I own a one third share in a bungalow, my two sons each having a third share. My eldest son shares the bungalow and pays the mortgage and insurance and my pension covers utility bills etc. My younger son lives elsewhere. My son's minimal "needs" are why he has stayed with me but I am now considering his and his brother's future. We would like to start increased payments on the mortgage to try and either pay off or drastically reduce the mortgage before I die. However, I am wondering where this would leave me in terms of care fees. I am certain my son will take care of me for as long as is necessary (although this is not an expectation on my part) but if I need extra care in the home, or residential care will there be a charge put on my one third ownership by the Local Authority. I would like to reduce my share in the bungalow but realise I need to be cautious.
1 Would it be better not to reduce the mortgage so that there is still debt on the property.
2 Would the LA put a charge on my share if I needed care. If my son sold the bungalow after my death, would the local authority demand payment.
3 Would my sons be able to make me leave the property, firstly with my one third ownership, and secondly if I reduce my ownership to, say, 10%. I would not expect this to happen but my eldest son is not of strong character and who knows what a new partner might persuade him to do.
4 Could I gift my share to my two sons with the stipulation that I can stay there until I die (or they provide me with suitable alternative accommodation) and would I have to pay them rent. My share is only worth around £150,000 so there will be no Inheritance tax.
5 Should my sons buy my share with the same stipulation as No.4
I'm really unsure of what to do and would appreciate any advice.