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  • FIRST POST
    • Wingi
    • By Wingi 13th Mar 18, 12:27 PM
    • 3Posts
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    Wingi
    Buying half of mother's house
    • #1
    • 13th Mar 18, 12:27 PM
    Buying half of mother's house 13th Mar 18 at 12:27 PM
    Me and my husband are selling our house to move in with my elderly mother, following my father's death.
    We will have to pay off the Equity Release mortgage on her house with money raised from the sale of ours.
    We will then have to change the Title Deed to show this.
    Will I be able to do this myself or will we have to engage a solicitor?
    (We are the sole beneficiaries of her will).
Page 1
    • Cakeguts
    • By Cakeguts 13th Mar 18, 8:52 PM
    • 4,410 Posts
    • 6,333 Thanks
    Cakeguts
    • #2
    • 13th Mar 18, 8:52 PM
    • #2
    • 13th Mar 18, 8:52 PM
    What are you planning to do if your mother has to move into a carehome because she needs 24 hour care? You will have to sell the house to get her half of the money out to pay carehome fees.
    • G_M
    • By G_M 13th Mar 18, 9:06 PM
    • 44,393 Posts
    • 52,681 Thanks
    G_M
    • #3
    • 13th Mar 18, 9:06 PM
    • #3
    • 13th Mar 18, 9:06 PM
    Me and my husband are selling our house to move in with my elderly mother, following my father's death.
    We will have to pay off the Equity Release mortgage on her house with money raised from the sale of ours.
    We will then have to change the Title Deed to show this.
    Will I be able to do this myself or will we have to engage a solicitor?
    (We are the sole beneficiaries of her will).
    Originally posted by Wingi
    1) how much is your mother's house worth?
    2) how much is the outstanding mortgage?
    3) after this transaction, do you (all) intend to own to own equal shares in your mother's property?
    4) if 1 above does not equal 2 above, and 3 above = yes, who will pay who how much?
    5) if 3 above is 'no', you'll need tto own as Tenants In Common, and create a Deed of Trust
    6) if 5 above happens, have you and your wife written wills, and who would you want to inherit your shares if you pre-deceased your mother?
    7) are you aware of 'Deprivation of Assets' (which may or may not apply here)?

    The answer to your question will be influenced by answers above.
    • RADDERS
    • By RADDERS 13th Mar 18, 10:43 PM
    • 220 Posts
    • 234 Thanks
    RADDERS
    • #4
    • 13th Mar 18, 10:43 PM
    • #4
    • 13th Mar 18, 10:43 PM
    What are you planning to do if your mother has to move into a carehome because she needs 24 hour care? You will have to sell the house to get her half of the money out to pay carehome fees.
    Originally posted by Cakeguts
    Depends on their ages, if over 60 they won’t have to.
    • AnotherJoe
    • By AnotherJoe 14th Mar 18, 5:57 AM
    • 9,597 Posts
    • 10,665 Thanks
    AnotherJoe
    • #5
    • 14th Mar 18, 5:57 AM
    • #5
    • 14th Mar 18, 5:57 AM
    Depends on their ages, if over 60 they won!!!8217;t have to.
    Originally posted by RADDERS
    They will eventually won't they ? Will there potentially be a charge put on the house ?
    Last edited by AnotherJoe; 14-03-2018 at 8:20 AM.
    • Wingi
    • By Wingi 14th Mar 18, 11:36 AM
    • 3 Posts
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    Wingi
    • #6
    • 14th Mar 18, 11:36 AM
    • #6
    • 14th Mar 18, 11:36 AM
    Thanks for all your responses.
    Answers to G_M first:
    1) About £550,000
    2) About half the value of the house once the redemption fee is included.
    5) Had presumed we would be Tenants in Common but wasn't sure if a solicitor was needed for this.
    6) Our wills state that if we predecease my mother everything goes to her.
    7) I've looked at the Deprivation Of Assets info but don't think it would apply as she isn't gifting us anything - we are buying it. Do you think I am wrong on this?

    I don't actually think she would be eligible for funded care unless she was on the NHS Continuing Healthcare programme. She has capital of about half the value of the house which generates her income. I presume that costs for care would come out of that before her share of the house would be considered?

    Forgot to say that both me and my husband are over 60.
    Last edited by Wingi; 14-03-2018 at 12:19 PM. Reason: forgot
    • G_M
    • By G_M 14th Mar 18, 12:32 PM
    • 44,393 Posts
    • 52,681 Thanks
    G_M
    • #7
    • 14th Mar 18, 12:32 PM
    • #7
    • 14th Mar 18, 12:32 PM
    Thanks for all your responses.
    Answers to G_M first:
    1) About £550,000
    2) About half the value of the house once the redemption fee is included.
    5) Had presumed we would be Tenants in Common but wasn't sure if a solicitor was needed for this.
    6) Our wills state that if we predecease my mother everything goes to her.
    7) I've looked at the Deprivation Of Assets info but don't think it would apply as she isn't gifting us anything - we are buying it. Do you think I am wrong on this?

    I don't actually think she would be eligible for funded care unless she was on the NHS Continuing Healthcare programme. She has capital of about half the value of the house which generates her income. I presume that costs for care would come out of that before her share of the house would be considered?

    Forgot to say that both me and my husband are over 60.
    Originally posted by Wingi
    In reverse... yes, if she has capital of £275K aprox (as well as the house) she wouldd not be eligible for care costs fo some time.

    If you are planning to contribute half the cost of the house by paying off the mortgage, then the fairest soluttion (to my mind) is to own as TIC, with mum owning 50% and you and your husband owning 25% each.

    You could

    1) sell your own property and move, then
    2) use the money to pay off mum's mortgage
    3) then complete forms TR1 etc (see below) to transfer ownership into 3 names
    4) draw up a Deed of Trust specifying the ownership shares, and what would happen in specificc circumstances
    5) write your own wills

    For 3) above:
    * AP1
    * TR1
    * ID1

    see forms and guides here:
    https://www.gov.uk/government/publications/registered-titles-whole-transfer-tr1

    For 4) above you could DIY, but I'd advise a solicitor. You should also consider potential future life events eg

    * what if you get divorced?
    * what if living with mum drives you potty or vice verse
    * what if you/husband get a new job far away and want/need to move
    * what if you get pregnant
    etc etc

    However unlikely, or distressing, some of these, far better to consider them early on. Once you are tied via joint ownership, becoming untied can be tricky for all concerned.

    edit: Ooops! Just noticed you are both 60+...... But the general point remains if not all the examples!
    • Wingi
    • By Wingi 15th Mar 18, 9:29 AM
    • 3 Posts
    • 0 Thanks
    Wingi
    • #8
    • 15th Mar 18, 9:29 AM
    • #8
    • 15th Mar 18, 9:29 AM
    Response to G_M - They won't let me quote your post as I'm new and may be a spammer!!!!!

    Thanks for this - I feel a lot clearer about what I'm doing now!
    I'll do the forms but will get a solicitor to do the Deed of Trust. I think all our current wills will cover the changes but I'll get them to check without committing to getting them updated!

    I had a laugh at what you'd suggested before realising our ages!!!!!

    Seriously though, it is after considering all our options for the past 18 months that we have come to this stage. It just seems the best all round option for a number of reasons.
    And as we've just signed the contract to sell our house I needed to focus on the practicalities.
    Thank you for your input.
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