Property News · January 23, 2023

Is there a mortgage my friends can use to move without needing help from their daughter?


Their home would sell for £400,000 but bungalows near their family cost about £500,000Q My friends retired to the coast 20 years ago. They are now in their late 80s and want to return to live near their daughter and two sons to benefit from their support.
The problem is that their current home on the coast is likely to sell for £400,000, but bungalows back near their family cost about £500,000.
Their daughter is debating options as to how she can help. Could she take out a mortgage (the home she owns outright is worth about £440,000) on her home or take an unsecured loan to make up the shortfall for her parents? Or can my friends get some sort of loan, or equity release or interest-only product that they can manage on a small pension? How can my friends make sure their daughter is repaid in the event of their death or if care home fees become due? KSA Judging by the number of emails I had over the years from one sibling (of several) being helped financially by parents or the other way round, unless all arrangements are made out in the open and with all interested parties involved, things can easily turn sour, not to mention bitter and resentful. And any arrangement where the lender – in this case, your friends’ daughter – needs to be paid back (even if eventually) can make added and unnecessary complications. Continue reading…

Source : theguardian.com
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