Paying off son's mortgage.

Thanks all. Much to think about!

I agree with NanKate teifi. You need a properly drawn up legal document to protect your financial interests. I know we don't like to think it's necessary when it involves our own AC, but sometimes it is.

We thought we had everything protected when we invested, along with my brother, the money our ES and his wife needed for their deposit but we hadn't been careful enough and now he's estranged us, we'll more than likely never get our money back.

Things change, things can go wrong so unless you can afford to lose what's needed to pay half off half his mortgage, please be very careful.

If your son is married and becomes unexpectedly divorced…could you risk losing your capital if the property has to be sold?

Whatever you do you must get a solicitor involved and draw up an agreement.

I would be concerned that it might come under Deprivation of Assets which would matter should you ever need care. But it may not as it has created an income.

I would certainly get the best professional advice you can. It does seem it could suit you both but the law is a strange thing when you don't know it.

I’m not sure you can do that in the eyes of the law and HMRC. It could be seen as deliberately reducing your savings ‘in case’ you need care later.
You would also need to declare the rental income and possibly pay tax on it too, depending on your other income.
I’d definitely seek legal advice before doing anything.

I don’t know how old you are or your financial circumstances but are you aware of the seven year rule?

Could you buy the house in your name and rent it back to him at a low rent?That way IF he gets into financial difficulties you still have the investment to sell .I'm assuming he'll get it anyway when you die?

What happenss if he is made redundant cannot get another job and cannot afford to pay you back. Could you manage without capital and income?

What happens if for some reason he gets into a complete financial mess (do not say 'he won't'. lots of parents have said that and then had a nasty shock) and the house is reposed? Could you manage with your savings irretrievable gone and no income?

Whatever you do make sure that you get a solicitor to draw up a legally binding agreement. Do not, again, say 'I trust my son'. Many a parent has done that to their financial and emotional cost.