Vulnerable Adult son needs a home

jojorose

So. I have three adult sons and one lives like a teenager in seedy digs living hand to mouth and financially because of his career (Care worker) and poor credit history he has no chance of getting a mortgage (so advisor told me today). He is also Bipolar and life is very hard for him.

So, I remarried at 55 and own 50 percent of a £350,000 bungalow. My husband owns the other half. He has no children or relatives. He has suggested that we take his half and use it now to buy my middle son a home. He thinks we can do this by equity release or a lifetime lease? Is this a good option? Are there others? We don't want increased expenditure at this time.

My husband is 70 I am 65 . He is well I have stage 4 cancer currently in NED.

ACG

With Equity release, the loan builds up month on month. If your husband needs care, he might not have the equity needed to afford decent care. I think that is worth consideration as I remember my gran needing care and the difference between good and bad is quite drastic.

But theoretically, yes you can do what you are after. You would need a broker qualified in equity release.

elsien

Can your son afford to run and maintain a home on the wages that he is earning now? Because buying it is only the start of the financial expenditure that might be coming his way. Particularly he has difficulty managing his finances, which I am surmising from his poor credit history.

I do think that is something that needs to be on the table for proper discussion as well.

gwynlas

Given his mental health issues it is admirable that he continues to work in what can be a very difficult role,

However it might not be in his long term interests to saddle him with the added responsibilities of home ownership having to deal with maintenance matters utility bills and council tax,

Is there any way in which he might qualify for a social tenancy?

You and your husband might need care in the future and any residual estate could still be bequeathed to your sons

twopenny

Yes you might consider putting heating, electric and water on regular payments that you make so take account of that.

He could maybe pay half towards it but to you.

Equity release leaves you and your husband vulnerable. Great news about your cancer 👏 and probably means it's why you want to get something in place for your son. Is there some way you could do it for less than half?

Vitor

I’d be very cautious about assuming you need to release a huge chunk of equity from your own home.

OP may need your housing equity and financial flexibility for many years.

Before considering a lifetime mortgage or home-reversion scheme, I’d get a second opinion from a whole-of-market broker experienced in adverse credit. The key question is what minimum help your son actually needs. A gifted deposit might solve the problem without putting your own long-term security at risk.

MWT

I will not comment further on the ..'is it a good idea..' point as you are best placed to decide that one.

First remember that the loan is against the whole of the property not just your husbands half.

… but from a practicality point of view you have a lot to consider, not least of which is that even if there is a health adjustment for you, at 70 your husband would still limit the amount you can draw out of the house below 50%

Also consider the 'deprivation of assets' point as that could become an issue.

Another issue is how you own the property, from your description it may be 'Tenants in Common', if so, consider that in the future even if you don't proceed with this plan now, if you should eventually predecease your husband and your half of the property passes to your sons, your husband would be unable to access equity release for his own care needs.

Having one half of the property in Trust or owned by someone other than the surviving partner is a block to raising funds in this way…

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sammyjammy

Does he claim all the benefits he is entitled to? Perhaps you could help him move to somewhere a little better/bigger? What does he think about it? Is he happy where he is or is it a constant struggle for him? Would he accept some help?

jojorose

My son does not like the benefit system and prefers to be as independent as possible. He only uses it during an episode. My son would be the Carer, that has already been promised. He manages his own affairs and the Bank of Mum hasn't taken a battering over the last few years.

Thanks for your comments.