for the future.

Edi81

https://forums.moneysavingexpert.com/discussion/6284734/getting-a-mortgage-with-my-parents#latest

If your solution is what you had on your other post then I strongly suggest you look up deprivation of assets if the intention is that the house is signed over to you.