Mother gifting house to me but retaining smaller house to renovate and move into

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Wonderwall

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I've just found out the house I'm renting is to be sold. I'm a single parent of 2 children. My mother has a 2 storey 3 bed house with adjoining small building that could be converted into a one bed house. It has a separate folio. She has offered to sign over the 3 bed house to me if we could convert the smaller building. It would need a lot of work. She is in her late 70's and living alone and would love for us to live beside her for company and security. I visit every day anyhow and look after her as she needs so it would make sense. My question is what are the financial and legal implications we need to consider? What grants would she be eligible to apply for to renovate the property? She only has a pension and i only have a part time salary as I'm a carer for my son. I wouldn't be eligible for any mortgage
 
I don't know if there are grants for converting a building to a house.

But how much is your mother's house worth?

How much would it cost to convert the other building?

At 78, she could take out a lifetime loan for 32% of the value of the house.

How Much Can I Borrow on a Lifetime Loan - Spry Finance

How much can I borrow? You can borrow a minimum of €20,000 and maximum of €500,000 from Spry Finance depending on your property value and age
www.spryfinance.ie www.spryfinance.ie

The interest rate is high, but it's fixed for the period of the loan.

And you or she could repay the interest.

She could rent the house to you if you qualify for social housing.

Brendan
 
Thanks Brendan. We're just looking into things at the moment, I'm still in shock at receiving the news that the house I'm renting is to be sold. I'm living here since 2018 so we are well settled in it and it came out of the blue to be honest.
The smaller building at my mams was originally a small 2 bed house but was always used by my parents as a storage area/shed so is at the moment just a big open space. It's in a terrace of houses and the majority of smaller houses like this have been extended. They are one level and my mams main house if only 1 of 3 two storey houses in the terrace.
With the lifetime loan are there any main issues to consider or any pitfalls you are aware of? My main concern is that my mother is protected in all of this as what she is suggesting to do would benefit my kids and I so much but I would only do it on the condition that her needs are met firstly and that she's secure. It is a huge opportunity for me and much appreciated. Any loan she would take out would be repaid by me. I'm putting in a social housing application tomorrow. I was refused once before but that was when I was on full salary and before I had to take carers for my son. On my current wage I would be eligible for social housing. It was mentioned to us that if I was on the social housing list, the Co Council would consider renovating the house for my mother as she would be downsizing and freeing up her own home for me and my family. Is this correct?

She has already noted in her will that the house is to be left to me.
 
Forgot to say, my mothers house is worth E250,000 approx and it would likely take E70,000 to E80,000 to renovate the other property
 
The Spry Finance Loan would be perfect for your needs.

If you get a grant to do up the house, then you would not need as much.

Key Post - Spry Finance Lifetime Loans

I find the Spry Finance website complicated so this is my summary of it. If you are at least 60, you can take out a Lifetime Loan from Spry Finance. There are no other providers in the Irish market which is a pity. You do not have to make any repayments, they will roll up the interest. The...
www.askaboutmoney.com

Your mother is fully protected. She does not give up ownership of either property.

Brendan
 
That's definitely worth looking into for sure. Thanks Brendan. We're going to chat to the Co Council to see what grants they might have.
 
Brendan, can I just clarify something. If my mother decided to take a loan with Spry and I was paying it back each month, what would happen if she were to pass away before the loan was paid back? Could I continue to just pay it monthly until it's cleared or would it have to be paid from her estate, e.g. would we have to sell the house to clear it if I didn't have the total funds at the time to clear in one go?
 
The loan must be repaid within one year of your mother's death.

You could get a mortgage from another lender.

Or, if you are 60, when your mother dies, you could get your own Lifetime Loan from Spry.

Or, you could sell the second house and use the proceeds to clear the mortgage.

Brendan
 
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