Gifting house and living in it afterwards

Rigpig66

bobster2 said:

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"?

If it ever came to the decision, however, I would do the same as what my mum and dad did (they had the family home
changed so my man could live with us and have nursing care at home) and the cost of paying for care if she ever needed it would fall between me and my sister 

Rigpig66

Keep_pedalling said:

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. 

Thanks for the information yes she is fully aware of this too, and she has said she would move in to my sisters home if ever needed in the future. I grew up with my disabled nan living with us as mum and dad converted the family home for her it’s been a way of life!! You never see family out in the dark!

TBagpuss

Rigpig66 said:

Keep_pedalling said:

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. 

Thanks for the information yes she is fully aware of this too, and she has said she would move in to my sisters home if ever needed in the future. I grew up with my disabled nan living with us as mum and dad converted the family home for her it’s been a way of life!! You never see family out in the dark!

It would be possible for the hous to be trnasferred to daughter nd for mum to have a legal chasrge over the property . The charge would be a second chanrge after the mortgageand would protect mum's position in the event of any serious probalems such as mum and duaghter falling out or if things don't turn out as planned (I know you have said 'never again' on remarraige, but there are other situatios - for instnace, if you suffered a caestrophic heacidence or health issues so it was you who had costs of care that needed funding)

If the plan is that you will remortgage and borrow money for imporvements then it may be that the charge in her facout would be for less than 50% of the value on the basis that you are effectively putting more in . But you and she would both need to get separate and indepenent legal advice.

I think that she would be required to sign forms as an adult living in the property which basicaly confirm that she accepts that if your mortgage lender were to repossess,she would move out and would not asert any right to occupy. (If she had a charge over the property then in that situation, if the proeprty were sold, the money would be used to first pay off your mortage and any charges, then to pay her charge, and anything left over after tht would go to you. So having a chargealso gives her protection if you were to go bakrupt or otherwise get into finacial difficulties. 

She can if she wishes then write her will to provide that the debt is forgiven on her death so you wouldn't be required to repay the estate at that time