Bought Aunties House

gauly

"i would have actually had a mortgage on the place in my name if i remember correctly."

You can't have a mortgage in your name on a property you don't own.

needahome_2

gauly wrote: »

" in case anything happened to her or she became ill and had to go into care they couldnt use the house as income"

I'm pretty sure this isn't going to work. The house belongs to your aunt, not to you (it has to under the council's RTB scheme). That means that she can't just sign a piece of paper saying ' .. er, actually I don't want to pay care home fees, I'm going to give my money to my nephew/niece instead.' Everyone would do that otherwise!

On other threads it has been pointed out to people that one risk of buying their relative's council house for them is that it could be sold and used to pay care home fees and they won't see a penny. Obviously most people here aren't lawyers, but it does seem quite likely. Are you sure you got good legal advice when you bought the house?

i think that is incorrect. i even seen an article in one of the housing sections of a newspaper where people ask for property legal advice, regarding a similiar situation.

obviously no you cant just sign a paper saying you are signing the house over to get out of paying care home fees, as you quite rightly point out, everyone would do it.

however the situation is different, if at the time of purchase it is stated that it is someone elses money paying for the property, even a RTB property which i think was the property in concern on the article i read.

you may ask why would the council allow such a thing ? well for a start they save on paying housing benefit for the rest of that persons life, which is the crux of the matter why the OP cant pull off his scheme because the council sold the property on the understanding that they would never pay HB again for the aunt in question.

trackerboy_69

gauly wrote: »

" in case anything happened to her or she became ill and had to go into care they couldnt use the house as income"

I'm pretty sure this isn't going to work. The house belongs to your aunt, not to you (it has to under the council's RTB scheme). That means that she can't just sign a piece of paper saying ' .. er, actually I don't want to pay care home fees, I'm going to give my money to my nephew/niece instead.' Everyone would do that otherwise!

On other threads it has been pointed out to people that one risk of buying their relative's council house for them is that it could be sold and used to pay care home fees and they won't see a penny. Obviously most people here aren't lawyers, but it does seem quite likely. Are you sure you got good legal advice when you bought the house?

I was assured by my lawyer that a deed of trust is fully legal and is proof that i provided the funds for the house and it could not be used to pay for care home fees if my auntie ever needed to go into a home also she could never sell it without me saying so or i could never put her out or sell it from under her.

needahome_2

trackerboy_69 wrote: »

I was assured by my lawyer that a deed of trust is fully legal and is proof that i provided the funds for the house and it could not be used to pay for care home fees if my auntie ever needed to go into a home also she could never sell it without me saying so or i could never put her out or sell it from under her.

i think that is entirly correct, the situation i was reading was a RTB home and concerned the matter of care home fees.

trackerboy_69

needahome wrote: »

i dont think there is anything wrong with the arrangement, i looked into doing it myself a few years ago with my mum and was told that it was ok, i would have actually had a mortgage on the place in my name if i remember correctly.

OP mentions he bought the place a few years ago, would by anychance the period in which you cant sell without having to pay some of the discount now be over ? and now as hence you (well your aunt) owns the property outright you now think you are entitled to an income from it ?

as i said eniquired about doing this myself a few years ago, and im sure its perfectly legit, however there is no free lunch as they say. in return from benefitting from the discount when your aunt pops her clogs, you have to accept your money is tied up without any income from it till that day arrives.

you cant have your cake and eat it.

I think it is 3 years for dicount period before you can sell a property. Thanks for the reply i now know there are other people out there thinking the same as me

needahome_2

trackerboy_69 wrote: »

I think it is 3 years for dicount period before you can sell a property. Thanks for the reply i now know there are other people out there thinking the same as me

depends when you bought it, it was changed to 5 years a few years back

silvercar

Sounds like the deed of trust operates like a mortgage charge on a property.

The property can't be sold without the trust holders agreement and any money from an agreed sale would first go to repay the deed.

Normally with RTB, the council also maintains a charge over the property until the end of the repayable discount period.

neverdespairgirl

trackerboy_69 wrote: »

Thanks for the reply, i can see your point about her giving it away, although i actually own the house. I just wanted to know if their was away to go about it as she was on disability and housing benefit before i actually bought the house.

What does the trust deed actually say? When was it drawn up? THe house might be liable to be sold for her nursing home fees, if she ever needs any.

neverdespairgirl

trackerboy_69 wrote: »

I was assured by my lawyer that a deed of trust is fully legal and is proof that i provided the funds for the house and it could not be used to pay for care home fees if my auntie ever needed to go into a home also she could never sell it without me saying so or i could never put her out or sell it from under her.

There are a couple of issues here.

Firstly, if she has a right to remain in the property regardless, then any tenancy is otiose - she has a right to remain there anyway, and it would be a contrived tenancy for LHA purposes.

Secondly, when was the agreement drawn up? How many years ago? The law on this has (I think) been tightened, as to what is property belonging to a person needing care, but trusts such as this are complicated.

miamoo

When you purchase a council house under the right to buy scheme, The person buying the house HAS to of lived in that house for a certain number of years. So how did you buy a council house, using the RTB scheme if you never lived there?