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Any flaws in this plan ?

(18 Posts)
CherylCole Wed 05-Aug-09 19:06:36

Our timing for moving is as ever awful.
We currently own a 4 bed house which I think we'd lose money on if we sold.
Hubby has an opportunity of a job in a place we used to live and I felt at home in but we could never afford a family home in.
His mother doesn't like where she currently is.
So my master plan is that his mother sells her house and gives us the money which we use to buy a place big enough for MIL to use until she pops her cloggs and then DH and I live their once the kids have left home.
In the meantime we'd rent out current house, rent ourselves a house where DH's job is. Then sell the 4 bed house as and when we retire.
Am I missing any potential pitfalls at all ?

mumblechum Wed 05-Aug-09 19:09:54

I'm confused.

So you want your MIL to sell her house but you want to take control of what she buys as a replacement? Would that be in your name or hers? If in your name she'd have to at least have a life interest but I don't think she should do that anyway. Or would you buying her house in joint names in trust?

Why would your MIL want to do this?

mumblechum Wed 05-Aug-09 19:10:54

A hundred and one things could change before your MIL dies, you could get divorced for one thing.

Does your dh have any siblings?

CherylCole Wed 05-Aug-09 19:14:10

Sorry should have said DH is an only child and his mother basically has about £50k to her name so there's no way she can buy anything other than where she currently lives, an apartment which she is unhappy in.

There is always the divorce thing but I guess then all assets would be split anyway, DH and I have been together since we both started work.

claricebeansmum Wed 05-Aug-09 19:15:38

Have you really really thought long and hard about having your MIL living with you full time. I would rather eat my own arm. Does you MIL like where you are going? Is she really going to be prepared to give up her own home so she can buy you a house that you might want to live in in the future.

Personally I think there are far too many variables!

CherylCole Wed 05-Aug-09 19:16:03

And she may well not want to do it, what she wants is to move in with us and that is not happening.

CherylCole Wed 05-Aug-09 19:17:15

Oh no no no she's not going to live with us. I think she'd follow DH to the moon, god knows we've tried to lose her on the M6 before now but still she follows.

LynetteScavo Wed 05-Aug-09 19:17:29

Teh pitfall you are missing is that the landlord of the house you are renting may want thier house back. Tehn you will have to move....that may happen several times.

Why on earth would MIL Give you the money to buy a house? Why can't she just buy a new house, and you hope she bequethes (sp?) it to you.

Bad idea all round.

CherylCole Wed 05-Aug-09 19:19:52

She can't afford a house of her own that's the advantaeg for her and there's no question that DH is the only benefactor, she'd write him a cheque now if we'd let her live with us.

There must be long term rentals surely though ?

mumblechum Wed 05-Aug-09 19:25:42

Ok, so you'd be buying the replacement house for her in joint names of the 3 of you, then.

Things to think about:

1. If you split, she'll have to sell "her" house

2. When she dies, if you end up not moving in to that house but sell it (because circs have changed), CGT will be payable

3. You may not agree on what house to buy - what she wants as a home for herself now may be very different from what you want as a retirement home several decades in the future.

mumblechum Wed 05-Aug-09 19:27:30

My advice is that unless the whole thing is going to crystallise in 5 years, ie she's likely to die, you're likely to retire in that period, it's a non starter purely because you're thinking way too far into the future and there are so many things that could change.

For example, your dh could get a job in a completely different part of the country.

CherylCole Wed 05-Aug-09 19:33:38

Oh bugger

The problem is where ever we move to she will want to come and the horrible truth is she just cannot afford the area or even anywhere close by.
So now she'll blackmail DH into turning the joob down because she only bought the flat here to be near him yada yada

mumblechum Wed 05-Aug-09 19:39:29

Well don't tell her about the job then! smile

My MIL doesn't even know which co. my dh works for or what he does. I think she thinks he's a university lecturer.

(Not a close family!)

CarGirl Wed 05-Aug-09 19:40:45

well those retirement apartments are fairly inexpensive would she be able to afford one of those? Or she'll have to lump it and not live that near you anymore.

CherylCole Wed 05-Aug-09 20:17:07

This is the trouble she's in one of those retirement apartments now and it simply hasn't kept up with the market, plus she feels too young to be in one at 69 hmm but complains bitterly about any noise outside her window, so quite what she thinks it'll be like living in the real world I don't know.
I suppose we could just leggit and have her down for weekends, I suspect it's all going to kick off here tonight, oh joy !

CarGirl Wed 05-Aug-09 20:22:56

I did wonder if she was already in one!

Yes just have her down for weekends, although she may be able to move a bit nearer and afford it.

She could just rent?

HerHonesty Wed 05-Aug-09 20:41:20

have you thought about the tax implications?

CherylCole Wed 05-Aug-09 21:09:39

She'd rather die than rent, nah she can just stay put and visit much better idea grin

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