Posted on 29 September 2012 by sarah
My father has suffered a stroke. He will not walk again. The cottage he lives in is totally unsuitable, with only one room accessible to him and no way of reaching the outside world except by ambulance. I would like to purchase a bungalow for him ASAP. It would be far less stressful and quicker, I'm guessing if I got a mortgage for the property. This would allow my father to consider the sale of his home over a period of time. I would hope that within a year, his cottage would be sold, in the meantime it would be rented out to help pay the mortgage on the bungalow. Could I remain in the house I share with my partner and buy it on a regular mortgage? would I need a buy to let if I don't move in with my father? What would you advise in terms of a mortgage that could be paid off within 12 months or so?
With regards to the mortgage, you should be able to raise up to 75% of the purchase price on a normal residential mortgage. It would be classed as a home for a dependent relative and no would be no need to worry about buy to let. The amount you can borrow will depend on your income covering any existing mortgage as well as the new mortgage without any allowance being made for the income received by your father for renting his cottage.
The choice of mortgage really needs to be restricted to products that do not have an early repayment charge. This way you can take the mortgage term over a longer period to keep the monthly repayments down, but maintain the option to redeem the mortgage early without any financial penalties.
I believe we can help you and that you would benefit from speaking to one of our independent mortgage advisers. Please call 0344 346 3672 and tell the consultant the date and title of your question, they will then be able to help you find the right mortgage for your situation.
You should also take a look at the Money Advice Service website for information about long term care and what help your father can get. This is a free, independent and unbisaised service which can help you decide whether you father would be better of in his own home or in care: https://www.moneyadviceservice.org.uk/en/categories/choosing-the-right-care-services
Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.
We recommend you seek professional advice with regard to any of these topics where appropriate.