Helping elderly mum move by lending her money

[PostHeads123]

Basically my mum is old and ill may be 5 years left, she lives up north rest of the family in the south, she wants to move to be closer to us but house prices / finance stopping her, I'm in a position to help financially so this can happen but I'm not in position to write off the money long term. Initially I thought just get her Will updated so I get my money back at that point but someone pointed out what if she ended up in a home and the flat was used to pay care fees, so I guess to avoid this the property will have to be jointly owned? How would it work on stamp duty if the property is jointly owned it being her only property and me being part ownership of a second, would the higher rate be due? Got no idea of best way to do this all at moment will get some legal advice but wondered if anyone had done the same and what's the most effecient way to do it. Her estate would be well under the inheritance tax threshold, she would put approx £150k in from her sale and I would need to top it up by £50k-£75k.

Cheers

[kiethton]

If that 5 years left thing is accurate I'd not be buying - I'd be renting a retirement flat (and offering materially below asking rent). Buying a house in the SE, after the time you've allowed for stamp, legals etc there is a good chance that the break-even period is 2 years of ownership (ex. capital growth).

If you wanted market participation you could rent for her here and rent her current home out up there (fully managed by a recommended agent) - tax unlikely to be an issue for an OAP and it'll then keep a toe in the market for any capital growth.

[Carbon Sasquatch]

kiethton said:

If that 5 years left thing is accurate I'd not be buying - I'd be renting a retirement flat (and offering materially below asking rent). Buying a house in the SE, after the time you've allowed for stamp, legals etc there is a good chance that the break-even period is 2 years of ownership (ex. capital growth).

If you wanted market participation you could rent for her here and rent her current home out up there (fully managed by a recommended agent) - tax unlikely to be an issue for an OAP and it'll then keep a toe in the market for any capital growth.

This is 100% what I'd be doing.

Lend her the money (if she needs it) to move into rented immediately & then re-pay it from the sale of her house - all clearly documented.

[PostHeads123]

Thanks for replies appreciated, I'm starting to think rented as well or even a retirement apartment which could work as they seem cheaper but have higher maintenance charge, but she would have cash to cover the maintenance if its around £300-£400 a month the Marcathey Stone places seem to be £8k - £9k maintenance a yeah so would avoid them. 5 yrs left of life is guess tbh but she going down hill much quicker than expected and I need to sort it this year. I would have her live with me but my partner and mum dont see eye to eye so not really agoer at the moment.

Cheers

[K77 CTR]

Be very careful with retirement places, when my aunt died it was near impossible to sell her flat. Took over a year and sold for about half of its value.

[anonymous-user]

K77 CTR said:

Be very careful with retirement places, when my aunt died it was near impossible to sell her flat. Took over a year and sold for about half of its value.

https://www.theguardian.com/money/2019/nov/16/flat...

https://www.thisismoney.co.uk/money/news/article-1...

[Bruggy]

I did this with my Dad to get him into a new property. You need a Deed of Trust - arranged using a solicitor.

https://www.homewardlegal.co.uk/conveyancing/deed-...