Should recently retired parent clear her mortgage with her lump sum + best way to help her move

if it was help to buy and in year 18, then claw back will definitely apply unless sale is for less than original beneficial price. If between than and market value then you’ll hand back sale price - beneficial value, if sale price more than original market value only then does the profit % claw back come in to play. almost everyone on these deals is in the middle disastrous period and the on,y sensible thing to do is wait the 20 Years.
 
Just wrote this out for a mortgage advisor
  • I have a mortgage in north city Dublin. Bought in 2019 for 375k, current valuation circa 500k. Current mortgage is 250k, on a 1.95% fixed rate locked in for 6 more years with Avant. My repayments are 1050 ish a month. I earn 140k per year, no kids (no plan for kids), no debts, no loans.
  • My mam is retired, has two small pensions, earning her 1620 monthly, she's on a tracker mortgage and pays approx 715 a month. She has 45k remaining on her mortgage, worth approx 220k. She has approx 80k cash (mixture of savings and retirement lump sum). She does not have to pay any claw back to the council.
The plan/hope/goal/question is: can my mam sell her house for 220k, and then using the proceeds (approx 180k) + some savings, to purchase an apartment in Dublin north city near me, or surrounding areas, with my help? We think an apartment here will cost around 300k, so I'd be looking at getting a second mortgage of approx 100k which I pay for her. Based on my calculations, that'd be approx 500-700 depending on the term, if we got a rate of 3.95% based on the LTV being below 60%, which I can afford.

I honestly have no idea of the implications that would have for me to 'own' a second home / have two mortgages. I really just want to help her move closer to me / somewhere nice for her retirement.

Lastly, sometime in the next 5-10 year my mam expects inheritance in the range of 80-100k. Once that comes in, she will clear the remaining mortgage.
 
Setforlife said:
if it was help to buy and in year 18, then claw back will definitely apply unless sale is for less than original beneficial price. If between than and market value then you’ll hand back sale price - beneficial value, if sale price more than original market value only then does the profit % claw back come in to play. almost everyone on these deals is in the middle disastrous period and the on,y sensible thing to do is wait the 20 Years.
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For whatever reason she doesnt have to pay it :shrug
 
Clamball said:
So the RSU of €10K and the shares of €150K are off the table, any redundancy to add to the pot? You will know for definitive this year sometime.

Currently your Mum
€220 equity in home
€35K debt
No pension lump sum if she has a debt?
€? Clawback to council if moving

You
€200K equity in home
€35K savings
€250K mortgage
€? Stock in previous employers company

AIB do top up mortgage one of their options being “support for family buying a home of their own” but Avant don’t offer this option. So the only way you could release €100K from your house would be to switch lenders and apply for a top-up but I don’t know how feasible that all is. Each step may prove to be impossible due to individual circumstances.

At the moment I think the only thing you can do for you Mam is to give her an interest free loan to pay off the debt of €35K, then you give it 12 months to see if you get anything on the old share option, build up your savings and wait to hear what the council says.
Click to expand...

Mum: pension lump sum of 50k, plus 30k savings. No council claw back.
Me: no stock worth mentioning, it's as likely to be 0k as 100k.

I really dont want to switch from my fixed rate avant to AIB if I can help it. I got 7 years on 1.95% in 2022 and that feels really valuable.
The 35k debt is on her mortgage, so she could clear that with savings, I was advised against that here and think its the better choice for her to have cash for definite.
 
I also started a new job so need to wait til the summer to have 6 months + passed my probation for mortgage approval.
 
I would love help to clarify something.. is my best option to get a top up mortgage, where I effectively borrow 100k cash against my mortgage, and then do that thing where I gift it interest free to my mam and then she pays me back when she gets her inheritance?

Is it not an option for me to get a second mortgage with her instead? Is that not a thing?
 
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