Gifting house and living in it afterwards

kingstreet

There are lender options for both a joint mortgage/ownership and a sole mortgage with a transfer of equity.

Linton

At 75 Mum could live say another 20 years.  What happens if you die in the meantime?  What happens if you want to move out and you need to sell to buy the house of your dreams? Please for Mum's sake get all the what-ifs sorted before acquiring the house otherwise she could end up homeless.

diystarter7

Linton said:

At 75 Mum could live say another 20 years.  What happens if you die in the meantime?  What happens if you want to move out and you need to sell to buy the house of your dreams? Please for Mum's sake get all the what-ifs sorted before acquiring the house otherwise she could end up homeless.

Great post and has mum sought independent legal advice or from a close family member that is respected by her?

Many pitfalls once/if into your name - EG, you get married or partner, separate they want share - you are sued/claimed against/debts/seriously fall out/etc, so please get mum indy advice as per my post.

Thanks

Rigpig66

Linton said:

At 75 Mum could live say another 20 years.  What happens if you die in the meantime?  What happens if you want to move out and you need to sell to buy the house of your dreams? Please for Mum's sake get all the what-ifs sorted before acquiring the house otherwise she could end up homeless.

Thank you for this in my will it would be left to my daughter she would never kick her out also I am insured up to the hilt so all mortgage would be paid off. Income protection life critical illness we are a very close family !

Rigpig66

As for the marriage never again! And as for legal advice yes a close friend is a lawyer so we have legal things covered in the space of probate 

Rigpig66

kingstreet said:

There are lender options for both a joint mortgage/ownership and a sole mortgage with a transfer of equity.

Thanks only until she’s 80. And I’ve been paying it all for the last 5years so the affordability should be all ok

km1500

Ignore the posts who state this is a gift with reservation - it is not. Your daughter will.own the property and you will not be sole occupier as djexwill be living there.

GWR applies only when eg you gift your house to your child but continue to live there alone.

"The other exception is where a gift of a share of the property is made to someone who shares occupation with the donor – for example, an adult child who is still living at home. Such a gift will not be a GWR, even though the donor continues to occupy the property without paying rent. Again, for the arrangement to be fully IHT effective, the shared occupation must last until the date of death of the donor. So, this idea will only really be viable where co-occupation is likely to be a permanent arrangement. It is also important that the donor does not benefit in any way from the arrangement – so the donee cannot pay more than their fair share of the property outgoings."

bobster2

km1500 said:

Ignore the posts who state this is a gift with reservation - it is not. Your daughter will.own the property and you will not be sole occupier as djexwill be living there.

GWR applies only when eg you gift your house to your child but continue to live there alone.

There are various ways that something which at first might be deemed not to be a GWR could suddenly become one again. Guidance here...

https://www.countrywise.org.uk/files/Avoiding_a_gift_with_reservation_of_benefit.pdf

bobster2

Rigpig66 said:

Thanks all I’m in talks with a mortgage advisor today, as for care it would come to that decision if ever needed. No assessor savings and the only thing she had is half this house value which is £130,000 (valued at 260000 so minimal in IH tax too!

we shall see what the mortgage advisor says

It's not quite clear what you mean here. You mean mum has no savings? Only asset is the house?

So what happens if she needs social or nursing care (either at home or residential) later on? Not sure what you mean by "come to that decision"?

Keep_pedalling

Rigpig66 said:

Linton said:

At 75 Mum could live say another 20 years.  What happens if you die in the meantime?  What happens if you want to move out and you need to sell to buy the house of your dreams? Please for Mum's sake get all the what-ifs sorted before acquiring the house otherwise she could end up homeless.

Thank you for this in my will it would be left to my daughter she would never kick her out also I am insured up to the hilt so all mortgage would be paid off. Income protection life critical illness we are a very close family !

However close you are, your mother would be giving away her long term security which would, to be frank, a very dumb thing to do. People have been made homeless after these sorts of arrangements either because of a falling out or because the owner ran into financial difficulty and was made bankrupt.