Jump to content


vegetablelasagne

How to use my Mum's house as an asset?

style="text-align:center;"> Please note that this topic has not had any new posts for the last 813 days.

If you are trying to post a different story then you should start your own new thread. Posting on this thread is likely to mean that you won't get the help and advice that you need.

If you are trying to post information which is relevant to the story in this thread then please flag it up to the site team and they will allow you to post.

Thank you

Recommended Posts

Hi - apologies if this is on the wrong forum...

 

My mum owns her house outright. She's 71 and wants to help me and my daughter to buy a property/see that we inherit the house when she passes away.

 

Buying a house for us:

Personally - I'm currently self-employed and don't earn very much, I'm reliant on Housing Benefit for my rent.

She has a 18K deposit we could use, but obviously I can't get a mortgage with my current earnings.

So the only option we can think of is Equity Release.

Could somebody shed some light on this option as it appears to be a bad move from the research that I've done.

 

Inheriting the house:

We've thought about switching the house over into my name, so when/if she ever has to go into a home, the equity from the house wouldn't go on home fees?

But in doing this, I'm assuming that I'd have to pay the bills on the house which I can't afford to do right now.

 

Any help/tips/ideas would be greatly appreciated - thank you.

Share this post


Link to post
Share on other sites

Your Mum should not touch Equity release, as that will probably be an expensive way of helping family.

 

I don't think anyone can advise you on an online forum, as we don't know your Mums financial and health situation. Also we don't know the current market value of her house.

 

This type of thing can be a bit if a minefield, as you can't be seen to deliberately give away assets, so you don't have to pay care home home fees if required. This is where your Mum should obtain proper legal advice about the best way to protect herself and any assets she owns, while helping family.


We could do with some help from you.

PLEASE HELP US TO KEEP THIS SITE RUNNING EVERY POUND DONATED WILL HELP US TO KEEP HELPING OTHERS

 

 Have we helped you ...?         Please Donate button to the Consumer Action Group

 

If you want advice on your thread please PM me a link to your thread

Share this post


Link to post
Share on other sites

Thanks unclebulgaria67(!)

 

Why is Equity Release not a good idea? Her house is worth 200K, she's a retired teacher and fit as a fiddle.....

Share this post


Link to post
Share on other sites
Thanks unclebulgaria67(!)

 

Why is Equity Release not a good idea? Her house is worth 200K, she's a retired teacher and fit as a fiddle.....

 

Just what i have read, that they give the home owner a cash sum in lieu of a charge on the house, but the terms offered are not great. It is not something to enter into without getting advice.

 

I am sure you have read articles on this subject and most say to tread very catefully.

 

Your Mum might live to over 100 as an increasing number do. She also be lucky never to need a care home and can live in her house with occasional help.

 

Perhaps the way forward is for family to buy a bigger house together. Mortgages are now available to pensioners and other members of the family can take out a joint mortgage with her. Has this option been looked into ?


We could do with some help from you.

PLEASE HELP US TO KEEP THIS SITE RUNNING EVERY POUND DONATED WILL HELP US TO KEEP HELPING OTHERS

 

 Have we helped you ...?         Please Donate button to the Consumer Action Group

 

If you want advice on your thread please PM me a link to your thread

Share this post


Link to post
Share on other sites

Useful link containing info on equity release

 

https://www.moneyadviceservice.org.uk/en/articles/equity-release


We could do with some help from you.

PLEASE HELP US TO KEEP THIS SITE RUNNING EVERY POUND DONATED WILL HELP US TO KEEP HELPING OTHERS

 

 Have we helped you ...?         Please Donate button to the Consumer Action Group

 

If you want advice on your thread please PM me a link to your thread

Share this post


Link to post
Share on other sites
Hi - apologies if this is on the wrong forum...

 

My mum owns her house outright. She's 71 and wants to help me and my daughter to buy a property/see that we inherit the house when she passes away.

 

Buying a house for us:

Personally - I'm currently self-employed and don't earn very much, I'm reliant on Housing Benefit for my rent.

She has a 18K deposit we could use, but obviously I can't get a mortgage with my current earnings.

So the only option we can think of is Equity Release.

Could somebody shed some light on this option as it appears to be a bad move from the research that I've done.

 

Inheriting the house:

We've thought about switching the house over into my name, so when/if she ever has to go into a home, the equity from the house wouldn't go on home fees?

But in doing this, I'm assuming that I'd have to pay the bills on the house which I can't afford to do right now.

 

Any help/tips/ideas would be greatly appreciated - thank you.

 

Hello there.

 

To add to what UB has said, I think you need to check on the rules for Deprivation of Capital if someone needs to go into a care home. Someone can't just give away capital or a house and have no comeback unfotunately.

 

HB


Illegitimi non carborundum

 

 

 

Share this post


Link to post
Share on other sites
To add to what UB has said, I think you need to check on the rules for Deprivation of Capital if someone needs to go into a care home. Someone can't just give away capital or a house and have no comeback unfotunately.

 

Absolutely true. Further more, whilst the mother still resides in the house, it would be classed as a "gift with reservation". The council would also look at the transaction and take steps to recover the asset regardless of the time elapsed between the date of gifting and the point of care being needed.

 

The other danger of transferring ownership is if one of the registered owners is declared bankrupt, the official receiver may well seize the property and evict the mother in order to sell it.

 

Another scheme to avoid is any Wealth Preservation Trust that claims to be able to protect assets from care home fees or inheritance tax. HMRC and local authorities have wised up to these schemes and will still regard the assets as being owned ny the person in question. http://www.bbc.co.uk/news/business-39589083


PLEASE HELP US TO KEEP THIS SITE RUNNING

EVERY POUND DONATED WILL HELP US TO KEEP HELPING OTHERS

 

 

Quote
No... you can't eat my brain just yet. I need it a little while longer.

Share this post


Link to post
Share on other sites

switiching the house to you and your siblings wont stop it being used to pay for care fees unless you either move in or you mum then pays you a commercial rent and when she moves into a care home you take action to evict her from your property so she cant return. Even then they may decide that she has deliberately deprived herself of her assets so flogging the house as soon as you get it wouild be the way round that but the new owner wont want you mum living with them.

Share this post


Link to post
Share on other sites

https://www.moneyadviceservice.org.uk/en/articles/equity-release

 

Interesting article from the Money Advice service.

 

I think not being able to rely on the property for health care should Mum need to go into care at anytime would be the most important thing that would see me off looking at this way of releasing equity.

If you release equity from your home, you might not be able to rely on your property for money you need later in your retirement. For instance, if you need to pay for long-term care.


Have we helped you ...?         Please Donate button to the Consumer Action Group

 

Uploading documents to CAG ** Instructions **

 

Looking for a draft letter? Use the CAG Library

Dealing with Customer Service Departments? - read the CAG Guide first

 

1: Making a PPI claim ? - Q & A's and spreadsheets for single premium policy -

HERE

2: Take back control of your finances -

Debt Diaries

3: Feel Bullied by Creditors or Debt Collectors?

Read Here

4: Staying Calm About Debt

Read Here

5: Forum rules - These have been updated -

Please Read

 

 

BCOBS

 

2: Does your Bank play fair - You can force your Bank to play Fair with you

3: Banking Conduct of Business Regulations - The Hidden Rules

4: BCOBS and Unfair Treatment - Common Examples of Banks Behaving Badly

5: Fair Treatment for Credit Card Holders and Borrowers - COBS

 

 

 

Advice & opinions given by citizenb are personal, are not endorsed by Consumer Action Group or Bank Action Group, and are offered informally, without prejudice & without liability. Your decisions and actions are your own, and should you be in any doubt, you are advised to seek the opinion of a qualified professional.

 

PLEASE DO NOT ASK ME TO GIVE ADVICE BY PM - IF YOU PROVIDE A LINK TO YOUR THREAD THEN I WILL BE HAPPY TO OFFER ADVICE THERE:D

Share this post


Link to post
Share on other sites

also be aware - government legislation on selling or transfer house to children whilst elder parent alive has implications i.e. :- further life and care home charges think you are on a looser here due to circumstances???? sure others will advise also?


:mad2::-x:jaw::sad:

Share this post


Link to post
Share on other sites

  • Recently Browsing   0 Caggers

    No registered users viewing this page.


  • Have we helped you ...?


×
×
  • Create New...