Hi,
Elderly relative has property A, owned outright, but no longer suitable for his needs (first floor). He will effectively be housebound if he continues to live there. We have seen property B which is up for sale and would be perfect. However, he would need to sell Property A to fund most of it.
As Property A is not even yet on the market (it was a sudden change in circumstances), we expect it will take a few months to go through, even if he prices it low. We could borrow the money on our own house, and lend it to him to buy it now, which would make his life immensely easier.
If we were to do that, what would be the best way of securing our loan to make sure we get repaid - particularly thinking if he deteriorates further and needs care, and his property is taken into account, or if the worst happens and he dies, as his estate is to be split 50/50.
I understand we can put a charge on the property, or would it be better to put the new property in our names? Or do we put a charge on both properties? Property B has a covenant restricting only over 55's, so I don't know if it would even be possible for it to be in our names.
I feel callous thinking about making sure we get the money back, but as much as I want to help him, if we have secured a loan on our family's home, we need to make sure it doesn't get swallowed in care fees or paid to the absent beneficiary of the will!
Also, we're wondering if we have to sell Property A before purchasing Property B, whether the current owners would consider renting it to us for 6 months whilst we try to sell, so that he could move immediately. Has anyone any experience of this?
Thank you