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    • moochypooch
    • By moochypooch 16th Apr 19, 9:42 PM
    • 1Posts
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    Lifetime Mortgages
    • #1
    • 16th Apr 19, 9:42 PM
    Lifetime Mortgages 16th Apr 19 at 9:42 PM
    Unfortunately my father in law has just been diagnosed with terminal cancer. My wife and I have been going through the finances to ensure my mother-in-law is set and come across a lifetime mortgage that they took out in 2007 for £26k.

    Looking at the interest on the deal, itís currently going to be somewhere in the region of £75k to repay it. If the mother-in-law lives for another 10 years, there is a risk the cost of the repayment could exceed the value of the house.

    Currently, the house is worth about £130k. My wife and I were looking to invest in property.
    Is it possible for us to buy the house for say, £90k with the mother-in-law gifting £40k off of the value. We can then cover the cost of the existing debt with a little left over for the mother-in-law.

    The plan is that she can then live there rent free. As and when the time comes, we have the property to sell or rent out.

    There are bound to massive issues with this. Can someone explain if this is even possible?
Page 1
    • csgohan4
    • By csgohan4 17th Apr 19, 6:13 AM
    • 5,796 Posts
    • 3,797 Thanks
    • #2
    • 17th Apr 19, 6:13 AM
    • #2
    • 17th Apr 19, 6:13 AM
    Deprivation of assets may come into play with your mother undervaluing the house. This will be taken into account should she need care in future

    Mortgage lenders do not like the seller or family members gifting money and remaining there. If your not going to live there your going to need a BTL mortgage even though your not receiving rent
    Last edited by csgohan4; 17-04-2019 at 6:35 AM.
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"
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