PROPERTY PURCHASE QUERY FOR MOTHER IN LAW WITH DEMENTIA

BRUCE666

New member
Feb 2, 2024
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Hi. I was wondering whether anyone might able to advise on any issues or things to be aware of in this scenario. I should add that we are about to consult a solicitor but just wanted a heads up on anything.

My mother in law has Lewey Bodies dementia and has been resident in a nursing home for just over a year. Because she was originally sectioned under 117 the Local Authority are part funding her care whilst she tops up the difference.

Her house has remained empty for that period whilst we decided whether to simply sell it or purchase it ourselves. We are very lucky in that my mother in law has sufficient savings as such that she could totally self fund for a number of years and according there is no need to sell the property. We have now decided that we can afford to buy her house and of course what we pay her can also go towards maintaining her care.

Currently my wife has fully registered Power of Attorney for both Finance and Health. We are totally mindful that because she lacks mental capacity her best interests must be maintained by the involvement of the Office of the Public Guardian. We also appreciate that there is an obvious conflict of interest since my wife has POA but is also the one wishing to purchase the house.

My basic understanding is that initially we would obviously need to get 3 valuations so it can be established what the correct market value is?

Once we've gone through that stage is anyone able to advise of what the process involves and how long it might take?

My other query is that her house is ready to move straight into and we are looking to sell our current property as soon as possible. Accordingly, if we wanted to move now but the court process was still ongoing would that be viewed as OK as long as in the interim we were paying her the correct market rental rate?

Many thanks for your help and any observations
 

nitram

Registered User
Apr 6, 2011
30,606
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Bury
Is there another joint and several POA who could act for MIL in the sale of the house and/or rental to you at market rate?
 

BRUCE666

New member
Feb 2, 2024
3
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Is there another joint and several POA who could act for MIL in the sale of the house and/or rental to you at market rate?
No. There is a brother in law but he didn't want to get involved in any potential responsibility for dealing with his mum's financial affairs. Looking at the paperwork I am listed as a ' replacement POA ' for both Finance and Health. However, that would obviously be a conflict as I'm one of the parties looking to purchase the house.

Why did you ask about another POA? Would it be possible to persuade my brother in law to get become a POA or is that not possible at this stage. Were it possible what would be the advantage?

Whilst scouring this forum for any vaguely similar scenarios I spotted something I was worried about. One discussion seemed to suggest that once a solicitor got involved there would be a ' deputy ' appointed who would not only oversee this transaction but would also take over the general management of my mother in laws financial affairs. Is this the case and is this preventable and how? I don't really want them involved in all her financial affairs that we've dutifully managed thus far. We keep all receipts and we haven't even attempted any legitimate gifting from her finances.
 

nitram

Registered User
Apr 6, 2011
30,606
0
Bury
Why did you ask about another POA?
They could have acted for MIL in the sale to your wife without without any conflict of interest, assuming they would not live in the house.

No need for deputy who cannot coexist with POA.

I'm not sure with POA the OPG has to be involved, the house can be sold to your husband and a trustee appointed to ensure that MIL's interests are protected with your wife acting for MIL.

Failing that a one off application to the COP to allow sale to your wife would be required, ~£400 cost and a long delay.

Sound out some solicitors.
 

BRUCE666

New member
Feb 2, 2024
3
0
They could have acted for MIL in the sale to your wife without without any conflict of interest, assuming they would not live in the house.

No need for deputy who cannot coexist with POA.

I'm not sure with POA the OPG has to be involved, the house can be sold to your husband and a trustee appointed to ensure that MIL's interests are protected with your wife acting for MIL.

Failing that a one off application to the COP to allow sale to your wife would be required, ~£400 cost and a long delay.

Sound out some solicitors.
Sorry maybe I didn't perhaps make it clear. I am the husband and it's me AND my wife who are looking to purchase the house. My wife has lasting POA for her mum. Does that change your advice?
 

nitram

Registered User
Apr 6, 2011
30,606
0
Bury
It's a moot point whether with you as sole legal owner and wife with beneficial interest would be allowed, you can change to some form of joint ownership afterwards without any tax implications. Don't forget trustee.

My advice was to have a free session with a few solicitors.
 
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