Equity Release to Fund a Child's House Purchase & Tax Implications

Sea_Shell

I don't know the legal ins and outs of doing that, or how "watertight" they are....

However, have you potentially left yourself at the mercy of being placed somewhere "horrible" by the LA if either of you should need care and can't afford to self fund? ☹️

Leodogger

Sea_Shell said:

I don't know the legal ins and outs of doing that, or how "watertight" they are....

However, have you potentially left yourself at the mercy of being placed somewhere "horrible" by the LA if either of you should need care and can't afford to self fund? ☹️

We would be no worse off than millions of others and I have never wanted my home to be sold to pay for mine or my husband's care.   I would probably pop a bottle of pills before that happens (only joking LOL!).   My daughter said she would never allow me to go into a care home and I told her to put a pillow over my head before ever allowing that to happen !

MWT

Leodogger said:

sammyjammy said:

If his tax debt was included in his bankruptcy then he owes no money other than what he pays out in an IPA for another 18 months.  Its probably way too early to get any kind of mortgage.

Well he said he owes it because he keeps getting letters from HMRC.  Anyway he is going to have to agree a payment plan before he can even contemplate looking for a house or mortgage. 

I would suggest he might want to post over here before agreeing to a repayment plan...

https://forums.moneysavingexpert.com/categories/bankruptcy-living-with-it

There is a lot of experience there that can help him determine if there is really anything he does need to repay or not, as it all sounds a little odd from the timeline you've outlined.

Leodogger

MWT said:

Leodogger said:

sammyjammy said:

If his tax debt was included in his bankruptcy then he owes no money other than what he pays out in an IPA for another 18 months.  Its probably way too early to get any kind of mortgage.

Well he said he owes it because he keeps getting letters from HMRC.  Anyway he is going to have to agree a payment plan before he can even contemplate looking for a house or mortgage. 

I would suggest he might want to post over here before agreeing to a repayment plan...

https://forums.moneysavingexpert.com/categories/bankruptcy-living-with-it

There is a lot of experience there that can help him determine if there is really anything he does need to repay or not, as it all sounds a little odd from the timeline you've outlined.

I will pass the info on, thanks.