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AIBU?

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Original poster

Lending money to buy a house

70 replies

sicknessmedi · 23/10/2025 22:22

My mum has been served notice to move out of her home in London. I want her to move up north with me but she has limited savings and retired so no income.

Could I gift her the money to buy a home and she live there? Will the government make her sell her home if she goes into a care home?

OP posts:
Frynye · 23/10/2025 22:23

Not if you buy the house in your name

Jeschara · 23/10/2025 22:24

Could you put the house and mortgage in your name and can she love there and pay a fair rent and bills.

Howszaboutthat · 23/10/2025 22:25

If you gift her the money then yes, it will become part of her estate and therefore liable to be sold to pay for her care.

If you have the money to buy her a house, buy a house that you own and that is in your name. she can simply live in it.

summerlovingvibes · 23/10/2025 22:25

They don't make you sell it up front to cover care costs. But they take the money back once it is sold.
If you can afford to gift her the money then you'd be better off just buying the house in your name and letting her live there.

HardworkSendHelp · 23/10/2025 22:26

You could buy the house and let her live there.but if you already own a home you will have to pay increased stamp duty. It would be a bit crazy to give her the money to buy the house as then it is hers and if she ended up in care then it could go on care fees.

PerkyCyanPoet · 23/10/2025 22:26

It would make more sense to buy in your name if you can afford it, and she pays you rent?

MistyMountainTop · 23/10/2025 22:29

Lenders won't lend to you if they know you intend to rent to a family member

Original poster
sicknessmedi · 23/10/2025 22:32

MistyMountainTop · 23/10/2025 22:29

Lenders won't lend to you if they know you intend to rent to a family member

Edited

It would be mortgage free

OP posts:
Original poster
sicknessmedi · 23/10/2025 22:40

PerkyCyanPoet · 23/10/2025 22:26

It would make more sense to buy in your name if you can afford it, and she pays you rent?

I would be paying tax on that rental income and I will own a second home so higher stamp duty

OP posts:
Original poster
sicknessmedi · 23/10/2025 22:41

Jeschara · 23/10/2025 22:24

Could you put the house and mortgage in your name and can she love there and pay a fair rent and bills.

So I have to pay tax on £X00k extra year rental and 5% extra stamp duty?

OP posts:
conniesas · 23/10/2025 22:45

sicknessmedi · 23/10/2025 22:41

So I have to pay tax on £X00k extra year rental and 5% extra stamp duty?

Show quote history

So you want to buy a second home without the tax on rental and stamp duty?

Original poster
sicknessmedi · 23/10/2025 22:46

conniesas · 23/10/2025 22:45

So you want to buy a second home without the tax on rental and stamp duty?

Show quote history

Why do you assume I want to buy a house in my name?

OP posts:
titchy · 23/10/2025 22:48

conniesas · 23/10/2025 22:45

So you want to buy a second home without the tax on rental and stamp duty?

Show quote history

And have the state pay for her mother’s care!

Bambamhoohoo · 23/10/2025 22:50

Why don’t you just buy the home and let her live in it for free if you’re worried about paying tax and care homes? You don’t have to charge her any rent!

PurpleAxe · 23/10/2025 22:51

I think you need the kind of financial advice you can't get on Mumsnet.

RandomMess · 23/10/2025 22:54

You could look into seeing if there is a way of setting a trust up.

I also live up north and some of the local over 55 flats are incredible cheap to purchase, but something like that and your Mum covers the monthly service charges?

Floatingdownriver · 23/10/2025 23:04

You can establish a partnership business agreement and do it that way. Costs a bit to set up but tax efficient in the long run

Hellohelga · 23/10/2025 23:04

Would you charge her rent or just let her live there rent free? If rent free then there’s no tax issue. You would have to pay the extra stamp duty and CGT when you sell. But you may get reasonable positive equity out of it, depending on where you live.

Original poster
sicknessmedi · 23/10/2025 23:06

PurpleAxe · 23/10/2025 22:51

I think you need the kind of financial advice you can't get on Mumsnet.

Ok know anyone at 11pm open for legal advice

OP posts:
HoskinsChoice · 23/10/2025 23:06

sicknessmedi · 23/10/2025 22:40

I would be paying tax on that rental income and I will own a second home so higher stamp duty

Show quote history

Good! If you have so much spare cash that you can buy a house with no mortgage then of course you should be paying tax on it.

Original poster
sicknessmedi · 23/10/2025 23:06

RandomMess · 23/10/2025 22:54

You could look into seeing if there is a way of setting a trust up.

I also live up north and some of the local over 55 flats are incredible cheap to purchase, but something like that and your Mum covers the monthly service charges?

How do trust funds work

OP posts:
RandomMess · 23/10/2025 23:14

Sorry I don’t know enough, there are different kinds. You would need specialist advice.

Heartofmetal · 23/10/2025 23:21

A friend gave her parents a significant sum of money to buy their house and registered a charge against the property in her name - much like a bank does by way of a mortgage. She’s a private client lawyer so must be above board!

fairlygoodmother · 23/10/2025 23:21

It might be worth investigating 'lending' her the money to buy the house and putting a charge on the property for the full amount. She would be the owner so no extra stamp duty and when it was sold you would get whatever the charge amount was back before anyone else takes their cut.

It would be her house though so doesn't really work if you want her to pay you rent.

Mandylovescandy · 23/10/2025 23:22

So you have a certain amount of money which you are happy to spend on a house (and the usual stamp duty) for your mum.

Either as a gift in her name which means you might lose all the money put into the house to pay for her care (and even if not potentially have to pay inheritance tax on it but I am presuming not as guessing it would be under threshold).

Or in your name in which case you pay some extra stamp duty - you don't need to charge her rent so paying tax on rent isn't an issue. Has your mum got enough money to pay the stamp duty? Seems fair that she could cover that in exchange for living rent free.

You will be losing whatever income you could have got from that money but hopefully also the house will increase in value.

I would buy it in your name and not worry about the extra stamp duty/see if she can cover it as compared to the general cost of the whole thing the extra stamp duty won't be all that much