Possibility of keeping my mum’s house

MrsArchieOscar

Hi there,

I am a MSE newbie and would love some advice as I’m totally baffled!

My mother is 93 and sadly, recently she has had to move out of her house due to her health and she is now living with me and my family and I are caring for her around work etc. I have power of attorney for her.

Her husband - my stepdad (who died in 2012) owned the house that they lived in and when he passed away, his will stated that my mum can live in it for however long but that herself, his two sons and me are holding the property as tenants in common. My mum’s share is 72%, his two sons have 11% each and mine is 6%. 

We are now in the position where we have to sell the house in order for the parties to “realise their  respective interests”. 

My absolute dream would be to buy my mum’s house and live in it and she has also said that she would love nothing more than this but I cannot get my head around if this would be possible. 

I own my own house, which I would be happy to sell but then I would still have a shortfall in terms of buying hers and I would not want to go down the mortgage route as I’m nearing retirement age. 

I am her only child and when she does pass away, which is unbearable to think about but seems ever-looming, all of her estate is being passed to only me. 

I would love to keep the house in our family but I’m so unsure especially in terms of taxes, the share of my stepdad’s sons and how it can all legally work, if it’s possible.

Thanks so much for anyone who’s managed to read this all - I hope I haven’t totally bored you and any advice is absolutely appreciated.

Thanks so much. 

Keep_pedalling

Surely you only have to buy out the 22% your mother can keep her share and you can move in together. Her share can then pass to you on her death. 

Alphatauri

I agree you only have to buy 22%. You then own 28% the property as TIC with your Mum 72%. You could also consider buying some of your Mum’s share so you say own it 50:50. This would release cash for your Mum to pay for care should she need it. 

The issues I can see are if sadly your mum needed bought in care or needed to go in a care home it is likely she would be considered to have funds to pay for this even though it is tied up in the house. The other is what happens if you (sorry) died before your Mum and the implications for your Mum. You do need to think about major life events for both you and your Mum.  You don’t mention if you have a partner of children again they need to be factored into potential life events. 

I think your intention is to sell your current home and to move into your Mums home so there would be no issues around you owning two homes. If you did buy and do some modernising/renovating before you sell your current home you may need to pay higher stamp duty, but some of this would be refunded once you did sell. 

IANAL so my advice is that it is worth you and your Mum each getting independent legal advice. Yes it’s paying twice but the solicitors need to be able to advise what is the best for each of you and that may not be the same. As an only child it is easier in this situation than having to consider how to be fair to siblings. 

msb1234

Does your mum have enough in savings to pay for care should she need to go into a home? 

MrsArchieOscar

Yes she does have enough in savings for her care should she need to go into a home.

Thank you all so much for your replies - this has all been really helpful. 

Savvy_Sue

It would, I think, be worth sounding out the 11%ers: I don't think they'd be able to block a sale (to you or anyone else), but if they were on-side I'm sure it would be easier. 

Get a valuation and see what the numbers look like.