Good solution or crazy idea?

[ppau]

I want my dc to go to a local private school. (Please don’t turn the thread into a state v private debate!)

I had a very good job until recently when my mental health took a turn for the worst. Due to an awful turn of events DC’s father is not with us so we have no additional financial support.

I have minimal savings but my parents own four homes. They have said these will be passed on to me and my brother. Obviously things can change, I know that! But the plan is we would inherit two each. They are not massively high value, around 350k each.

I have 250k equity in my house which is valued at 500k. I’m 38. I am thinking of selling, taking out 100k and starting again somewhere smaller with 150k deposit… and I suppose hoping it all works out in the long run paying off somewhere again, due to inheritance.

I know 100k isn’t enough but I save 1,200 a month at the moment and dc is only 3 so I am hoping I can get a bit more ready before he is 5.

Is there anything I have missed here? Is this crazy or reasonable? I am not bothered much about material things and before anyone starts about private school being more than the fees, we are v v fortunate that dc has a lot spent on him by grandparents so he certainly won’t be going without all the new things… although I can’t say I will be bringing him up to value ‘stuff.’ I feel strongly about private school so please if you are giving advice (which I really welcome!), don’t tell me it’s not work it etc as it really is to me.

Are you currently paying for childcare? Don't forget that will drastically reduce once he starts school, so you can add that saving into to your budget.

Lots of people do state until 8.

But honestly you can’t rely on money you don’t have. It currently cost 2k a week for a live in carer to look after 1 person, more for 2 and about 1.2 to 1.4k for a care home (these are NE prices). Your parents could easily go through 650k in care fees in 5 years at today’s prices.

And does the gifting allowance kick in for inheritance tax?
OP have you looked at the tax liability position yet?

Thanks… they wouldn’t gift the houses yet as they use them for their own income.

I wouldn’t feel ok asking them to pay the fees and I’m sure they wouldn’t anyway. Maybe they’d contribute but definitely nowhere near the full amount.

Local state isn’t good. We live in a very nice area so it’s disappointing too. But that’s how it is.

This is exactly what is meant by wanting a champagne lifestyle on a lemonade budget.

You can't afford it. The only thing you can do is sell your house and move to one where there are schools.

Also, if you want a good education for your children, they will learn to look at things from all angles. You are refusing to do that yourself.

How do you save 1200 a month if you don't have a job?

Risking the security of your house based on a potential future inheritance is madness.

@determinedtomakethiswork how it is a champagne lifestyle? 🤦‍♀️ It’s paying for education not sitting in fancy bars and hotels… which I could do most weekends if I wasn’t instead planning on paying for school.

@Frenchfancy I mean I save 1,200 on my current income after a pay cut stepping down from a previously higher paid role (this was my decision as I wasn’t coping mentally)

Care cap though. 85k each max on care when introduced ( 2025?)

still absolutely ridiculous though OP.

I wouldn’t expect anything to be set in stone as we may have a change of government before then. The care cap will only cover the bare minimum and as the OPs have the money to self fund they want to be more comfortable rather than min level of care.