QUESTION: We are struggling to pay our mortgage since my husband lost his job. We have seen a company advertising which offers to buy properties but then you can remain in the property paying rent each month. Is this a good idea?

ANSWER: There have been a number of adverts in the press saying they will buy your house to help you out of mortgage arrears often they will offer less than the market value. You could then be offered an Assured Shorthold Tenancy, the problem with that is it is only guaranteed for six months so after four months they can ask you to leave and this only leaves you with two months to find another property. The other problem you may face is that if you do stay in the property and were hoping for help with the rent you may be unable to claim Housing Benefit as the regulations state that you will not get Housing Benefit if you occupy a house that you formally owned within five years and could not have continued to live there without giving up ownership. You would normally have to show that your lender was threatening to repossess the property.

QUESTION: I have just made some changes to my will and my solicitor suggested I think of getting a Power of Attorney put in place in case I suffer from mental illness later in life. He informed me of some recent changes to the law.

ANSWER: Before October 1 you could make an Enduring Power of Attorney (EPA) but this has now been replaced by a Lasting Power of Attorney (LPA). An LPA like an EPA will still allow the donor to nominate one or more attorneys. They are two types of LPA a donor can make: Property and affairs which is similar to the EPA and Personal Welfare which can include provisions for giving or refusing consent to medical treatment and other personal decisions such as where you live.

The cost of registering an LPA is £150 compared to an EPA which was £120, the increase is said to reflect the additional safeguards put in place. The LPA form is longer as it contains many of the options a solicitor may have added to an EPA. This will enable you to decide what you want to put in your LPA giving you greater flexibility and choice. The forms are now laid out in an easy to use format. They are designed to be filled in without the need for legal assistance. Once completed and signed the form must be sent to the Public Guardian for registration. The LPA must also be accompanied by a certificate from an authorised person which confirms the donor understood the purpose and scope of the LPA and that there was no fraud or undue pressure placed on you.

QUESTION: I have an Existing Power of Attorney for my parents which at the moment is unregistered. I have heard of the changes and am unsure what I need to do.

ANSWER: As you made your EPA before October 1, 2007 it can still be used. If in the future your parents are unable to make financial decisions for themselves then the EPA will need to be registered. However you do have the option of replacing it with an additional, personal welfare LPA to cover the kind of decision not included under your EPA.

Information kindly supplied by Wyre Forest Citizens Advice Bureau (01562 823953).