Purchasing Mothers Council House
Discussion
Mother currently rents a council house (33 years), 3 bedroom and in a very good area. She is worried about the future and possibly having to move to a smaller house with pressure from the council.
Paying full rent at the moment so they cant push her out.
Would like to provide funds to allow her to purchase the house and live rent free.
What would be the best route to provide her this funding with no or minimal tax implications ?
Can she pass the house over to myself after x amount of years or would this not be possible ?
She doesnt want the money we provide to her for the purchase to be lost if she has to go into a home and the goverment deem the house as her asset and going towards care costs.
Currently going through the process to find out the value and discount she would get from the council.
Any advice appreciated.
Paying full rent at the moment so they cant push her out.
Would like to provide funds to allow her to purchase the house and live rent free.
What would be the best route to provide her this funding with no or minimal tax implications ?
Can she pass the house over to myself after x amount of years or would this not be possible ?
She doesnt want the money we provide to her for the purchase to be lost if she has to go into a home and the goverment deem the house as her asset and going towards care costs.
Currently going through the process to find out the value and discount she would get from the council.
Any advice appreciated.
about 8 years ago I was in the process of doing the same with my mum...tenant of 40 years etc ...she died before we got it through ..cancer...diagnosed and gone within months 
Its easy enough, you need to consult a solicitor and buy it jointly with your mum, whoever dies first gets it, no tax liability etc Just like you buying it with a partner really
Its easy enough, you need to consult a solicitor and buy it jointly with your mum, whoever dies first gets it, no tax liability etc Just like you buying it with a partner really
Eric Mc said:
Just give her the money to buy it.
Can she not afford to rent it anymore?
Are you thinking of your inheritance perchance?
Is it as easy as giving her money to buy it, I presumed that the maximum gift you can give per year is £3000.Can she not afford to rent it anymore?
Are you thinking of your inheritance perchance?
No problem with paying the rent but the council are planning on carrying out some major insulation work on the house that requires her to move out for 3 to 4 month. Will provide her with another house / flat in that time with excess furniture put in storage. House will require to be completely re decorated from top to bottom. The works they are planning seem a bit over the top.
So one she doesnt want all the hassle at her age and two she thinks that they wont allow her back to the house since she is now on her own. Tried to convince her but having none of it.
Trying to help her out so would give her the money to buy the house, she can live rent free and have some more money each month to herself and look at leaving the house to myself (if that is possible)
Plan to see a solictor in the next few days to see the best way forward.
Blimey - fee complete renovation. What's the problem there?
I have a brother in law in a similar situation - living on his own in a Housing Association property and he gets up tight whenever they plan to do any work on the house.
Totally irrational.
As for giving your mother money, you can give her as much as you like. There are no limits.
Maybe you could give her enough top just pay the ongoing rent if she's worried about the rent.
I have a brother in law in a similar situation - living on his own in a Housing Association property and he gets up tight whenever they plan to do any work on the house.
Totally irrational.
As for giving your mother money, you can give her as much as you like. There are no limits.
Maybe you could give her enough top just pay the ongoing rent if she's worried about the rent.
I was in the same position, its not complex really, you buy the house together with your money/mortgage. whoever dies first the house goes to the other ....
get the forms from the council and get it moving, it should all take less than a few months
my only regret is not doing it years earlier....
get the forms from the council and get it moving, it should all take less than a few months
my only regret is not doing it years earlier....
Eric Mc said:
Blimey - fee complete renovation. What's the problem there?
I have a brother in law in a similar situation - living on his own in a Housing Association property and he gets up tight whenever they plan to do any work on the house.
Totally irrational.
As for giving your mother money, you can give her as much as you like. There are no limits.
Maybe you could give her enough top just pay the ongoing rent if she's worried about the rent.
Irrational maybe but you know how some think once they get on in years.She just doesn't want the hassle, the next door neighbours have bought their house and there are no council houses nearby. I have a brother in law in a similar situation - living on his own in a Housing Association property and he gets up tight whenever they plan to do any work on the house.
Totally irrational.
As for giving your mother money, you can give her as much as you like. There are no limits.
Maybe you could give her enough top just pay the ongoing rent if she's worried about the rent.
She has not long decorated a lot of the rooms and can't see the benefit to her.
I just didnt think you could hand over XXXXX thousands and the tax man not be interested.
She has no problem paying the rent but doesnt have the money to purchase, hence why I would provide the funds.
Don't think I can get my name on the deeds as she would be entitled to X% off the value due to the years she has been a council tennant.
Edited by tighnamara on Tuesday 18th February 17:55
tighnamara said:
Mother currently rents a council house (33 years), 3 bedroom and in a very good area. She is worried about the future and possibly having to move to a smaller house with pressure from the council.
Paying full rent at the moment so they cant push her out.
Would like to provide funds to allow her to purchase the house and live rent free.
What would be the best route to provide her this funding with no or minimal tax implications ?
Can she pass the house over to myself after x amount of years or would this not be possible ?
She doesnt want the money we provide to her for the purchase to be lost if she has to go into a home and the goverment deem the house as her asset and going towards care costs.
Currently going through the process to find out the value and discount she would get from the council.
Any advice appreciated.
Let's be upfront about this shall we. You want to buy the place with no tax implications. You want it passed to you asap in case the government sell it to fund any possible care home fees.Paying full rent at the moment so they cant push her out.
Would like to provide funds to allow her to purchase the house and live rent free.
What would be the best route to provide her this funding with no or minimal tax implications ?
Can she pass the house over to myself after x amount of years or would this not be possible ?
She doesnt want the money we provide to her for the purchase to be lost if she has to go into a home and the goverment deem the house as her asset and going towards care costs.
Currently going through the process to find out the value and discount she would get from the council.
Any advice appreciated.
It has nothing at all to do with you being concerned for her welfare. You simply want to buy the house at a discount and wait for the day it then passes to you when you can they release the huge profit.
This is so so wrong. Council houses are there for people who can't afford their own house and the rent reflects this. It is not for greedy children to see a possible profit and remove another council house from the already low stock.
Sir Bagalot said:
Let's be upfront about this shall we. You want to buy the place with no tax implications. You want it passed to you asap in case the government sell it to fund any possible care home fees.
It has nothing at all to do with you being concerned for her welfare. You simply want to buy the house at a discount and wait for the day it then passes to you when you can they release the huge profit.
This is so so wrong. Council houses are there for people who can't afford their own house and the rent reflects this. It is not for greedy children to see a possible profit and remove another council house from the already low stock.
Did expect such feedback but I can live with that, maybe some people have concerns about their parents welfare.It has nothing at all to do with you being concerned for her welfare. You simply want to buy the house at a discount and wait for the day it then passes to you when you can they release the huge profit.
This is so so wrong. Council houses are there for people who can't afford their own house and the rent reflects this. It is not for greedy children to see a possible profit and remove another council house from the already low stock.
Not looking for any profit, what I don't want is to lose money.
She has stayed in the house for over 30 years and wants to remain there, nothing wrong with that is there.
She has no funds and I have funds she can have.
I don't need to be greedy and if I did would have bought her house years ago. She was happy renting and still is but doesn't want to go through the upheaval of moving out for work to be carried out. The unrest will do her no good.
We are looking at purchasing without this work being carried out and are not looking at this as some quick buck.
She feels a bit of unrest due to having to move out of the house to get work carried out, she doesn't want to move out but council say work has been planned. She is worried about not getting back into her house she classes as home.
Your entitled to your opinion but are basing it on something you know nothing about regarding my or my mothers circumstances.
If you are happy thinking that is my intention so be it.
The rules allow you to buy and purchase so nothing wrong with doing that, what I don't want is to buy the house and not get what we paid back, not interested in big profits only interested in keeping my mother happy.
Thanks for your input it is appreciated and I understand where you are coming from but my sole thought at the moment is to make sure she is happy not if I am taking a council house off their books.
Edited by tighnamara on Tuesday 18th February 21:02
tighnamara said:
Sir Bagalot said:
Let's be upfront about this shall we. You want to buy the place with no tax implications. You want it passed to you asap in case the government sell it to fund any possible care home fees.
It has nothing at all to do with you being concerned for her welfare. You simply want to buy the house at a discount and wait for the day it then passes to you when you can they release the huge profit.
This is so so wrong. Council houses are there for people who can't afford their own house and the rent reflects this. It is not for greedy children to see a possible profit and remove another council house from the already low stock.
Did expect such feedback but I can live with that, maybe some people have concerns about their parents welfare.It has nothing at all to do with you being concerned for her welfare. You simply want to buy the house at a discount and wait for the day it then passes to you when you can they release the huge profit.
This is so so wrong. Council houses are there for people who can't afford their own house and the rent reflects this. It is not for greedy children to see a possible profit and remove another council house from the already low stock.
Not looking for any profit, what I don't want is to lose money.
She has stayed in the house for over 30 years and wants to remain there, nothing wrong with that is there.
She has no funds and I have funds she can have.
I don't need to be grey and if I did would have bought her house years ago.
She feels a bit of unrest due to having to move out of the house to get work carried out, she doesn't want to move out but council say work has been planned. She is worried about not getting back into her house she classes as home.
Your entitled to your opinion but are basing it on something you know nothing about regarding my or my mothers circumstances.
If you are happy thinking that is my intention or wish so be it.
The rules allow you to buy and purchase so nothing wrong with doing that, what I don't want is to buy the house and not get what we paid back, not interested in big profits only interested in keeping my mother happy.
Can I ask if you have to wait 7 years before the deed becomes enforceable? For example you 'lend' her the money and she signs it over in trust/whatever... yet its her house and if she needs to go into a home she is now seen as having assets and it will be the sold to pay for her care.
Du1point8 said:
Bet you dont give the XX% discount that will suddenly become profit to charity once you get the house in the end.
Can I ask if you have to wait 7 years before the deed becomes enforceable? For example you 'lend' her the money and she signs it over in trust/whatever... yet its her house and if she needs to go into a home she is now seen as having assets and it will be the sold to pay for her care.
Come on not the first time for someone to help there parent buy there council house. It is not a con it is something that tenants pre 2002 are entitled to do.Can I ask if you have to wait 7 years before the deed becomes enforceable? For example you 'lend' her the money and she signs it over in trust/whatever... yet its her house and if she needs to go into a home she is now seen as having assets and it will be the sold to pay for her care.
I am not worried where any profit goes, this can be used by mother if she ever has to sell and go into a home, I just want to make sure my initial money to purchase the house for her is secure and I can lay claim to it.
Is that so wrong.
johnfm said:
How much ££££ are you talking here?
If a decent chunk, I would suggest a decent lawyer who understands the current rules re: care costs and equity etc. might be the best money you spend.
Around £40 -50k, hoping to talk to a lawyer later this week or early next week as you say it will be money well spent.If a decent chunk, I would suggest a decent lawyer who understands the current rules re: care costs and equity etc. might be the best money you spend.
As much as Sir whatever above thinks my / our intention is not to make a load of cash from the house. my mothers well being and frame of mind are more important just that I can't afford to totally write of the above money.
Around my area the tenant has to go on the mortgage so it will either be in her name or in joint name (you may only be able to buy in joint name if you have been living there).
If for any reason the house is sold (usually within 5 years) after sale from the Council to your Mum then the diso
must be paid back.
i.e if she bought it tomorrow with a discoutn she couldnt sell it next year and keep the discount.
I am not sure what happens if ti is a joint mortgage and one party dies. i doubt the council want it back - although we have shortages of houses it seems liek councils want to, or are being pressured to sell houses.
If for any reason the house is sold (usually within 5 years) after sale from the Council to your Mum then the diso
must be paid back.i.e if she bought it tomorrow with a discoutn she couldnt sell it next year and keep the discount.
I am not sure what happens if ti is a joint mortgage and one party dies. i doubt the council want it back - although we have shortages of houses it seems liek councils want to, or are being pressured to sell houses.
Tighnamara
You can just give your mum the money for her to buy the property. If she's lived there for 33 years she'll be entitled to th full discount (between 60-75% IIRC), If she's been paying her own rent (as opposed to receiving HB she could have taken out a mortgage and purchased it the traditional way ),
It's quite common for children to help parents buy their council house, especially when the parents are getting on a bit.
ETA if her concern is about getting evicted she needn't worry. She will have a Secure Tenancy and can't be evicted as long as she doesn't breach the conditions of the tenancy.
You can just give your mum the money for her to buy the property. If she's lived there for 33 years she'll be entitled to th full discount (between 60-75% IIRC), If she's been paying her own rent (as opposed to receiving HB she could have taken out a mortgage and purchased it the traditional way ),
It's quite common for children to help parents buy their council house, especially when the parents are getting on a bit.
ETA if her concern is about getting evicted she needn't worry. She will have a Secure Tenancy and can't be evicted as long as she doesn't breach the conditions of the tenancy.
Mojooo said:
Around my area the tenant has to go on the mortgage so it will either be in her name or in joint name (you may only be able to buy in joint name if you have been living there).
If for any reason the house is sold (usually within 5 years) after sale from the Council to your Mum then the diso must be paid back.
i.e if she bought it tomorrow with a discoutn she couldnt sell it next year and keep the discount.
I am not sure what happens if ti is a joint mortgage and one party dies. i doubt the council want it back - although we have shortages of houses it seems liek councils want to, or are being pressured to sell houses.
No concerns with paying any discount back, no intention of selling for a profit and no intention of being on the deeds.If for any reason the house is sold (usually within 5 years) after sale from the Council to your Mum then the diso
must be paid back.i.e if she bought it tomorrow with a discoutn she couldnt sell it next year and keep the discount.
I am not sure what happens if ti is a joint mortgage and one party dies. i doubt the council want it back - although we have shortages of houses it seems liek councils want to, or are being pressured to sell houses.
I only want to protect my initial outlay that will allow her to purchase the house.
I work for a HA and we have a standard Right to Buy form which asks questions designed to ensure applicaitons are within the rules, which aren't the clearest - we regularly use solicitors as a double check.
It could appear to a cynic that your plan may be to buy the house, sell it, move your mother into a cheaper house and pocket the difference. The Council may ask probing questions about this (given her age) but I don't think there's any thing they can do about it.
There's no harm in making an application as worst case scenario is it gets rejected - only risk is if she is on any form of benefit - if so be doubly confident you're compliant with the rules as any suspicion of foul play could result in a referral to the Council's fraud investigation team.
It could appear to a cynic that your plan may be to buy the house, sell it, move your mother into a cheaper house and pocket the difference. The Council may ask probing questions about this (given her age) but I don't think there's any thing they can do about it.
There's no harm in making an application as worst case scenario is it gets rejected - only risk is if she is on any form of benefit - if so be doubly confident you're compliant with the rules as any suspicion of foul play could result in a referral to the Council's fraud investigation team.
Gassing Station | Finance | Top of Page | What's New | My Stuff