Can mum sell her flat?

Discussion in 'Legal and financial issues' started by Charlikat, Feb 22, 2015.

  1. Charlikat

    Charlikat Registered User

    Feb 22, 2015
    1
    Hello people, can anyone tell me if my mum would be allowed to sell hear leasehold flat. My stepdad has dementia and was taken into a care home last October, we don't have power of eterney over him but three years ago my mum was advised to change the deeds to joint tenents in common and has willed her half of the flat to me. She is terminally ill and I would like her to sell the flat and go into sheltered accomadation but I'm not sure if she can sell it because she dosnt have power of eterney over him or his finances. Also there is a mortgage on the flat which is half the value of it so there would only be approximately£20000 equity.
    I already know that when my mum dies and I become joint owner of the property with my step dad I can't be forced to sell because I do not inherit the motgage debt, he does which is more than half of the house value. The other thing we have thought about is me paying my stepdads debt off in return for his share signed over to me instead of passing to me upon his death, leaving me free to rent the flat out and pay for mums sheltered housing. Has anyone any advice who has been through similar circumstances please.
     
  2. canary

    canary Registered User

    Feb 25, 2014
    9,327
    Female
    South coast
    Im pretty sure that you are right Charliekat - I dont think she can sell his half of the flat without POA or Court of Protection. Does anyone have legal power over his finances? I am wondering how his CH fees are paid? Also, bare in mind that even if the property could be sold the proceeds from his half of the flat cannot be used for her purchase - they become available for his CH fees!
    I think the idea of you buying his half of the flat is a possibility (though it still has to be done whoever has POA or CoP), but do your sums first, finding out how much you could rent the flat out for and how much the rent for sheltered accommodation (including any annual fee) is, to make sure everything is covered financially. If there is still outstanding mortgage on the flat you must tell the lender that you would be renting out the flat as it may alter your mortgage.
    I would suggest that you go and talk to a solicitor - you would probably have to use one to draw up the contracts if your bought your step-dads half anyway.
     
  3. Kevinl

    Kevinl Registered User

    Aug 24, 2013
    4,664
    Salford
    Without POA I don't think you can do anything other than go down the Court of Protection route which will take time and cost money no one can do anything without his say so and as he lacks capacity and there is no POA there is no option as far as I know.
    You could move your mum and let out the flat but you would have to keep paying the mortgage so would it be worth it? And that's if the mortgagees agreed you may need their permission to lease it and they may insist you change to a Buy to Let mortage which of course you can't do.
    One for the experts and that's not me I'm afraid.
    Possibly someone could clarify on the bit " I can't be forced to sell because I do not inherit the mortgage debt" when the flat is eventually sold, however this comes about the debt owing to the mortgage company will have to be settled before anyone gets anything as so as I see it half the mortgage is effectively yours, sorry if I've not explained that very well. Let's say (should your mother pas away first) the flat is worth £100k so you and SF each have a £50k share and the mortgage is for £50k, when you sold you would only get £25k and the other £25k to the SF's estate and £50k to the Building Society I believe.
    I can't see a way forward that doesn't involve the CoP, sorry.
    K
     

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