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Posted: Wed Feb 01, 2017 4:44 am
My mum has recently been hospitalized long term due to ongoing illness and has now lost capacity.
Mum has an interest only mortgage with a balance of Â£15,000 but she also has come into funds from commuting a pension which would be enough to pay off said mortgage.
Should I as Power of attorney do this for her. It was her goal to be mortgage free and although she may be incapacitated most of the time she still has lucid moments when I would love to cheer her with news that she owned her small flat outright.
Posted: Wed Feb 01, 2017 7:43 pm
Does she have life insurance ?
Posted: Thu Feb 02, 2017 7:37 am
she still has lucid moments when I would love to cheer her with news that she owned her small flat outright.
All else aside, if I were you this would be the ultimate decider for me.
Posted: Thu Feb 02, 2017 10:57 pm
It is difficult to say without having more detail. As her POA you should be managing her assets for her financial benefit, so this should be a financial decistion not an emotional one. Having said that with a interest only mortgage it is almost certainly the right thing financially to pay it off.
The harder decision is going to be after that, if she is never going to be able to return to the flat, because you should not be leaving it empty. It either needs to be sold or rented out to generate some income.
Posted: Fri Feb 03, 2017 11:15 am
This is best discussed with a friend or family member who knows Mum.
Posted: Sat Feb 04, 2017 2:23 am
If she has life insurance, then I'd be pragmatic, if you think it will make her happy, id lie and say it's paid off but not pay it off, what's the point, she will no doubt forget and you'll have to tell her again and again anyway.
Posted: Sat Feb 04, 2017 10:00 am
Thank you all for your thoughts.
Unfortunately mum is terminally ill and wont be back home again. The only life insurance is a sun life basic which pays out Â£1,350 to help with funeral costs. No other policies that I can find.
Posted: Sat Feb 04, 2017 10:04 pm
My commiserations. Well in that case paying it off now would seem to simplify things when the time comes, you won't have to deal with paying off a mortage along with all the other crud that goes with this sort of thing.