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Stuart J
Stuart J, Solicitor
Category: Law
Satisfied Customers: 23730
Experience:  Senior Partner at Berkson Wallace
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We want to buy a property between two generations of our

Customer Question

We want to buy a property between two generations of our family. The older party will gift half the value of the house in cash and the younger generation will mortgage their part. The older party cannot be on the mortgage due to age being over 75 can they be on the title deed or have a charge over the property to the value of their 50% contribution.
JA: Where are you? It matters because laws vary by location.
Customer: England
JA: What steps have you taken so far?
Customer: Contacted a few mortgage providers but they are unsure how to deal with the situation
JA: Is there anything else the Lawyer should know before I connect you? Rest assured that they'll be able to help you.
Customer: Not really
Submitted: 16 days ago.
Category: Law
Expert:  Stuart J replied 16 days ago.

Hello. Thank you for the question. It is my pleasure to assist you with this today.

Please bear with me as I will be online and off-line from time to time and therefore, may be delayed getting back to you. You will receive an email when I reply.

What is the thinking behind this plan please?

Customer: replied 16 days ago.
A multigenerational "homestead" so that my parents can live in a part of the property as they get older and we can be on hand to look after them. My father wants to try and maintain their independence as long as possible and avoid going into a care home. He wants to set this up now (he and my mum are 75) so that it is up and running as they get older.
Expert:  Stuart J replied 16 days ago.

There is nothing to stop the property being in the names of the younger and the older people and only the younger people being on the mortgage although it depends whether the lender will agree to that split.  There is no legal reason why not.

If you walk into a high street lender they will probably just refuse so if you want the best chance of getting what you are looking for, I would suggest that used a mortgage broker who can put forward a convincing argument for you.

The potential problem here for you is that it could be seen by the local authority is intentional deprivation of assets to avoid the payment of care fees so if they do eventually end up in care, you may be forced to sell the property to pay for the care.

It would only become an issue if you were no longer able to look after them.  Many people do this thinking that they can get round the house being sold for care fees and it doesn’t necessarily work.

Customer: replied 16 days ago.
I have already contemplated the intentional deprivation of assets and my father has set aside 300K in cash for that eventuality as well as having 7,000 GBP/month in pension. So I think we are covered on that front.
Expert:  Stuart J replied 16 days ago.

In that case, it’s a good plan and the only thing to consider is how you unravel this if you fall out.  I know you may be getting on famously now but it’s a question which I get on numerous occasions.  At least now you can make an informed decision.