Pirchasing a property from someone I have power of attorney for

[Nel110282]

Hi

My grandmother has vascular dementia and since the passing of my grandfather last year she now lives in residential care.

Myself, my sister and my mother all have lasting power of attorney for my grandmother for both financial and health purposes.

My grandmother's house has been for sale for over a year now. It needs a lot of work and I am now thinking of purchasing the property myself to renovate and live in.

I've discussed this with my sister and mother and they are both happy with this and would prefer to keep the property in the family if possible.

My question is can I legally do this and if so is there anything in particular I need to do?

Thanks in advance.

 

[Shedrech]

hello @Nel110282
a warm welcome to DTP

yes you are allowed to buy your grandmother's property .... you will have to ensure that you pay a fair market rate, though as you have had it on the market you should, with the estate agent, have an idea of it's worth

you, though, cannot act as Attorney for the sale as that would be a conflict of interest ... good solicitors/convenyancers should have come across this situation before and be able to deal, so make sure check this with the one who will act for you and the one who will act on behalf of your grandmother (do not use the same)

 

[nitram]

You may also inform have to inform the COP, not sure with multiple attorneys, ask the OPG

5.7 I want to sell the donor’s home​

...
...
Buying the donor’s property or selling it more cheaply
You’ll need to apply to the Court of Protection if:

you’re selling the donor’s property – not only their home but also other valuable items such as cars or jewellery – below market value

you want to buy a valuable item of the donor’s property yourself

If you don’t apply to the court, the LPA may be cancelled and action may be taken against you if you haven’t acted in the donor’s best interests.

Applications to the court cost £365 and are paid from the donor’s funds.

LP14: How to be a property and finances attorney (web version)

www.gov.uk

 

[Nel110282]

Thanks for the quick replies.

I shall have a look at finding a good local solicitor and have a good read of the link ?

 

[Ruth1974]

Hi

My grandmother has vascular dementia and since the passing of my grandfather last year she now lives in residential care.

Myself, my sister and my mother all have lasting power of attorney for my grandmother for both financial and health purposes.

My grandmother's house has been for sale for over a year now. It needs a lot of work and I am now thinking of purchasing the property myself to renovate and live in.

I've discussed this with my sister and mother and they are both happy with this and would prefer to keep the property in the family if possible.

My question is can I legally do this and if so is there anything in particular I need to do?

Thanks in advance.

 

[Ruth1974]

Discuss it with your solicitor. She will need to also have a solicitor appointed so between them they can make sure everything is legal. Get the place valued and pay the market value as well.

 

[prittlewell]

We bought my Mother’s bungalow, when we were PoA for her.
You need to make an application to the Court of Protection to buy the property as you have an interest. You have to provide 3 written valuations of the property and give details why it would be in the person you are acting fors interest for you to buy it. The process took about 4 months and we were issued with a court order which the solicitor needed to sell the property.

We used two solicitors within the same firm, one acting for my wife and I as purchasers, and one acting for my wife and I as POA’s for my Mother. It took me a while to find a solicitor who could understand what we wanted to do! Telling them I was both the seller and buyer confused them.

We got three valuations (two from estate agents and paid for a third one to be done by a chartered surveyor) and took the highest of the three. We then deducted what we would have paid in estate agent fees, and that gave us the proposed purchase price we submitted to the CoP.

We also had to supply a copy of the Deprivation of Liberty form that Mum had had done by the Social team, which I assume showed it was unlikely she would be able to return to the bungalow.