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  • FIRST POST
    • Craigie66
    • By Craigie66 12th Aug 18, 7:25 PM
    • 5Posts
    • 3Thanks
    Craigie66
    Can I buy my Paretns house
    • #1
    • 12th Aug 18, 7:25 PM
    Can I buy my Paretns house 12th Aug 18 at 7:25 PM
    My dad owns his house but is in a care home because of advanced dementia. My mum has POA for dad. My brother and i are currently going through the process of getting POA for Mum. She has recently been admitted to a care home and we now need to sell their house to pay for their care. I am seariously thinking of buying their house but i dont have any way of getting a deposit.
    Is there a way of me buying my childhood home if i am an acting attorney
    We are aware that we need to gain POA for dad to be able to sell the house
Page 1
    • Pixie5740
    • By Pixie5740 12th Aug 18, 7:36 PM
    • 13,385 Posts
    • 19,307 Thanks
    Pixie5740
    • #2
    • 12th Aug 18, 7:36 PM
    • #2
    • 12th Aug 18, 7:36 PM
    My dad owns his house but is in a care home because of advanced dementia. My mum has POA for dad. My brother and i are currently going through the process of getting POA for Mum. She has recently been admitted to a care home and we now need to sell their house to pay for their care. I am seariously thinking of buying their house but i dont have any way of getting a deposit.
    Is there a way of me buying my childhood home if i am an acting attorney
    We are aware that we need to gain POA for dad to be able to sell the house
    Originally posted by Craigie66
    If you can't raise a deposit then you can't raise a mortgage. You can't gift yourself the deposit from the equity because you wouldn't be acting in your parents' best interests which is what you need to do as POA.
    • Craigie66
    • By Craigie66 12th Aug 18, 8:10 PM
    • 5 Posts
    • 3 Thanks
    Craigie66
    • #3
    • 12th Aug 18, 8:10 PM
    • #3
    • 12th Aug 18, 8:10 PM
    Would this change if I take my name off the POA as my brother is also a named attourney?
    • Pixie5740
    • By Pixie5740 12th Aug 18, 8:12 PM
    • 13,385 Posts
    • 19,307 Thanks
    Pixie5740
    • #4
    • 12th Aug 18, 8:12 PM
    • #4
    • 12th Aug 18, 8:12 PM
    Would this change if I take my name off the POA as my brother is also a named attourney?
    Originally posted by Craigie66
    Why would it change? Your brother would still have to act in your parents' best interests.
    • davilown
    • By davilown 12th Aug 18, 8:12 PM
    • 1,490 Posts
    • 954 Thanks
    davilown
    • #5
    • 12th Aug 18, 8:12 PM
    • #5
    • 12th Aug 18, 8:12 PM
    Does sound a bit potentially like there might be an issue with deprivation of assets as well - make sure you get good advice
    Back in Debt 226,500 on a 230,900 mortgage) Overpayment 237 pm - Aim to be Mortgage free by 2034
    27000/27000 paid off Feb 2010 since LBM Jan 2007!
    • 00ec25
    • By 00ec25 12th Aug 18, 8:27 PM
    • 7,336 Posts
    • 7,051 Thanks
    00ec25
    • #6
    • 12th Aug 18, 8:27 PM
    • #6
    • 12th Aug 18, 8:27 PM
    Would this change if I take my name off the POA as my brother is also a named attourney?
    Originally posted by Craigie66
    No it would NOT

    - you are seeking to deprive your parents of money they need to fund their ongoing care by trying to buy "cheap"

    - you do not have enough money of your own to even raise a deposit

    - you may well have the world's largest salary when it comes to your ability to get a mortgage in your own name, but without the ability to pay, in real hard cash, a deposit against the purchase of your parent's home, you open yourself to being sued by the council for acting in your own financial interest, not the interest of your parents who now need every penny they have in their name
    • Craigie66
    • By Craigie66 12th Aug 18, 8:44 PM
    • 5 Posts
    • 3 Thanks
    Craigie66
    • #7
    • 12th Aug 18, 8:44 PM
    • #7
    • 12th Aug 18, 8:44 PM
    This has all happened very quickly for us and it is just a bit of food for thought.
    I would never try to rip my parents off and if i thought it would really help i would do their house up and get as much i could for them.
    The reality is that their combined care bill will amount to over 2000 per week and as it is, their house is worth around 250000 they are going to be back to funded care in 2 years.
    Thanks any way .
    • Mojisola
    • By Mojisola 12th Aug 18, 8:50 PM
    • 30,143 Posts
    • 77,474 Thanks
    Mojisola
    • #8
    • 12th Aug 18, 8:50 PM
    • #8
    • 12th Aug 18, 8:50 PM
    This has all happened very quickly for us
    Originally posted by Craigie66
    Has anyone from the council told you about the 'deferred payment scheme'? This gives you time to sell the house - the council puts a charge on the property and is repaid when the house is sold.

    It can provide a breathing space while you get your head together.
    • Craigie66
    • By Craigie66 12th Aug 18, 8:59 PM
    • 5 Posts
    • 3 Thanks
    Craigie66
    • #9
    • 12th Aug 18, 8:59 PM
    • #9
    • 12th Aug 18, 8:59 PM
    Yes they have and is the agreement we are entering.
    Thank you
    • Mojisola
    • By Mojisola 12th Aug 18, 9:06 PM
    • 30,143 Posts
    • 77,474 Thanks
    Mojisola
    And the 12-week property disregard?
    • Craigie66
    • By Craigie66 12th Aug 18, 9:15 PM
    • 5 Posts
    • 3 Thanks
    Craigie66
    Yes they have thankyou
    • Keep pedalling
    • By Keep pedalling 12th Aug 18, 11:06 PM
    • 5,693 Posts
    • 6,492 Thanks
    Keep pedalling
    You say the house is owned by your father. If you mother does not own any of it surely it should be counted for his care alone. It would only count for her care if she inherits his estate if he dies before her.
    • tlc678910
    • By tlc678910 13th Aug 18, 1:53 AM
    • 752 Posts
    • 1,181 Thanks
    tlc678910
    Hi,

    You have to act in your parents best interests (as a power of attorney) so this would mean getting the best price you can for them if you sell their home to fund their care (subject to the best price being able to proceed). Basically you need to be able to evidence you are acting in their best interest.

    If you wanted to buy your parents home rather than advertise it on the open market it would be very important to use a transparent process for determining the value so that you are not accused of acting improperly. This could be getting an independent valuation in writing by a RICS qualified valuer and paying the price that they suggest. Anything you do should be open to scrutiny.

    You need a deposit to get a mortgage. Would a family member lend you the money (not your mum and dad as they lack the capacity to decide to loan you money). Would a family member like to buy jointly with you and can afford the deposit - which can be protected for them? I think there may be one or two mortgages lenders who allow a deposit to be borrowed on a loan (subject to affordability that you can afford both the mortgage and loan payments) so you could ask a broker about this.

    As a power of attorney I believe you need to appoint a trustee before you can sell the property.(EDIT after a quick look I think that this might be only for jointly owned properties).

    From your post it doesn't seem to be the case but just to add your parent's home should be exempt from consideration for their care fees if they live with a relative that is disabled or over 60.

    You might be able to keep the property if your parents use the council's deferred payment scheme and you go on to inherit. If you can raise a mortgage that is enough to pay off the council care fees and pay any other beneficiaries and if your own share is enough to act as a deposit.

    Tlc
    Last edited by tlc678910; 13-08-2018 at 2:42 AM.
    • xylophone
    • By xylophone 13th Aug 18, 9:01 AM
    • 27,713 Posts
    • 16,664 Thanks
    xylophone
    Your father is the sole owner?

    https://www.ageuk.org.uk/information-advice/care/paying-for-care/paying-for-a-care-home/do-i-have-to-sell-my-home-to-pay-for-care/


    In the means test the local council must take into account joint owners who own different amounts of the property. They shouldn't assume that joint owners have equal shares, although you may have to provide evidence to prove this.
    They shouldn't assume that a married couple are joint owners ?

    Would you be able to raise a deposit while the deferred payment scheme operates?

    Have you obtained a "fair market value" from a RICS surveyor (or has the council done this)?
    • elsien
    • By elsien 13th Aug 18, 9:07 AM
    • 17,846 Posts
    • 45,351 Thanks
    elsien
    You also need to check the power of attorney situation for dad. If it was set up with mum as sole attorney with no reserves then I believe if mum loses capacity it will no longer be valid.
    So it's possible that you will have to look into financial deputyship rather than power of attorney for dad.
    All shall be well, and all shall be well, and all manner of things shall be well.

    Pedant alert - it's could have, not could of.
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