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Helping Dad buy council flat, will it affect me from getting 'first home' benefits?

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Pk_King_X11
Pk_King_X11 Posts: 3 Newbie
in House buying, renting & selling
I want to help my dad buy a council home, neither I or he owns any home, were only renting. We will be applying via 'Right to Buy' which should give us 50% off. I will be living with him to help quickly clear the mortgage. The question is, should I appear as a joint tenant in the application form? Am I required? What are the benefits of being a joint tenant? Will it prevent me from getting government's benefits later on when I'm buying my own first home (probably with the help of my dad)?

Thanks.
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  • G_M
    G_M Posts: 51,977 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    edited 9 July 2017 at 1:13PM
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    Who is buying this property?
    Your dad or you and your dad?

    If you are a joint owner, you will never again be a FTB from the government persepctive.

    If you jointly own as 'Joint Tenant', then if your dad dies, you'll own the entire property (whatever dad's will says)

    If you own jointly as 'Tenants in Common', then if dad dies, his half will be inherited according to his will.
  • dionysia
    dionysia Posts: 81 Forumite
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    What does applying for a tenancy have to do with it? Does your dad not have a council flat currently?
    June 2017: owe £16,818.
    June 2018: owe £13,263.
  • AdrianC
    AdrianC Posts: 42,189 Forumite
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    Apart from a possible increase to your eventual inheritance subsidised by council tax payers and those denied a future council home, is there any actual benefit for your father in owning his flat, with the increased costs and decreased security of tenure that carries?
  • Tiners
    Tiners Posts: 232 Forumite
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    Still trying to work how it works that the OP is helping their dad to buy now... and then at some point in the future their dad will be helping the OP to buy?
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
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    Pk_King_X11 wrote: »
    I want to help my dad buy a council home, neither I or he owns any home, were only renting. We will be applying via 'Right to Buy' which should give us 50% off. I will be living with him to help quickly clear the mortgage. The question is, should I appear as a joint tenant in the application form? Am I required? What are the benefits of being a joint tenant? Will it prevent me from getting government's benefits later on when I'm buying my own first home (probably with the help of my dad)?

    Thanks.

    So you are each helping buy the other a home?????
    Why dont you just keep it simple and each buy your own ???
  • IAmWales
    IAmWales Posts: 2,024 Forumite
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    AnotherJoe wrote: »
    So you are each helping buy the other a home?????
    Why dont you just keep it simple and each buy your own ???

    I expect they're wanting their 50% freebie to finance the second ;)
  • gettingtheresometime
    gettingtheresometime Posts: 6,911 Forumite
    First Anniversary Name Dropper First Post I've been Money Tipped!
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    Talk about wanting your cake & eating it
  • Alter_ego
    Alter_ego Posts: 3,842 Forumite
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    AdrianC wrote: »
    is there any actual benefit for your father in owning his flat, with the increased costs and decreased security of tenure that carries?


    Could you explain how owning decreases security of tenure please?
    I am not a cat (But my friend is)
  • AdrianC
    AdrianC Posts: 42,189 Forumite
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    Alter_ego wrote: »
    Could you explain how owning decreases security of tenure please?
    Simply because it does... This is a well-established fact that those looking at RtB discount always forget.

    Right now, the father is very unlikely to ever lose their secure tenancy, unless through their own actions.

    If the OP and their father cannot keep up with the mortgage repayments, the flat will be repossessed. If the OP suffers financial problems of their own, the flat is at risk. The father is also going to be in receipt of much larger maintenance costs, with a share of block costs as well as costs internal to the flat - and refusal to pay them can result in the lease being forfeited. If the father is in receipt of benefits, they may be reduced.
  • elsien
    elsien Posts: 32,734 Forumite
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    If you marry then divorce, your half of the flat may be included as a marital asset so you would need to raise the money to buy the ex out.

    If you go bankrupt your half of the flat would be at risk.
    You/your dad also have to factor in any maintenance costs which he currently doesn't have to pay.

    Is most of the benefit for the arrangement for you or for him? If it's for you, please consider the impact of all eventualities on him before you go ahead.
    That's if you can go ahead of course - is your name currently on the tenancy?
    All shall be well, and all shall be well, and all manner of things shall be well.

    Pedant alert - it's could have, not could of.
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