Buying parents house.

BoGoF

It's irrelevant what they do with their share. You are choosing to put yours into buying the property.

I'm assuming it's your mother wishes to split estate equally. Maybe you should respect those wishes otherwise your grievance is with her.

_Penny_Dreadful

slenderkitten said:

Keep_pedalling said:

slenderkitten said:

Schwarzwald said:

You seem to have some fundamental problems with following this.

if there is £150k in value that you 3 split equally, everyone gets £50k.
forget about the fact that you want to buy your MUM’s house, it doesnt matter. You want to be A house. So if you use the 50k for a deposit on a house plus mortgage your money is stuck in the equity of the house.
What your siblings do with their money doesnt really matter to you / is none of your business. They might end up buying another house too, so how does that matter?

you all get 50k, you decide to buy a property with it.

I just feel aggrieved to be honest given that I do the majority of the care, they have a life I dont, I have to keep an eye on her in case she falls or something else happens I've installed cameras recently for this purpose.

They won't be buying any properties with it. It's lost that theirs ps debt free nod I buy this house and mine wouldn't be. 

It seems that you and your mother have a mutual benefit from the arrangement. You give her care and security and she provides a roof over your head.

You seem very confused on the need for a deposit in the event you want to buy out your siblings share of the house on your mother’s death, when the reality is very simple. You would not need a deposit as you would have at least 1/3rd of the equity from your inheritance.

I don't know about this equity situation you mentioned you say, I just understand buying a house from a traditional percentage deposit situation. Seems you are telling me there are different ways to buy a house which I did not know about?  

People have been telling you for 4 pages now that you can use the inherited equity as your deposit. 

slenderkitten

_Penny_Dreadful said:

slenderkitten said:

Keep_pedalling said:

slenderkitten said:

Schwarzwald said:

You seem to have some fundamental problems with following this.

if there is £150k in value that you 3 split equally, everyone gets £50k.
forget about the fact that you want to buy your MUM’s house, it doesnt matter. You want to be A house. So if you use the 50k for a deposit on a house plus mortgage your money is stuck in the equity of the house.
What your siblings do with their money doesnt really matter to you / is none of your business. They might end up buying another house too, so how does that matter?

you all get 50k, you decide to buy a property with it.

I just feel aggrieved to be honest given that I do the majority of the care, they have a life I dont, I have to keep an eye on her in case she falls or something else happens I've installed cameras recently for this purpose.

They won't be buying any properties with it. It's lost that theirs ps debt free nod I buy this house and mine wouldn't be. 

It seems that you and your mother have a mutual benefit from the arrangement. You give her care and security and she provides a roof over your head.

You seem very confused on the need for a deposit in the event you want to buy out your siblings share of the house on your mother’s death, when the reality is very simple. You would not need a deposit as you would have at least 1/3rd of the equity from your inheritance.

I don't know about this equity situation you mentioned you say, I just understand buying a house from a traditional percentage deposit situation. Seems you are telling me there are different ways to buy a house which I did not know about?  

People have been telling you for 4 pages now that you can use the inherited equity as your deposit. 

_Penny_Dreadful said:

slenderkitten said:

Keep_pedalling said:

slenderkitten said:

Schwarzwald said:

You seem to have some fundamental problems with following this.

if there is £150k in value that you 3 split equally, everyone gets £50k.
forget about the fact that you want to buy your MUM’s house, it doesnt matter. You want to be A house. So if you use the 50k for a deposit on a house plus mortgage your money is stuck in the equity of the house.
What your siblings do with their money doesnt really matter to you / is none of your business. They might end up buying another house too, so how does that matter?

you all get 50k, you decide to buy a property with it.

I just feel aggrieved to be honest given that I do the majority of the care, they have a life I dont, I have to keep an eye on her in case she falls or something else happens I've installed cameras recently for this purpose.

They won't be buying any properties with it. It's lost that theirs ps debt free nod I buy this house and mine wouldn't be. 

It seems that you and your mother have a mutual benefit from the arrangement. You give her care and security and she provides a roof over your head.

You seem very confused on the need for a deposit in the event you want to buy out your siblings share of the house on your mother’s death, when the reality is very simple. You would not need a deposit as you would have at least 1/3rd of the equity from your inheritance.

I don't know about this equity situation you mentioned you say, I just understand buying a house from a traditional percentage deposit situation. Seems you are telling me there are different ways to buy a house which I did not know about?  

People have been telling you for 4 pages now that you can use the inherited equity as your deposit. 

Ok I get it now, just wish people would understand that in new to this, which I did state at the beginning.

We already have a WILL in place and also LPA there's no dispute, the poster above you are writing things that is not in the equation, I can't put into words what it has cost me to move 300 miles only put it into multiple thousands of ££  more than what I have described on this thread.

Thanks for your input I'll look elsewhere for help and information into the equity situation. 

kimwp

@slenderkitten, I will try to explain how mortgages and deposits work - 

A mortgage is a secured loan. A secured loan means that the lender has the right to sell your property (in this case, it would be your house) to recoup their money if you don't meet payments. 

If the mortgage lender needs to sell your property to get their money back, they will sell it at a lower price to sell it quickly. So they want to lend less to you than the property is worth at full value so they will get all of their money back, even if you stop paying them and they have to sell it. This is why people need a deposit - so the mortgage lender reduces the risk of losing money if you stop paying and they have to sell the property to get their money back. This is also why the interest rates are better with a bigger deposit - the lender has less risk of losing money.

In your situation, when your mum passes, you will* already own 1/3 of the property outright and you will be asking for a mortgage (loan secured against your property) that is 2/3 of the property value to buy out your siblings ownership. If you stop paying, the lender has a right to sell your home to get their money back and they can sell at 2/3 of the value to get a quick sale and still get all of their money back. So you don't need to give them a cash deposit as well to get a mortgage.

Hope that helps. 

*Edited to add "when your mum passes, you will" to make it clearer 

slenderkitten

kimwp said:

@slenderkitten, I will try to explain how mortgages and deposits work - 

A mortgage is a secured loan. A secured loan means that the lender has the right to sell your property (in this case, it would be your house) to recoup their money if you don't meet payments. 

If the mortgage lender needs to sell your property to get their money back, they will sell it at a lower price to sell it quickly. So they want to lend less to you than the property is worth at full value so they will get all of their money back, even if you stop paying them and they have to sell it. This is why people need a deposit - so the mortgage lender reduces the risk of losing money if you stop paying and they have to sell the property to get their money back. This is also why the interest rates are better with a bigger deposit - the lender has less risk of losing money.

In your situation, you already own 1/3 of the property outright and you will be asking for a mortgage (loan secured against your property) that is 2/3 of the property value to buy out your siblings ownership. If you stop paying, the lender has a right to sell your home to get their money back and they can sell at 2/3 of the value to get a quick sale and still get all of their money back. So you don't need to give them a cash deposit as well to get a mortgage.

Hope that helps. 

We don't own it it's still my mums it's just in the will to for all of us. 

bobster2

slenderkitten said:

kimwp said:

@slenderkitten, I will try to explain how mortgages and deposits work - 

A mortgage is a secured loan. A secured loan means that the lender has the right to sell your property (in this case, it would be your house) to recoup their money if you don't meet payments. 

If the mortgage lender needs to sell your property to get their money back, they will sell it at a lower price to sell it quickly. So they want to lend less to you than the property is worth at full value so they will get all of their money back, even if you stop paying them and they have to sell it. This is why people need a deposit - so the mortgage lender reduces the risk of losing money if you stop paying and they have to sell the property to get their money back. This is also why the interest rates are better with a bigger deposit - the lender has less risk of losing money.

In your situation, you already own 1/3 of the property outright and you will be asking for a mortgage (loan secured against your property) that is 2/3 of the property value to buy out your siblings ownership. If you stop paying, the lender has a right to sell your home to get their money back and they can sell at 2/3 of the value to get a quick sale and still get all of their money back. So you don't need to give them a cash deposit as well to get a mortgage.

Hope that helps. 

We don't own it it's still my mums it's just in the will to for all of us. 

kimwp was referring to what happens later on.

It's very simple - during the period of administration of your mother's estate the house will remain as part of the estate. Then...

You apply for a £100,000 mortgage - which will be secured against the house. You give your siblings £50,000 each and you end up owning a £150,000 house with a mortgage of £100,000.

So everyone will have £50,000. 2 siblings will have that as cash, you will have your £50,000 as equity in the property that you own in your sole name.

millie

. 

Thanks for your input I'll look elsewhere for help and information into the equity situation. 

It would probably be better if you looked elsewhere as you do not like the truthful answers you are getting. You seem to believe that you are entitled to more than your siblings because you are doing all the caring. Surely your mother can see this and is up to her what to do with her money. The fact that your siblings a better off financially than you has no bearing on anything.

jonnydeppiwish!

slenderkitten said:

Schwarzwald said:

You seem to have some fundamental problems with following this.

if there is £150k in value that you 3 split equally, everyone gets £50k.
forget about the fact that you want to buy your MUM’s house, it doesnt matter. You want to be A house. So if you use the 50k for a deposit on a house plus mortgage your money is stuck in the equity of the house.
What your siblings do with their money doesnt really matter to you / is none of your business. They might end up buying another house too, so how does that matter?

you all get 50k, you decide to buy a property with it.

I just feel aggrieved to be honest given that I do the majority of the care, they have a life I dont, I have to keep an eye on her in case she falls or something else happens I've installed cameras recently for this purpose.

They won't be buying any properties with it it is lost easy money for them. It's just went some cash for future joint replacement that I know I will need and some for a rainy day/retirement money. 

And that is your choice that you made, not your siblings. 

It’s ’easy’ money for you too as you haven’t paid rent, just part of the bills. 🤦 

sheramber

When your mother dies you will own 1/3 of the house and your two siblings will own 1/3 each. 1/3 you , 1/3 sibling A, 1/3 sibling B. 

If you want to stay in the house you will have to buy each of you siblings share.

you have 1/3 share worth £50k.

you arrange a mortgage to cover what you pay each sibling for their share - £50k each.

You need to check if you can get a mortgage for £100k.That will depend on your income.

If you want you £50k in cash, then the house would need to be sold so you each got your £50k .

What your siblings do with their 50k is not relevant.

Being aggrieved about your circumstances does not change  the legal position.   That is a private matter to sort out direct  with your siblings.

 

Jude57

slenderkitten said:

_Penny_Dreadful said:

slenderkitten said:

Keep_pedalling said:

slenderkitten said:

Schwarzwald said:

You seem to have some fundamental problems with following this.

if there is £150k in value that you 3 split equally, everyone gets £50k.
forget about the fact that you want to buy your MUM’s house, it doesnt matter. You want to be A house. So if you use the 50k for a deposit on a house plus mortgage your money is stuck in the equity of the house.
What your siblings do with their money doesnt really matter to you / is none of your business. They might end up buying another house too, so how does that matter?

you all get 50k, you decide to buy a property with it.

I just feel aggrieved to be honest given that I do the majority of the care, they have a life I dont, I have to keep an eye on her in case she falls or something else happens I've installed cameras recently for this purpose.

They won't be buying any properties with it. It's lost that theirs ps debt free nod I buy this house and mine wouldn't be. 

It seems that you and your mother have a mutual benefit from the arrangement. You give her care and security and she provides a roof over your head.

You seem very confused on the need for a deposit in the event you want to buy out your siblings share of the house on your mother’s death, when the reality is very simple. You would not need a deposit as you would have at least 1/3rd of the equity from your inheritance.

I don't know about this equity situation you mentioned you say, I just understand buying a house from a traditional percentage deposit situation. Seems you are telling me there are different ways to buy a house which I did not know about?  

People have been telling you for 4 pages now that you can use the inherited equity as your deposit. 

_Penny_Dreadful said:

slenderkitten said:

Keep_pedalling said:

slenderkitten said:

Schwarzwald said:

You seem to have some fundamental problems with following this.

if there is £150k in value that you 3 split equally, everyone gets £50k.
forget about the fact that you want to buy your MUM’s house, it doesnt matter. You want to be A house. So if you use the 50k for a deposit on a house plus mortgage your money is stuck in the equity of the house.
What your siblings do with their money doesnt really matter to you / is none of your business. They might end up buying another house too, so how does that matter?

you all get 50k, you decide to buy a property with it.

I just feel aggrieved to be honest given that I do the majority of the care, they have a life I dont, I have to keep an eye on her in case she falls or something else happens I've installed cameras recently for this purpose.

They won't be buying any properties with it. It's lost that theirs ps debt free nod I buy this house and mine wouldn't be. 

It seems that you and your mother have a mutual benefit from the arrangement. You give her care and security and she provides a roof over your head.

You seem very confused on the need for a deposit in the event you want to buy out your siblings share of the house on your mother’s death, when the reality is very simple. You would not need a deposit as you would have at least 1/3rd of the equity from your inheritance.

I don't know about this equity situation you mentioned you say, I just understand buying a house from a traditional percentage deposit situation. Seems you are telling me there are different ways to buy a house which I did not know about?  

People have been telling you for 4 pages now that you can use the inherited equity as your deposit. 

Ok I get it now, just wish people would understand that in new to this, which I did state at the beginning.

We already have a WILL in place and also LPA there's no dispute, the poster above you are writing things that is not in the equation, I can't put into words what it has cost me to move 300 miles only put it into multiple thousands of ££  more than what I have described on this thread.

Thanks for your input I'll look elsewhere for help and information into the equity situation. 

I feel it important to point out that 'we' don't have a Will. Your mother has made HER Will and can change it at any time to vary the bequests she leaves. She could choose to leave everything, house included, to the local cats home and as long as she has mental capacity when she signs it, that Will would be valid.

It's also important to understand that your mother could, at some point, need residential care. It's possible you, with your own health issues, might not be able to manage her care at home. It's possible that the house might have to be sold to fund the care your mother needs and no, it's not possible to safeguard 'your' inheritance from that because the local authority will certainly make sure any assets your mother has are, rightly, used to fund her care. And if course, as you know, those with POA must always act in the best interests of the person they have POA for.