AIBU to want to sell my house and daughter wants continue to rent it ?

That’s a tricky situation. I think possibly, you’ll be best sorting it out now because it doesn’t sound like DD1 will be happy to sell and divide with DD2 when and if they inherit.
You’ve given her help, and presumably aren’t throwing her out next week. She should have been saving the money from the cheap rent really. No good deed goes unpunished OP! Hope your treatment goes well.

Firstly, sorry to hear of your diagnosis OP - it's a worrying & scary time for you.

No-one lives for ever & your daughter & grandchildren would need to move when you die in order to sell the house & give her sister her half of their inheritance.

What about equity release? This is in effect a life-time mortgage paid on your death. That way you can release some capital, but wouldn't need to evict your daughter & grandchildren.

However some conversations about what happens in a future are going to be needed. Your daughter needs to be taking responsibility for her own bills & making plans for a future which doesn't include a home at a cheap rent & not having someone to bail her out.

On the odd occasion when we've helped our children out financially, we've always been scrupulously fair about it. If we've given one <say> £1000 towards the cost of a new boiler, we've also given the other 2 £1000, whether they asked for it or not. The last thing we want is for our children to feel that we are preferring one over the others.

Practically you do need to sort this out before your demise. I can just see how awful D1 will be in the future when the house has to be sold - and quickly - to ensure her sister gets her just inheritance. Whatever you do, D1 has shown you how she will be in the future - try and protect both daughters.

Could she afford to buy the house form you OP?

Not wishing to be unkind but she will have to move anyway once you have died. Yes she will have half the value but will she be able to buy then?
As the sister I’d be furious with her tbh. She needs to stand on her own two feet, be grateful for past and current support and stop being childish calling her mother names. Talk about biting the hand that feeds you!

It is not selfish to sell your own home. Your daughter has been very, very lucky to have paid below market rent for six years and whatever arrangements were made six years ago are irrelevant now. You've received a cancer diagnosis and are entitled to spend your own money however you wish.

Be careful about capital gains tax. It’s a second home. Doesn’t matter who you sell it to. You could sell it cheap to her and she gets some inheritance now.

Disadvantaging your other daughter by leaving this dAufhter your house is very unfair. That said if she isn't settled in some way I couldn't turf her out. Can she get on an HA list by you serving notice? Then you sell once she has HA property maybe?

Ah, two kids.That changes it.

Yes, there needs to be a fair split. The home will have to be sold at some point to give your two kids a fair and equitable split. Your oldest has already benefitted from a lower rent for 6 years plus additional financial assistance.

Have you gone over your plans with a financial advisor since your diagnosis?

I'm not in your position, but I must admit, I think I would feel the same. It was.my gut feeling too on reading the OP's post.

Is there an option to remortgage and release some cash that way so that the current house remains in the family?

OP I suspect your daughter will refuse to move out to sell the house after you die to release the money to her sister. She obviously won't be in a position to buy her sister out then either, will she?

What on earth has she been doing these past 6 years if she's not been saving money? Did she think she can just live in your house indefinitely? Were the details ever discussed?

I think you either deal with the fall out now and take the hit being the "bad guy" now, or your other daughter will have to down the line.

I think you need to gird your loins and crack on.

I'm so sorry for what you're going through x

Her daughter is FORTY TWO!

When we become parents we don’t sign over to give everything to them forever. After 42 years, is it not time for the woman to do something for herself. The woman has cancer and wants to spend some money enjoying life while she can. The daughter has benefitted from her mothers generosity for some years but now the mother wants a different arrangement.

Id do exactly the same.

If you’re really looking for a 50k boost could you not sell her 50k’s worth of house? She should be able to mortgage that.

I get it though from her side as well as a family member rented out their house to family mortgage free for around £650 a basic old council 3 bed.

The house next door is £1,499 a month the jump would be terrible. My friend family member moved in with a we will match the rent you pay current. Now they are being told it’s going to jump hugely. But they have no choice as they gave up their same price tenancy and won’t pass a credit check and feel royally fucked over as their old landlord is one of those you can stay forever with a £25 a month per year increase as long as the rents paid investor types. If they had of known they would have never moved in.

I thought you were being unreasonable when I read the first line - I want to sell my house and daughter!

But you are not being unreasonable for wanting to sell your house and enjoy your life.
Your daughter is an adult so can sort housing for her own children. She was lucky to have your support for 6 years and needs to be grateful.

She's young enough to sort her own life out. You, OP, do not have similar time to play with. 💐

The OP has a life limiting illness, and would like to use the profit of money she has earned to live while she can. Her DD has had a good ride from her mum for many years, it’s selfish to not see why your mum might need to free up her finances.

Yes I know & I agree.

Your daughter has had 24 years as an adult to save up. If you want to sell then sell.

If she can't afford the market rent where she lives, she can cope with a 2 bedroom home which will be cheaper. Nobody needs a 3 bed, if it's her and 2 children, at least 2 people will be the same sex and can share.