Paying off dad's mortgage before he loses his home?

charley1

RAS said:

charley1 said:

.................. he has finally agreed to let me help (after years of me trying) and has now admitted he has no hot water and no power to any electrical sockets. ............Recently he has asked for some money to help cover his mortgage payments (I have done this in the past) and I agreed to again but this time only if he would finally let me help with everything, and he is now agreed to this, he hasn't opened letters in years and after getting his credit report up online it shows he has had ccjs added to his mortgage over the last 4 years meaning it's actually going up not down

Can you check how the flat is "powered"? Some are supplied via communal heating systems, and even communal power for which the leasee pays pro rata. If that is the case, the leasor may have disconnected the power to the flat if dad hasn't been paying the bills?

So it may be a matter of sorting the debts and a check of the system in the flat to get power back rather than overhaul and replacement?

I am writing to land registry today to access the lease information as advised by someone else on here, hopefully from there I can find out about things like that and contact the lease company directly, it's all such a mess but he has made the first step in agreeing to me helping so let's hope one way or another things will be sorted for him 🤞🏻. 

GDB2222

charley1 said:

RAS said:

charley1 said:

.................. he has finally agreed to let me help (after years of me trying) and has now admitted he has no hot water and no power to any electrical sockets. ............Recently he has asked for some money to help cover his mortgage payments (I have done this in the past) and I agreed to again but this time only if he would finally let me help with everything, and he is now agreed to this, he hasn't opened letters in years and after getting his credit report up online it shows he has had ccjs added to his mortgage over the last 4 years meaning it's actually going up not down

Can you check how the flat is "powered"? Some are supplied via communal heating systems, and even communal power for which the leasee pays pro rata. If that is the case, the leasor may have disconnected the power to the flat if dad hasn't been paying the bills?

So it may be a matter of sorting the debts and a check of the system in the flat to get power back rather than overhaul and replacement?

I am writing to land registry today to access the lease information as advised by someone else on here, hopefully from there I can find out about things like that and contact the lease company directly, it's all such a mess but he has made the first step in agreeing to me helping so let's hope one way or another things will be sorted for him 🤞🏻. 

You make the application on form OC2, and you must send the fee of £7. I can’t remember the last time I filled out a cheque!

charley1

GDB2222 said:

charley1 said:

GDB2222 said:

I know that the op is trying to do the best for her dad, but she is very close to Elder Abuse.

She proposes to buy a flat potentially worth £180k, and in return she will pay £34k for the mortgage, say £20k to extend the lease and say £20k on renovation. So, that looks like a cool £100k profit. What exactly will the OP’s brother think about this? 

Besides that, the sale by the father and lease back to him is governed by the FCA, so going ahead without their authority is illegal. 

Ouch thats harsh but the reason I am posting on here is for impartial advice so do appreciate your take on the situation, my brother is the same as me he just wants our dad to have a safe home with no fear of it being taken from him, I certainly don't want and will not do anything illegal so it's good to know it could be seen in that way as it is definitely not my intention. I only want to protect any money I put in and if it's possible to keep the flat in his name where my money would be paid back first before any future creditors then I would 100% be happy to do this. I will definitely be making some calls this week to the local council as well to see if over 55s social housing is an option for him 🤞🏻

Sorry about that. I am not known for tact in my family.

I am all in favour of you helping your dad out, and I appreciate it is a difficult situation. Nevertheless, you need to ensure that you are seen not to profit from this. A loan to sort him out can be secured as a charge against the property, so you will be paid out before anyone else. 

I suggest that you do nothing without your brother's agreement. And ideally your father should have independent legal advice. 

Capital Gains Tax. At the moment, any gain in value on the flat is exempt from CGT, as it is owned by dad, and it’s his home. If you own it, you will be liable for CGT on any gain you make. So, your original plan is very poor from a tax perspective. 

No need to apologise, I really do want other people's perspective and what you said does make sense. My brother is fully involved in all the discussions and wants to help as well so all good there. Totally agree my dad should and will get legal advice as whatever ends up happening totally needs to be what's best for him. If it ends up being me paying his mortgage off and putting a charge on the flat I am totally up for that, though I also do think social housing with support in the long run could be what's best for him, if he can sell his flat and end up with some money to live on that would be an even better outcome for him and I would feel so much better knowing he has some cash to live on. 

GDB2222

As he has a flat already, he may be low down the list for social housing. 

Think very carefully before paying for a sheltered apartment, eg McCarthy and Stone. T he service charges are eye watering, and they are difficult to sell. 

DE_612183

I was in a similar position with my brother - after my mother died he lived in the family bungalow for about 8 years and I didn't have access - but I could see the property deteriorating and going to ruin. In the end when he got admitted to hospital I got in and found all electric fused and water pipes in attic leaking.

In the end I managed to convince him to move out and into a new ish flat.

Communications were not great - but it was worthwhile in the end, and I think he was happier.

sheramber

What income does your father have?

You said he was self employed. Is he still working?

Is he eligible for any benefits?

At 65 he will not have state pension yet. You can get a pension forecast here   https://www.gov.uk/check-state-pension

charley1

GDB2222 said:

As he has a flat already, he may be low down the list for social housing. 

Think very carefully before paying for a sheltered apartment, eg McCarthy and Stone. T he service charges are eye watering, and they are difficult to sell. 

This is what I was originally thinking that he wouldn't be considered as he has a flat, which is where me paying off his mortgage came into it, but the fact he is clearly vulnerable and cannot afford his mortgage anymore will hopefully be taken into consideration 🤞🏻 I am going to call the local authorities anyway definitely can't hurt to ask, if he sells the flat with its low lease and bad condition it definitely won't make him anywhere near enough to purchase anything else outright, though ive just had a thought, I could look into paying for a lease extension instead of paying off the mortgage, get the flat upto a much better standard before selling 🤔that way he may have enough to buy a smaller flat outright after clearing his remaining mortgage with the proceeds. Could I then put a charge on his new mortgage free property for the money I use to extend his lease? 

charley1

sheramber said:

What income does your father have?

You said he was self employed. Is he still working?

Is he eligible for any benefits?

At 65 he will not have state pension yet. You can get a pension forecast here   https://www.gov.uk/check-state-pension

Not a lot, he admitted he has only been earning around £100 a week tops for the last 3 months, he is a tree surgeon but in all honesty can no longer physically do the job, and is struggling to get much work now. I have suggested scaling back and maybe advertising to do light gardening work/lawn mowing etc, have offered to buy him any equipment he would need to get started. He has always worked and not working isn't something he wants, he always said he would work til he drops (his words). Thanks for the links, I will check them out. 

RAS

charley1 said:

GDB2222 said:

As he has a flat already, he may be low down the list for social housing. 

Think very carefully before paying for a sheltered apartment, eg McCarthy and Stone. T he service charges are eye watering, and they are difficult to sell. 

This is what I was originally thinking that he wouldn't be considered as he has a flat, which is where me paying off his mortgage came into it, but the fact he is clearly vulnerable and cannot afford his mortgage anymore will hopefully be taken into consideration 🤞🏻 I am going to call the local authorities anyway definitely can't hurt to ask, if he sells the flat with its low lease and bad condition it definitely won't make him anywhere near enough to purchase anything else outright, though ive just had a thought, I could look into paying for a lease extension instead of paying off the mortgage, get the flat upto a much better standard before selling 🤔that way he may have enough to buy a smaller flat outright after clearing his remaining mortgage with the proceeds. Could I then put a charge on his new mortgage free property for the money I use to extend his lease? 

Depending where he is, there may be over 55s accommodation, maybe housing association, maybe local almshouse/ charity. Certainly other folks on MSE have got it or there relative has. Even if they were previous homeowners in some cases.

KxMx

Generally sheltered social housing is easier to obtain than standard social housing.
Different criteria and all that. 

My Mum now lives in sheltered housing, we both benefit from that frankly as she has other sources of help besides me. Gives her more independence and enables us to have more of a parent/child relationship and less of a carer dynamic.
My own health isn't great so the less I have to cope with the better. 

She has a pendant alarm and pull cords around the flat, the service is included in her rent.