Forum Home → Discussion → Housing costs → Thread
Loan from a relative
Wondering what might be the best way round this - client needs to move due to disability, husband gave up work to care for her, they get IS including ISMI for current home, but can’t afford the shortfall and it’s not suitable for her any more. They want a bungalow. Problem for them is after selling current house will have shortfall of £20,000 on the cost of the bungalow. They cannot get a new mortgage to cover that because on benefits. Her father has offered to lend them the £20,000 but they need additional income in order to pay him back. Can’t get ISMI for it because he won’t charge interest and even if did, no help to them in repaying the capital. Ii looked at shared ownership schemes but they all seem to be for first time buyers and wouldn’t get them the property they want. If they give the proceeds of their sale to the father and he buys the bungalow and rents it to them are potential problems with deprivation and contrived tenancies. And isn’t what they want. Is there any way of them buying it with the father and him charging rent on the portion he owns? Which they could claim HB for?
It might be a case where equity release could work.
It might be a case where equity release could work.
Sorry Gareth, can you explain, not sure what you mean.