Inheritance Tax/Care Home Fees/Depravation Assets

SpideressUK · 13 July 2018 at 9:14AM

My mum's house is on the market now but is there any way to get her £65K (to be paid back when the house sells) so she can compete for this flat that is near me - there is already one offer in against it but not yet accepted. I phoned my mortgage provider to see if it can be added onto my mortgage (and then that extra £65K be repaid in full once her house sells but they say the rules changed and you cannot borrow more money against your mortgage (it is to protect you from losing your home).

I looked at "Bridging Loans" and it seems quite complicated - I think £1,300 ish in set up fees then interest to pay (presumably per month) @ 0.49% or something which I assume would be 0.49% of £65,000 so she would have to find £318 per month until that £65K could be paid off from the house sale? Are there any other options for her to raise that kind of money?

Keep_pedalling · 13 July 2018 at 9:38AM

SpideressUK wrote: »

My mum's house is on the market now but is there any way to get her £65K (to be paid back when the house sells) so she can compete for this flat that is near me - there is already one offer in against it but not yet accepted. I phoned my mortgage provider to see if it can be added onto my mortgage (and then that extra £65K be repaid in full once her house sells but they say the rules changed and you cannot borrow more money against your mortgage (it is to protect you from losing your home).

I looked at "Bridging Loans" and it seems quite complicated - I think £1,300 ish in set up fees then interest to pay (presumably per month) @ 0.49% or something which I assume would be 0.49% of £65,000 so she would have to find £318 per month until that £65K could be paid off from the house sale? Are there any other options for her to raise that kind of money?

You would be better off asking this question over on the loans or mortgages board.

lisyloo · 13 July 2018 at 11:35AM

but they say the rules changed and you cannot borrow more money against your mortgage

You could re-mortgage if you have the income and LTV to allow it, but the application, valution process usually takes a couple of weeks.
What they mightbe saying is that they don't want to lend for the reason given (which is their choice as it's their risk).

Bridging loans are the product for this pupose but it's a risk for her.
What is her house doesn't sell for a year? or longer?

so she would have to find £318 per month until that £65K could be paid off from the house sale?

Well yes of course she's going to have to pay interest to borrow money.

There isn't an easy answer unless there is a family memeber who's willing to lend the money.

brewthebear · 13 July 2018 at 11:37AM

Really glad the greedy son is not going to get his mums money. I know a scenario similar where the son takes all the allowances while the mother lives in squalor no hot meals at all know but dont give a ****

The fact that the son has 50k of debt tells a story how did he accrue that, and whats to stop him doing the same again.No morals taking all that money every month.

Thankfully the mum has another child who cares enough what happens to her.

SpideressUK · 13 July 2018 at 11:46AM

lisyloo wrote: »

You could re-mortgage if you have the income and LTV to allow it, but the application, valution process usually takes a couple of weeks.
What they mightbe saying is that they don't want to lend for the reason given (which is their choice as it's their risk).

Bridging loans are the product for this pupose but it's a risk for her.
What is her house doesn't sell for a year? or longer?

Well yes of course she's going to have to pay interest to borrow money.

There isn't an easy answer unless there is a family memeber who's willing to lend the money.

I think I have finally ruled out all my options of getting £65k for her.

I can re-mortgage (which suprised me as I am not working now and last time I asked was told no one would ever give us a mortage on hubby's income) but it would take my mortgage from £210 pm to £700 pm - we certainly cannot cover an extra £490 pm and mum has no monthly money since my brother takes it all. Plus, even if the house sold and the £65K was paid back into my mortgage (that I increased it for to give mum the £65K for the flat) there would still be arrangement fees to cover and potentially a higher interest rate deal than the one now on (currently on a very good mortage deal) so that option went kaput.

I tried asking about a £65K personal loan - they only loan £60K apparently - turns out not allowed to do that as you are not allowed to use a personal loan to buy a house for someone (or maybe just buy a house in general).

I tried these 2nd mortgage loan against you own home things........whilst we pass with flying colours on credit rating and house equity we fail on "affordability" as we pretty much live hand-to-mouth every month so her only real option seem to be Bridging loan which would be incredibly expensive or the loss of the perfect flat.

If worst comes to worst mum can probably by a normal smallish house near me for £70K ish and have a bed in the front room, permanently use a commode and wash down in the sink (which is what she would have been doing had she stayed in the family home anyway) but at least she will be near enough to me to go care for her every day.

I am now likely to have to fend off ten zillion sales calls offering me loans.......

SpideressUK · 13 July 2018 at 11:50AM

brewthebear wrote: »

Really glad the greedy son is not going to get his mums money. I know a scenario similar where the son takes all the allowances while the mother lives in squalor no hot meals at all know but dont give a ****

The fact that the son has 50k of debt tells a story how did he accrue that, and whats to stop him doing the same again.No morals taking all that money every month.

Thankfully the mum has another child who cares enough what happens to her.

He actually has a £30K debt the other £20K was potentially going to deposit on a bigger house for them all to live in. Some of the £30K came from student loan, some from his own stupidity and a lot from marrying a woman who comes from outside of the UK and for whom it cost about £4K a time for her to go back visit her family etc.

IF he does finally get this £30K paid off by the house sale I will be *really* annoyed with him he if goes running debt up again. However, I think now he has finally learned to say "no" to his wife.

margaretclare · 14 July 2018 at 5:11PM

If worst comes to worst mum can probably by a normal smallish house near me for £70K ish and have a bed in the front room, permanently use a commode and wash down in the sink (which is what she would have been doing had she stayed in the family home anyway) but at least she will be near enough to me to go care for her every day.

It is possible nowadays with something called micro-plumbing to have a shower enclosure and loo in a cloakroom downstairs. Apparently more and more people are getting away from the idea of one loo and bathroom upstairs, especially with kids playing out in the garden etc.

I grew up having to wash in the sink. That was then, this is now. I would NOT want to do that again for any reason whatsoever.

Have a look at local bathroom installers. There are all sorts of options.

SpideressUK · 14 July 2018 at 5:15PM

margaretclare wrote: »

It is possible nowadays with something called micro-plumbing to have a shower enclosure and loo in a cloakroom downstairs. Apparently more and more people are getting away from the idea of one loo and bathroom upstairs, especially with kids playing out in the garden etc.

I grew up having to wash in the sink. That was then, this is now. I would NOT want to do that again for any reason whatsoever.

Have a look at local bathroom installers. There are all sorts of options.

Thanks. I'll look into that.

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