Buying mums house and her staying with us

sheramber

Albermarle said:

You should consider what would happen if your Mum needed expensive care later in life/care home.
The local authority would take a dim view if they had to pay for her care, as she had given away most of her assets.
It is called deliberate deprivation of assets.
They could insist the family pays, and care homes can cost up to £80Kpa.

That might not be a problem

This will leave her pension trust fund (currently around 700k

She has my dad’s pension in the trust fund, which is hers tax free. She can withdraw from that, any amount tax free. She is going to draw a regular income from it. She worked in the bank so she has her own private pension from that, plus her state pension x

Sunflower_diamond

silvercar said:

“ She has spoken to our current mortgage provider (HSBC) who are happy to lend in this scenario and can port our mortgage with us using any equity to pay the 20k difference.”

It all looks fine, providing the above is true, I don’t understand why HSBC would be prepared to discuss your mortgage with your mother, so I’d want to verify this for myself (in your position). 

Hi there, the ‘She’ is my mortgage advisor. Not my mum. My mortgage advisor spoke to them, my mum is not involved in that aspect x

Sunflower_diamond

GDB2222 said:

What security does your mum have that you will let her live rent free in the annexe for the rest of her life?  At 67, you are looking at 20 years. A lot can change in that time. 

Hi, she isn’t looking to stay there rent free. She will be contributing to bills and paying her way. I’m not sure what you are looking for me to say, we have spoken about having something in writing that protects my mum should myself and my husband separate if that’s what you mean?

Sunflower_diamond

GDB2222 said:

Is it possible to split the granexe off the house, so each has a separate title? Mum can keep the granexe and sell the OP the rest of the house. Both parts would be hard to sell separately, though. 

Hello, no I don’t think this would be possible. They are attached, the door from “our” kitchen leads into her part of the house. We will use the utility room which is through there and will for a small kitchenette for her to use, microwaved kettle, toaster etc but she can use and access our kitchen if she needs to.

Sunflower_diamond

Albermarle said:

You should consider what would happen if your Mum needed expensive care later in life/care home.
The local authority would take a dim view if they had to pay for her care, as she had given away most of her assets.
It is called deliberate deprivation of assets.
They could insist the family pays, and care homes can cost up to £80Kpa.

Hello, she has over £700k in the pension trust fund plus her state and private pension.

lincroft1710

GDB2222 said:

Is it possible to split the granexe off the house, so each has a separate title? Mum can keep the granexe and sell the OP the rest of the house. Both parts would be hard to sell separately, though. 

Most planning permissions for granny annexes will not permit the annexe being separated from the main house