Hi everyone,
I'm for some advice/options on how I can help my mum financially in the short/med term. She is in a tough situation and I can see her 'giving up'. I tried to talk about money last night with her and she immediately cried and said that she doesn't want to be a burden. We are UK based (also trying to post on r/UKPersonalFinance)
Background:
Mum is late 50s & self employed: runs dog kennels. Market is highly volatile and business is low.
She has increasing health problems (and a few health scares) which mean working is becoming increasingly difficult, and depression is also setting in making it difficult for her to move forwards.
Very limited savings <£10k and little to no private pension from what she knows (She has been self employed for a long time, and when in full time employment over 10 years ago she thinks she opted out as much as possible as she was a single parent trying to make ends meet). Would qualify for full state pension in ~10years?
The house is mortgaged - probably around £60k left on the mortgage, with house value of ~180k?. She is currently on a variable rate because her income isn't allowing her to remortgage and fix. There is a life insurance policy on the house which will pay of the remainder on death - this will likely be invalidated if we take any of the below options.
When the pandemic hit, I did a full bank audit/clearout with her to minimise spending as much as possible - though it has probably crept in the past couple of years, so I could look at that again.
Outgoings likely £1500-£2k. I wouldn't be surprised if the shortfall is of the region of £1k per month currently.
Options:
I think we need to take some fairly big moves to help her - but I dont know about the practicalities.
1)I could afford to support financially for a while (although she is adamant she wont accept it).
2) Add me/my brother to the mortgage to try and bring the rate down? (We both have our own houses with mortgages already though)
2i) Use a remortgage to try and release some equity - do what with it though? Deposit for another house to rent out, try and bring some consistent income? HMO?
3) Sell the house to me/my brother on a buy to let (if we even could) and rent it back to mum for the BTL mortgage level?
4) rent out spare room to lodger? Part time job?
How feasible are options 2/3? What other options are we missing here?
Neither me nor my brother are interested in 'preserving inheritance equity' - we just want to see mum comfortable and able to enjoy the next 15/20 years as much as possible.
Thank you in advance for any help/advice that can be offered!
Submitted September 28, 2022 at 02:45AM by Future_FIRE177 https://ift.tt/2Zi0NjL
