Getting a mortgage with a deposit contribution from parents who *will* live in the property with me

kingstreet

Anticyclonic said:

kingstreet said:

MWT said:

kingstreet said:

I'm thinking about the residual equity following the sale. They are effectively giving it away. It's difficult to quantify "foreseeable need" as well.

... and there is also the difficult fact that if care is needed and the equity in the property cannot be released (obviously not possible for a t least the next 20 years given age of the OP) then the quality of care available is going to be limited.

Agreed. What you can get for the "A List" price around here in Staffordshire isn't great according to my Social Worker (Adult & Older People) spouse.

What is the "A List" price?

The price the local authority is prepared to pay for residential or nursing care without a "top-up" from relatives.

silvercar

Your parents are relatively young and don’t have any care needs at present. I can’t see deprivation of assets being an issue many years down the line. Deprivation of assets is concerned with foreseeable events and immediate needs, not what may or may not happen in the future.

As you say, the Bank of Mum and Dad is a well known source of deposit in current times.

MWT

silvercar said:

Your parents are relatively young and don’t have any care needs at present. I can’t see deprivation of assets being an issue many years down the line. Deprivation of assets is concerned with foreseeable events and immediate needs, not what may or may not happen in the future.

Agreed, deprivation of assets is not really a big risk, it is more about making sensible provision for future care costs given there will be little ability to access equity in the property for some years to come.

So the suggestion to go for a more modest home and preserve some capital is a sensible one.