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Helping mum buy a house - how can it be resolved after death?

(16 Posts)
AhAgain Sun 27-Nov-16 12:08:19

Hi

Sorry, rubbish title. Playing with ideas at the moment.

Trying to get my mum to move closer to me. She is very keen - ill health, 78 - but I know that what she can buy here won't be great (we live in expensive area - no chance of us moving).

I did wonder if I could somehow help her buy a more expensive property (buy-to-let mortagage in my name?)? She could put a very substantial (50% plus) deposit down. I may need to pay the mortgage (interest only £500 a month if I could get it, capital repayment obviously somewhat more than that)

Complications are that although I am an "only child" (the only one who feels responsibility to my mum), the will is financially split with half siblings. So the inheritance will not come solely to me (in the event of her death).

Questions:
- what issues would there be with me getting a buy-to-let mortgage (I already have a joint mortgage - although our equity is about 75%- on our own home) for this sort of arrangement.
- how could we keep this arrangement financially fair? Presumably easier if we took out an interest free mortgage and if my mum covered all the mortgage payments...

Just playing with ideas. Want my mum to be as happy as possible in her final years. If I was a sole beneficiary, then it would be easy, but I am not.

RedHelenB Sun 27-Nov-16 12:16:05

Maybe the inheritance needs to be spent on some sheltered accommodation near you?

SvartePetter Sun 27-Nov-16 12:37:36

Very few btl lenders will allow you to let to family.

PossumInAPearTree Sun 27-Nov-16 12:43:33

I'm sure she could write a will saying that she leaves you the house and then any remaining estate is to be split x ways.

Or that she leaves you 50% of the house and then the rest of the house and rest of the estate is split x ways.

ThornyBird Sun 27-Nov-16 12:45:38

I think this is something worth paying money to a solicitor to for advice - you stand to lose a lot if it is not done properly.

parklives Sun 27-Nov-16 12:46:44

Why do you need to buy?
Better to sell her house and use the money to rent somewhere near-by to you. Avoiding stamp duty etc and all the hassle of home ownership of repairs etc.
I assume she won't be living with you at any stage, so can easily move from her rented accommodation into a care home etc if needs must.
Get a power of attorney when you sell her house so you can pay the bills for her, and keep records of this so the half siblings don't get concerned that money is being mis-handled.

AhAgain Sun 27-Nov-16 12:57:09

Thanks for your thoughts.

There isn't a massive amount of sheletered accommodation around here. Will look into it, but my impressions - thus far - are either "not very nice" or "poor value" (i.e. not great for money and/or big financial tie ins) or both.

That is interesting about btl lenders not allowing letting to family - it had crossed my mind. Wonder if there are other ways to make an additional mortgage work.

If we went down this route, virtually all her estate would go into the property - so that would be unfairly completely weighted to me (and nobody else would get anything). Since her will hasn't changed much since my Dad's death in 2004, it would be difficult to change the percentages much. Difficult: I don't want more than I am entitled too, but I also don't want to fund an investment either (am happy to look after my mum though, but don't want to be investing any money into the benefit of the beneficiaries).

RedHelenB Sun 27-Nov-16 13:05:50

Could she move in with you?

AhAgain Sun 27-Nov-16 13:06:57

Thank you, definitely will get solicitor advice at some stage - make sure everything is above board and fair.

Yes parklives, renting was another thought. Bizarrely there are some nicer rental options around. She might argue that it is spemding her inheritance, but her lifestyle is far more important and - you are right - would remove stamp duty and maintenance bills etc. She is 78, has COPD and Stage 4 cancer in remission. Realistically I would be surprised if she makes 90, possibly considerably less. So there shouldn't be much worry if her outliving her savings (proceeds from house sale).

RNBrie Sun 27-Nov-16 13:12:05

You need to speak to a solicitor. They should be able to write into the will that you are paid back your financial outlay before the rest of the estate is split between whomever is inheriting. If she's not prepared to have the will rewritten then I'd question if she's really onboard with this plan anyway?

AhAgain Sun 27-Nov-16 13:14:15

RedHelen, no. Some people can live with their parents. For some people it wouldn't work. I love my mum, but need space. If we had a house with self contained annex, then maybe, but we don't. I will stress that she is not poor (would get a reasonable amount from a house sale (she has no mortgage on it) and she has comfortable pensions (private and state). It is just that we live in an xpensive area: so I want to make sure she is as happy as possible with a move and she will need things (realistically) like loft access and very convenient parking - which narrows the choices here massively (most flats in this area are in old buildings with no parking).

AhAgain Sun 27-Nov-16 13:14:36

Lift access, not loft access

Cucumber5 Sun 27-Nov-16 13:14:55

What about all three (half) siblings buying the property between you all with her cash as deposit?

BestZebbie Sun 27-Nov-16 13:21:09

Could you buy the house as tenants in common, so the bit that is your money stays yours, ringfenced, and the bit that is your mums money stays hers, ringfenced.
Then if she dies whilst still living in that house, you'd have to sell to release her part to her estate, but you'd get your money back. If the house price rose, your money and your mums money would both increase but only your mums part would be benefiting her estate.

AhAgain Sun 27-Nov-16 13:26:48

No, getting the half sibling to agree wouldn't work. Two of my half siblings aren't my mum's (and one of them is not financially doing great). The other half sibling is my mum's but it is VERY complicated. She was only rediscovered after my Dad's death and so mum's will was updated to give some of my share to my rediscovered half sister (mum didn't feel it fair to take away shares from the other two half siblings who are not related to her). I don't think that she knows that she is a beneficiary and her share is not larger (10% maybe?). She does not have a close or interested/invested relationship with my mum.

So any decisions need to be independent of my half siblings, but completely fair (and settled by a solicitor).

AhAgain Sun 27-Nov-16 13:29:07

Will look at the tenants in common thing. Problem is, I think that mum would provide the entire deposit and I would provide any mortgage. Not sure this is easily resolved?

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