One of my sisters has learning disabilities and we would like to explore the possibility of helping her to buy a home so she has a secure place to live for the future.
She has been subject to financial abuse in the past and remains vulnerable to this so are concerned about a property being in her name alone.
We've been advised that joint ownership is complex due to tax and inheritance issues.
Does anyone have any pearls of wisdom on navigating this issue? A family trust has been mentioned in the past so any experiences of that anyone is willing to share would be appreciated.
Thanks in advance.
Written by
HannahSte
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Hi Hannah. One of the important things to keep in mind is whether your sister receives support from social care or is likely to in the future. This is because social care is chargeable (in England) and her home would be taken into consideration to pay for her care. The usual way to protect property (and any capital your sister might receive, for example from inheritances) is for it to be put in a discretionary trust. However, your circumstances are more complicated as a mortgage would be involved. You could seek advice from a solicitor who is expert in trusts (Mencap have a list of these) as there are other types of trust that might be better.
My son has a learning disability, he is 25 & I have sorted out a mortgage in his name recently.
I became his Lasting Power of Attorney (POA) for financial matters. I did not go to a an expensive solicitor for this. I did it myself. You need two witnesses & the agreement of the person you are acting for.
Then I applied for a mortgage on his behalf. The copy of the POA allowed me to deal with the solicitor & bank.
My son works full time in a job he enjoys. This is unusual for a person with a learning disability but it keeps him focused & occupied.
I have set up a joint bank account so I can have access to the account. I set up direct debits for all house hold bills & mortgage. His wages go in each week to cover & I just control this by online banking. I have given him a pre-loaded card which I load each week with money from his account. He spends or saves this on what ever he wants. It’s contactless so easy to use. If he looses it or gets it stolen, then only the money that is in the card will be gone. He has lost the card 3 times but I have frozen it in time & ordered him a new card.
I always tell him how much he has to spend & what bills are being paid.
So getting a mortgage for a person with a learning disability can be achieved.
Hi. I would suggest you contact My Safe Home - they are effectively a mortgage brokering/support organisation based in the Birmingham area. They work with one or two mortgage lenders to set up a housing arrangement known as HOLD - housing options for learning disabled. The LD individual can effectively own their own home using some family finance, possibly some housing association support and an interest only mortgage. They set this up for our son 13 years ago and it has worked brilliantly.
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