Mortgage query

[Sootica2000]

I currently have a mortgage in joint names with Halifax for myself and my mother who lives with me. We are both on the house deeds.

She is now retired and the mortgage has always been paid from my salary (she paid a lump sum for the house in lieu of paying monthly).

Is there any reason why I can't apply for a mortgage on the property in my own right as we have now come to remortgage? She will still be living here, and her name will remain on the deeds. Thinking long term, if anything happens to either of us (i.e. if she needs to go into residential care) what would the situation be with the property?

She is happy for me to apply for mortgage in my own name but I want to make sure everything is covered first.

Thanks,

Karen

[johnny37]

In the absence of any other answers this is not an expert answer. Firstly I believe exemption from care fees only applies if your spouse is living in the house. Secondly, if you become sole owner, I looks like your mother has 'gifted' her share to you. Techincally the social services could say this was done to avoid care home fees and claim the house anyway. Thirdly, lenders are unlikely to give you a sole mortgage if someone else's name is on the deeds. They would want to be sure no-one else has an interest in the property. I assume her half is less that the nil rate band for inheritance tax (�300000) so inheritance tax would not apply if she gifted it to you outright, (ie have your motheres name removed from the deeds) but care fees might still be claimed for up to seven years..

[fiesata]

If a house (or money or other items) is gifted to claim benefit this will be taken into account as notional income (income you have deprived yourself of)
However if this was done years before there was any indication of the need to claim then it is likely that this would not be taken into account as the claimant could not deprive themselves of an asset for which there was no foreseeable reason