Buying half of mother's house

Wingi wrote: »

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).

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.

Wingi wrote: »

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.

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+...... :rotfl:But the general point remains if not all the examples!