Selling 2 houses to buy 1 big house with an annex

redstripeysocks

My parents and paternal grandmother are thinking of selling both of their houses and moving into one big house with a granny annex for my grandmother. I would also being moving with them (young single adult).

My grandmother owns her house and my parent's have a mortgage on their house. My father is an only child and he is also Power of Attorney for my grandmother.

Is this possible or is there too many implications that it is not worth pursuing with?

Keep_pedalling

Is the plan for your GM to be a registered owner? Does she have her full mental faculties? Will a mortgage be required?

Flugelhorn

there is another post here where someone had an annexe which was no longer needed and were now going to be charged 2nd home council tax for it 

Bookworm105

as above, depends if GM is able to take the decision for herself, otherwise, on paper, it potentially looks to be serving father's interest a bit too much by spending GM's money

Brie

If your parents are going to be the only mortgage holders on the new place then granny will likely need to provide evidence that she has gifted them whatever money is needed to enable them to make the purchase.  Not a problem in itself if she is still of sound mind. 

The problem may come later when she may need more care than is possible to get at home and she needs to go into a care home.  How will that be financed?  If she has plenty of cash then it may not be a problem but if she needs help from the local council they may look at her "giving her money away" to your parents as deprivation of assets and want to either have the house sold or put a lien on it so they can recoup their money when the house is eventually sold.  Insistence at it being sold might only happen if your parents are under 60 at that point.  

The other big point to consider is how able is granny and the rest of you?  She may be fine now but in 5 years she may need a lot of assistance.  Now again - if she has plenty of cash care can be purchased.  Otherwise it will likely come down to your mom.  Women take the brunt of this work and also it may be more pleasant for granny to be looked after for some things by another female particularly personal care.  Caring for the elderly is much like caring for children in that it's hard work and often a 24/7 job without holidays.   

redstripeysocks

Thank you so much for all your insight. The idea would be that my parents would pay off the rest of their mortgage with the sale of their house then there would be no mortgage on the new bigger house. 

sheramber

 But is  granny contributing to the purchase price?