Home Improvement Loan on House that is not your own

Q

quadrangle

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Putting this up here on behalf someone else.

An acquaintance has an elderly relative and the house needs some repair and refurbishment. €50,000-€60,000 would probably be the extent of it, maybe less but wants to spread it out over the longer term possibly 25 years or more to minimise the hit on his pocket.

I suspect that he may in time inherit this property, you don't go spending €50,000 on a house you will not own, but I would also imagine that he has not been given any guarantees.

What are his options as regards financing such work as Banks cannot put a charge on a property that is not his.

Wouldnt be sure on his personal finances.
 
He would be a foolish man to borrow any money for works on the relative's home. I expect a bank would require the loan to be secured, probably on his own house.

I would be wary of advising any elderly person to enter into any arrangement to secure funds by transferring their property to any one else

I suggest that they both need legal advice if they intend to try and put some agreement in place as to how monies raised to refurbish the house can be secured.

mf
 
The way I see it, he has a few problems

1.The relative has no other family member to leave the property to, but may choose to leave it to the church being a deeply religious person
2.He wants to nail down his place on the will
3.The Bank may not fancy it so he will have to get a personal loan at higher interest which may not be enough
4.There is no guarantee that the place will fall to him eventually and I believe that it is not a subject easily brought up for discussion
 
quadrangle said:
The way I see it, he has a few problems

1.The relative has no other family member to leave the property to, but may choose to leave it to the church being a deeply religious person
2.He wants to nail down his place on the will
Click to expand...

Could you not talk to your acquaintance and explain to him how wrong it would be to make these home improvements if it’s an effort to influence his elderly relative’s decision and nail down your acquaintances place on the will.

If this elderly person wants to leave the house to the church, so be it.
 
sounds very risky to me.
There are grants available to the elderly for insulation, accessible bathrooms, etc. He should point his relative towards these and then run a mile.
If the property is going to end up in the hands of the church, then maybe they should be looking after him.
 
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