Secured loan

spooneheadz

Hi all,

Me and my partner are in crushing debt. She has a house as an asset with 50% of the title to the deeds and her nana being the other 50%. we would like to get a secured loan to the 50% of the asset she owns but in order to do so we need her nana to also sign any paperwork to give us her permission. her nana is in a care home with dementia and we don't want to get her to sign anything as this seems fraudulent and wrongdoing. Would anyone know if there is a way around this or any other options we have with the asset (home)?

Nasqueron

The advice is always to not to turn unsecured debt into a debt secured on your home because you should lose it.

Do you or someone else have power of attorney over her affairs?

Keep_pedalling

If her nana is now in a care home surely the sale of the house is the solution unless anyone else is living there.

Flugelhorn

definitely sounds like nanna's house needs selling - presumably she will need to at some point to pay the care home fees. 

this would be done by the person who has power of attorney, if there is no-one then it goes to the court of protection,

Nanna cannot sign for a loan if she does not have capacity to understand what she is doing 

spooneheadz

thank you for the quick replies, I should have mentioned me and my partner who has her name on the deeds have been living here for a year. I managed to gather some information and someone the family knows has power of attorney. we are just looking fora way to use the house to consolidate all of our debts and begin somewhat fresh as we are barely serving month to month. 

spooneheadz

Flugelhorn said:

definitely sounds like nanna's house needs selling - presumably she will need to at some point to pay the care home fees. 

this would be done by the person who has power of attorney, if there is no-one then it goes to the court of protection,

Nanna cannot sign for a loan if she does not have capacity to understand what she is doing 

Her care home fees are already being taken care of. Not sure if it's council/ government that's paying for them but the house does not need to be used in any way to pay for her care fees. We have already been to solicitors and fought for the right to keep the house in full and managed to do so. 

pdel61

spooneheadz said:

Flugelhorn said:

definitely sounds like nanna's house needs selling - presumably she will need to at some point to pay the care home fees. 

this would be done by the person who has power of attorney, if there is no-one then it goes to the court of protection,

Nanna cannot sign for a loan if she does not have capacity to understand what she is doing 

Her care home fees are already being taken care of. Not sure if it's council/ government that's paying for them but the house does not need to be used in any way to pay for her care fees. We have already been to solicitors and fought for the right to keep the house in full and managed to do so. 

I would have thought if the council are paying for the care fees, they will be expecting the money back from the 50% owned by Nana on her death or on the sale of the house.

Flugelhorn

pdel61 said:

spooneheadz said:

Flugelhorn said:

definitely sounds like nanna's house needs selling - presumably she will need to at some point to pay the care home fees. 

this would be done by the person who has power of attorney, if there is no-one then it goes to the court of protection,

Nanna cannot sign for a loan if she does not have capacity to understand what she is doing 

Her care home fees are already being taken care of. Not sure if it's council/ government that's paying for them but the house does not need to be used in any way to pay for her care fees. We have already been to solicitors and fought for the right to keep the house in full and managed to do so. 

I would have thought if the council are paying for the care fees, they will be expecting the money back from the 50% owned by Nana on her death or on the sale of the house.

could be she has continuing care funding 

Hoenir

Starting afresh may well be the answer if you've existing financial problems. 

Brie

We have already been to solicitors and fought for the right to keep the house in full and managed to do so. 

I don't understand this - why did you need to fight for the right to stay in the house?

MEM62

This is a non-starter.  Even if your Nanna had capacity she would be ill advised to put her asset at risk so that you can deal with your debts.  Frankly, in you position I would not even be asking.