Bought Aunties House

silvercar

miamoo wrote: »

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?

By the sound of it, you lend someone else the money to do it on your behalf.

ceebeeby

I can see where you're coming from Trackerboy, and did something very similar quite a few years ago for a close relative.

We went into it for a very different reason though, and that was basically the relative was getting less and less mobile, and needed a better bathroom (walk-in shower instead of step-over bath) and kitchen (one with low cupboards). We'd tried to get the council to do this for her, but were told it could be five years for them to do it, unless we paid for the work ourselves (she didn't have any money, so to speak). The works were going to cost in the region of £10 - £15k initially, and ended up nearer the £15k mark.

Eventually we 'lent' the money to the relative for her to buy the property - however, when it was being put through, we had a trust document signed up which basically covered the amount we loaned her to buy the house, plus the estimated refurbishment costs, plus interest (I don't remember at what rate, but it seemed fair), additionally, the relative also drew up a will making clear that in the event of her passing away, the house was fully mine, but everything else was to be shared amongst the rest of the family. This was so that we were guaranteed not to lose the money we invested - which after all was just to help her.

Anyway - the story goes on, and the relative became less and less mobile, making it impossible for her to live in the house (because of where it was located at the top of a hill). She desperately did not want to go into a care home. We offered her a room in our home, but she didn't want that either. After lengthy discussions with the council, doctors etc. she was offered a council bungalow in a much more accessible area. We asked the council (and her) what they wanted done with the other house, because under the circumstances it didn't seem right to profit from it, whilst she was being looked after once more by HB.

Council said, absolutely nothing to do with them as it had passed the time limit (5 or 8 years, I forget now), they wouldn't be looking for anything from it. It put us into a really difficult position, as it felt like we were profitting somehow immorally (no-one likes to make money out of an elderly relative), even if it wasn't illegally.

I should also say, we're not talking vast sums of money here (in the context of housing anyway), but I think the principles the same.

trackerboy_69

miamoo wrote: »

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?

my auntie has lived there for years i provided the funds

trackerboy_69

ceebeeby wrote: »

I can see where you're coming from Trackerboy, and did something very similar quite a few years ago for a close relative.

We went into it for a very different reason though, and that was basically the relative was getting less and less mobile, and needed a better bathroom (walk-in shower instead of step-over bath) and kitchen (one with low cupboards). We'd tried to get the council to do this for her, but were told it could be five years for them to do it, unless we paid for the work ourselves (she didn't have any money, so to speak). The works were going to cost in the region of £10 - £15k initially, and ended up nearer the £15k mark.

Eventually we 'lent' the money to the relative for her to buy the property - however, when it was being put through, we had a trust document signed up which basically covered the amount we loaned her to buy the house, plus the estimated refurbishment costs, plus interest (I don't remember at what rate, but it seemed fair), additionally, the relative also drew up a will making clear that in the event of her passing away, the house was fully mine, but everything else was to be shared amongst the rest of the family. This was so that we were guaranteed not to lose the money we invested - which after all was just to help her.

Anyway - the story goes on, and the relative became less and less mobile, making it impossible for her to live in the house (because of where it was located at the top of a hill). She desperately did not want to go into a care home. We offered her a room in our home, but she didn't want that either. After lengthy discussions with the council, doctors etc. she was offered a council bungalow in a much more accessible area. We asked the council (and her) what they wanted done with the other house, because under the circumstances it didn't seem right to profit from it, whilst she was being looked after once more by HB.

Council said, absolutely nothing to do with them as it had passed the time limit (5 or 8 years, I forget now), they wouldn't be looking for anything from it. It put us into a really difficult position, as it felt like we were profitting somehow immorally (no-one likes to make money out of an elderly relative), even if it wasn't illegally.

I should also say, we're not talking vast sums of money here (in the context of housing anyway), but I think the principles the same.

Thanks for the reply i will check everything out before i decide what to do.

trackerboy_69

neverdespairgirl wrote: »

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.

The trust was drawn up about 4 years ago, i asked my solicitor what would happen if god forbid my auntie ever had to go into care and he assured me the house could not be used to pay for fees as i had provided the funds for the property.

poppysarah

trackerboy_69 wrote: »

The trust was drawn up about 4 years ago, i asked my solicitor what would happen if god forbid my auntie ever had to go into care and he assured me the house could not be used to pay for fees as i had provided the funds for the property.

Did the solicitor also point out to your aunty that she'd be forced to apply for HB to live in her own home?

silvercar

poppysarah wrote: »

Did the solicitor also point out to your aunty that she'd be forced to apply for HB to live in her own home?

I would guess that "forced" is too strong a word.

I would guess that trackerboy only wants rent if the taxpayer can fund it.

If Auntie isn't eligible for housing benefit, I would guess that trackerboy won't evict Auntie.

Only guesswork, but people don't normally use their relatives to make a profit and then make them homeless.

Rabiddog_2

Hasn't this whole question been asked before? I get an awful sense of deja-vu reading this...It might even have been tracker boy asking this last year.. everything but the dates are the same?

trackerboy_69

silvercar wrote: »

I would guess that "forced" is too strong a word.

I would guess that trackerboy only wants rent if the taxpayer can fund it.

If Auntie isn't eligible for housing benefit, I would guess that trackerboy won't evict Auntie.

Only guesswork, but people don't normally use their relatives to make a profit and then make them homeless.

Cheers for that, some people seem to think i want to chuck my auntie out, but like you said if i can get the rent funded good, if not then end of story.

trackerboy_69

Rabiddog wrote: »

Hasn't this whole question been asked before? I get an awful sense of deja-vu reading this...It might even have been tracker boy asking this last year.. everything but the dates are the same?

Only just joined this site so wasnt me, what was the outcome of that question? Do you know if the thread is still on here, if so i will take a look.