Re-mortgaging my house to help mum buy her own home

Sapindus

sheramber said:

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Presumably, the siblings hope to  inherit the house in due course. So will get their money back then. 

The only complication they need to consider is that should mother need care  the house value may be little or none when the time comes. 

That's not just a little complication, it's a potential disaster waiting to happen.  It's effectively a loan, and the advice usually given is don't loan money you can't afford to lose.

I think mum needs to be encouraged to think again about the equity release or lifetime mortgage or whatever it's called and the children get to keep their money from the start instead of gambling that they'll "get it back".  

sheramber

Sapindus said:

sheramber said:

i

Presumably, the siblings hope to  inherit the house in due course. So will get their money back then. 

The only complication they need to consider is that should mother need care  the house value may be little or none when the time comes. 

That's not just a little complication, it's a potential disaster waiting to happen.  It's effectively a loan, and the advice usually given is don't loan money you can't afford to lose.

I think mum needs to be encouraged to think again about the equity release or lifetime mortgage or whatever it's called and the children get to keep their money from the start instead of gambling that they'll "get it back".  

That is their decision to make.

Murphybear

HampshireH said:

This plan sounds like it won't end well.

You are going to give away all your savings AND get a loan or mortgage so you'll be Co owner of another property. 

You'll pay extra stamp duty at the beginning and depending on any increase in value you may have Capital Gains Tax on your part on disposal. Not only that but you'd also own with at least 1 other sibling to complicate things further.

I can't still the attraction here or what benefit you would get.

What about you? You've saved for a reason what if you need the money? Also what happens eventually when mum passes away and you are solely handling the estate as your UK based with siblings who want their money back but the value has perhaps decreased/swallowed up in legal fees and no one gets what they put in back?

Rather than buying has your mum considered independent living in sheltered accommodation? I don't mean a care home set up but self serving flat or bungalow owner by the council or housing association where there is usually a social or affordable rent and less uncertainty around security of tenure.

Good idea.  I live in sheltered housing, it’s brilliant.  As well as individual flats there is a massive communal lounge with its own kitchen area.  We’ve had some riotous parties  .         

Yorkie1

As an aside, have you checked with your mum whether she is entitled to pension credit? (or any other form of benefit payment)