How to buy a house for son with disabilities

MWT

https://forums.moneysavingexpert.com/discussion/comment/82012739#Comment_82012739

Agree with ACG, you need financial advice as well as legal and mortgage as you are entering into a minefield of complexities both short and long term.

saajan_12

https://forums.moneysavingexpert.com/discussion/comment/82012739#Comment_82012739

How old are you? A normal residential mortgage on your home or even a regulated BTL on the new property (since the occupant would be family) would be assessed on your income. Borrowing 5x income is at the top end of most lenders criteria and would usually come with a longer term, which you may not get at retirement age.

Equity release may be possible but they make their money by taking a lot of the equity to repay the loan and compound interest, so there may be little left for your other son.

Personally I would downsize and use the money to buy outright or move into a property with a granny annex for son.

MWT

https://forums.moneysavingexpert.com/discussion/comment/82013101#Comment_82013101

Equity release may be possible but they make their money by taking a lot
of the equity to repay the loan and compound interest, so there may be
little left for your other son.

Equity release comes in many forms, including options to pay the interest as you go which makes it more like a typical interest only mortgage, just without an end date other than death or entry into long-term care.

The capital component is a known and fixed amount, the variable part is the interest, so pay that off as you go and it is a very predictable product, but the big unknown is of course any care costs and whichever route is followed that is the most likely threat to the other sons inheritance.

Also don't fall into the trap of going with one of the companies offering to protect your house from care fees by using a trust, they can be both misleading and expensive and still not deliver what you thought you were getting.

Real financial and legal advice should be sought, and if down-sizing is planned then do that first, or do it at the time of the move to a smaller property and use equity release as part of the purchase of that final property to release enough cash if needed.

N.B. if going with the 'granny annex' route then equity release will not be an option. … and possibly not what is wanted long-term anyway if the aim is to give as much independence as possible for the future.

Alimsepie

we are hoping that he will agree to that

kingstreet

I once saw a presentation by this firm which specialises in financing shared ownership housing for the disabled. I've no experience of them, so no recommendation should be implied;-

https://mysafehome.info/

Alimsepie

One of the previous posts warned against this type of shared ownership, but all suggestions are welcomed and I’ll have a look.

GibbsRule_No3

Is the AirBnB paid off, or does that have a mortgage still? Where will that go after you both pass?