O
opheliarose
Guest
Hi,
I am looking for advice on what is the best possible way to buy my parents home ( I would be a first time buyer, looking for a 92% mortgage) while also securing a section 32 Retirement apartment for my mother.
The situation is that I am 33yrs old and self-employed earning potential 100k p.a. (returned to work in last 6 months), my mother is 70yrs old with early stages dementia, and will in the future need full time medical care. So this is the first step on the road to securing her medical and financial care.
The current value of my mother's house is about 300k, but it badly needs about 200k worth of work done on it as it is in a very bad state. Because of this and the fact that I gave up my job 4 yrs ago and returned home to look after my dad while he was ill and then my mom, she has agreed to sell the house to me for about 190k .The retirement apartment is 280k, so she would use the 190k plus 90k to buy the apartment. However since the apartment is section 32, would it not make better sense if I was to buy it for her and offset this against my yearly tax bill? 15% per annum over 7yrs. At the moment we are unsure how to go about this. I should also mention that when I buy and refurbish the house, I will need for the first 2-3yrs to rent it out to help pay the mortgage. Realistically, given that I am self-employed I may not be in a position to buy the house for a year to eighteen months until I have proof of earnings for 2yrs. If anyone knows if it is possible to do this sooner, please let me know.
Not to complicate matters, but we are also in the middle of selling part of the farm, for about 150k a) so that she can have a small nest egg in the bank b) to payoff an outstanding small debt on the land and c) to raise the 90k. My mother has a means tested non-contributory old age pension, so she is very anxious that she is not cut or hit with a high tax bill, hence the decision to hold onto the larger portion of the farm which is rented out. The estate i.e house and farm went through probate about 2yrs ago after my dad died.
Also in light of all this who is the best person to talk to solicitor, accountant? Thanks for your help!
I am looking for advice on what is the best possible way to buy my parents home ( I would be a first time buyer, looking for a 92% mortgage) while also securing a section 32 Retirement apartment for my mother.
The situation is that I am 33yrs old and self-employed earning potential 100k p.a. (returned to work in last 6 months), my mother is 70yrs old with early stages dementia, and will in the future need full time medical care. So this is the first step on the road to securing her medical and financial care.
The current value of my mother's house is about 300k, but it badly needs about 200k worth of work done on it as it is in a very bad state. Because of this and the fact that I gave up my job 4 yrs ago and returned home to look after my dad while he was ill and then my mom, she has agreed to sell the house to me for about 190k .The retirement apartment is 280k, so she would use the 190k plus 90k to buy the apartment. However since the apartment is section 32, would it not make better sense if I was to buy it for her and offset this against my yearly tax bill? 15% per annum over 7yrs. At the moment we are unsure how to go about this. I should also mention that when I buy and refurbish the house, I will need for the first 2-3yrs to rent it out to help pay the mortgage. Realistically, given that I am self-employed I may not be in a position to buy the house for a year to eighteen months until I have proof of earnings for 2yrs. If anyone knows if it is possible to do this sooner, please let me know.
Not to complicate matters, but we are also in the middle of selling part of the farm, for about 150k a) so that she can have a small nest egg in the bank b) to payoff an outstanding small debt on the land and c) to raise the 90k. My mother has a means tested non-contributory old age pension, so she is very anxious that she is not cut or hit with a high tax bill, hence the decision to hold onto the larger portion of the farm which is rented out. The estate i.e house and farm went through probate about 2yrs ago after my dad died.
Also in light of all this who is the best person to talk to solicitor, accountant? Thanks for your help!