What to do about mum's house

majik48

If anyone can point me in the right direction for some basic info about this I'd be most grateful. We are looking for the best way to pay for mum's continuing care. She lives at home with a live-in carer and would like to stay there. She's 99. We've now got to a point where it may become necessary to use the house as collateral somehow, so that this can continue. What's best? Equity release? Second mortgage? Sell to someone who promises to not do anything with the house/land until after she's gone? I'm clueless about this. The three of us kids have Lasting Power of Attorney. Thanks for any pointers

ACG

You cant really get a secured loan/second mortgage unless there is a first mortgage. However even if there was, I think you might struggle going down that route. 

I think equity release might be the only option (although not really my thing so I could be wrong). 

MWT

Equity Release for sure I'd say, the pool of lenders will be a little limited due to her age, but still a viable option.

It will be necessary to take advice and the fees for that advice vary considerably from zero (some High St. lenders and StepChange) through to several thousand pounds from other advisors...

There is also the matter of suitability of the property and the value of the property, so it cannot be stated with certainty that this route is open without more details, but I would suggest a phone call to StepChange Financial Solutions is a good place to start as their advice is free, like all other Equity Release advisors they will get paid by the lender if you proceed with a product, but they do not charge you for their services as well, unlike most other advisors. 

 

Sea_Shell

I don't have any advice to add, but I just wanted to say how refreshing it is to read a post about how best to actually use Mum's house to provide the funds to care for Mum.

Most posts on the subject are about how NOT to have to use the house.