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Staying in family home- any advice much appreciated

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  • Staying in family home- any advice much appreciated

    Hi, I am 45 and have lived in my parents house since I was 2.

    My widowed mother (75) has agreed that she will arrange the will so that I will have right of occupancy after her death. My older brother (lives elsewhere) has agreed to this.

    Prior to this agreement I had thought I was going to have to find a home of my own. However, I have a good relationship with my mum and it helps my being around. I would also struggle on my current wage to fund a mortgage without having very little left to live on. I have had a lot of personal problems in the past so the security is important to me as is the stability of the arrangement.
    So, I would like to stay in the family home and thus not have to worry about finding a mortgage.
    My brother does not want his share of the house when mum dies as he was sufficient money and wants me to have a secure future as regards housing.

    My question is, given the risk of getting a mortgage, is the risk of staying here and one day my mother needing long term care a wise choice? She is in good health and no issues but of course you never know what might happen 5 or 10 years down the line.

    In the worst case scenario, would the local authority turf me out of the house in order to sell it? I have helped out with bills (plus paying housekeeping etc) and keeping the place up together over these many years. I understand they do not count other relatives living in the home who are over 60. However, is there any chance they would look favourably at someone like me?

    I find myself in a difficult position as to best course of action. A mortgage would be virtually unsustainable but being made homeless in years to come is also of course a worry.

    I actually think there is more chance of my mum needing intervention if I moved out and she was on her own. We both have quality time and it helps all round. I wondered if in later years the local authority might look on me as a kind of carer?

    Any advice or insights on this would be much appreciated. Thanks all.
    Tags: None

  • #2
    Re: Staying in family home- any advice much appreciated

    Hi Chris45uk and

    Who actually owns the house - is it your Mum? and is there a mortgage?
    “Find a place inside where there's joy, and the joy will burn out the pain.” Joseph Campbell

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    • #3
      Re: Staying in family home- any advice much appreciated

      Hi Miss FM

      My mum owns the house outright as mortgage was paid off when my dad was still alive.

      Comment


      • #4
        Re: Staying in family home- any advice much appreciated

        The obvious answer is for her to make a gift of the house to you now but I think that's too simple and I'm not sure of the tax implications. No doubt a more knowledgeable Beagle will be along - meanwhile I will do some research.
        “Find a place inside where there's joy, and the joy will burn out the pain.” Joseph Campbell

        Comment


        • #5
          Re: Staying in family home- any advice much appreciated

          Thank you very much. I understand there might be Capital Gains Tax implications about that, also on her status being able to continue to live here rent free if I owned the place. I looked at buying the place but that would be too much and selling it a much reduced rate to me would not be appropriate, all in all a messy business.

          Comment


          • #6
            Re: Staying in family home- any advice much appreciated

            I think in that case if all agree then your mum could gift half the house to you. This would mean that selling the property if your mum ever needs to pay care home fees would be nigh on impossible as you can not sell half a house. Keeping in mind that Local Authorities can go back 7 years if they think that this was done to avoid paying care home fees.
            I also think this will mean as you only own half the house your mum will not have to pay you rent to live in the house. If she gave you all the house this would not be the case.
            That's only my opinion on the matter and any step you do take should be done properly and handled by a solicitor.

            Comment


            • #7
              Re: Staying in family home- any advice much appreciated

              Is it over the threshold for inheritance tax (ie 325K, AFAIK)?
              “Find a place inside where there's joy, and the joy will burn out the pain.” Joseph Campbell

              Comment


              • #8
                Re: Staying in family home- any advice much appreciated

                sorry - crossed with Enaid
                “Find a place inside where there's joy, and the joy will burn out the pain.” Joseph Campbell

                Comment


                • #9
                  Re: Staying in family home- any advice much appreciated

                  No, its worth about 190-200k

                  Comment


                  • #10
                    Re: Staying in family home- any advice much appreciated

                    You could look into your mother putting the house into trust for you and your brother (that does avoid some tax implications I believe) but your mother needs to get her own, independent, advice on the issue from a decent solicitor who is experienced in property issues. (Trust would also mean that if something dire happened and you were made bankrupt / your brother made bankrupt / either of you need care / divorce etc that the house wouldn't be at risk until your mothers passing or other defined time, as opposed to gifting ownership while she still needs to live in her home when it would be at risk if something unforseen happened )
                    “We may not win by protesting, but if we don’t protest we will lose. If we stand up to them, there is always a chance we will win.” Hetty Bower

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                    • #11
                      Re: Staying in family home- any advice much appreciated

                      This might be helpful:

                      http://www.ageuk.org.uk/products/fin...egal-services/

                      You want to avoid the situation Enaid describes above ie that the LA gets the idea that you are in some way trying to avoid legitimate care home fees should that situation arise. 7 years appears to be the magic number and if she is in good health and you are happy to be her carer then it's just a matter of working out what is most cost effective tax wise.

                      Well worth getting detailed legal advice IMHO.
                      “Find a place inside where there's joy, and the joy will burn out the pain.” Joseph Campbell

                      Comment

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