Parents remortgaging issue

MWT

LCG81 said:

@Keep_pedalling value approx £230, outstanding £104k.  They will only loan approx £70k due to income and situation etc

I suspect that what your parents were told was that they were not old enough to get £104k released from property valued at £230k, rather than that they were not old enough for ER...

The youngest life would need to be close to 80 before it would be a possibility based on that valuation.

Your father's diagnosis can help reduce that age somewhat, but if your mother is healthy for her age, it may still not be enough unfortunately.

[Deleted User]

Maybe speak with a broker but they might need to downsize.

Brie

LCG81 said:

@Brie thank you for your reply, are you able to tell me more about the 0% loan repayable when the house is sold, what sort of loan is this called?

Family loan?  A lien?  Basically if you (& any siblings perhaps) had the money available you could give it to your parents and not expect any money back and you would not charge them any interest.  You would get something drawn up by a solicitor to say "I have loaned mom and dad £X and will not charge interest and will not expect the money to be repaid until the house is sold".  

Granted I said this based on your initial post where you said the amount needed was £35-40k.  I can see now that they would still need a mortgage as well.  The mortgage provider would need to be told that the money from you was an outright gift which you did not expect to get back rather than you expecting it when the house was sold.  Whether your solicitor would advise you to state this is writing is a bit shaky.  

The alternative is for you to go on to the mortgage as well which of course could make you liable for the full amount if your parents fail to keep up their payments.  It also raises the question of CGT on a second home for you plus what impact this would have on you personally - having to declare the house as an asset in cases of divorce etc.  

fyi - where I have said you I have meant through out you and/or any siblings.

Hoenir

LCG81 said:

 Or is it simply sell up and downsize? 

Looking into the future. What's the best course of action for your mother?