Buying my mums council flat

ianian99

No offence mate but people like you make me sick!!! You want to fiddle both the right to buy scheme and the housing benefit, no wonder there are so many homeless people in the uk with people like you around.
The right to buy scheme was SUPPOSSED to be to save the TENNANT money and for them to LIVE there not for someone like you to come along a make a huge priofit at the expense of others. When you buy that house that takes yet another council house, that some family could have in the future, out of the council stock and also helps towards the house price increase. But i don't suppose you care about that really do you?

black-saturn

angeluk69 wrote:

As far as I know you are not allowed to rent a property to a family member and then claim benefits, I used to rent a house owned by my MIL and was told when we wanted to move into a new house that this was actually being stopped to protect the older generation from being made homeless.

You can. My parents rent a house to my sister and she is in receipt of full benefit.

angeluk69_2

black-saturn wrote:

You can. My parents rent a house to my sister and she is in receipt of full benefit.

My MIL was going to buy us a house to rent from her as we are one of the unfortuate ones that cannot afford a house, and we were told by all parties involved that we are not allowed to do that because it is fraud.
And the house could never be transfered to our names later on as this would be fraudulent also.

I am only saying what I know

black-saturn

Maybe its different for different areas but my mum and dad are definately renting to my sister who is claiming housing benefit. It's only not possible if you are living with them i.e. renting a room in their house.

black-saturn

I found this page. If you look half way down it says 'Where a landlord rents their property to a close relative'.

http://www.housingoptions.org.uk/gi_factsheets/gi_fs_17.html

calleyw

Steviec321 wrote:

Thanks, i could buy it of her after 5 years for a pound possibly and charge her rent.

But could you?

Not just to the fact that the rules have changed and if she wants to sell or I would think even transfer the council may well have first dibbs on it. So bang goes any money because she may not want to give you any money back and you might have hard time with the tax man over why she give you all this money in a lump sum.

Not sure you could buy it for a £1 due to tax implications. Think it has to be sold at market value or just below.

I can't work out what you are saying you. You talk about paying off the mortgage when you sell. So you don't have the full amount of the money. So what would mean she will buy the property and you will pay the mortgage until the time limit is up and then you buy if off her and then get HB to pay her rent so that pays off your mortgage. Have I got that right.

If it has to be sold at market value for tax reason. Why is she going to get HB as they will say she sold the house and has all this money. How do you think it is going to look when it all comes out about you paying the mortgage and her handing all the money back over to you.

Not all banks will lend on RTB and has your partners mother got an income when it comes to taking out the mortgage.

You are aware that with RTB that the max discount is now only £38k depending on where you live in the country.

I think you need to tread very carefully on this and get some proper advice and that means paying for it.

Yours


Calley

QBD

ianian99 wrote:

No offence mate but people like you make me sick!!! You want to fiddle both the right to buy scheme and the housing benefit, no wonder there are so many homeless people in the uk with people like you around.
The right to buy scheme was SUPPOSSED to be to save the TENNANT money and for them to LIVE there not for someone like you to come along a make a huge priofit at the expense of others. When you buy that house that takes yet another council house, that some family could have in the future, out of the council stock and also helps towards the house price increase. But i don't suppose you care about that really do you?

I think thats a bit harsh, after all he is not doing anything illegal by giving his mother the money to buy her the house. I think any animosity should be at the Thatcher Govt who introduced the RTB scheme, effectivly making swathes of the population capitalists overnight. The Govts long term goal is to completely privatise all housing ... say hello to the new generation of trailer parks.

Regards

QBD

ianian99

I dont think its harsh at all, he wants to buy a house that he's not entitled to and he wants the tax payer to pay for it through housing benefit. The housing benefit will also be more than the mortgage payments so he's laughing all the way to the bank. Why should i pay for his step up the property ladder?

BobProperty

ianian99 wrote:

I dont think its harsh at all, he wants to buy a house that he's not entitled to and he wants the tax payer to pay for it through housing benefit. The housing benefit will also be more than the mortgage payments so he's laughing all the way to the bank. Why should i pay for his step up the property ladder?

Various problems with this scheme have already been pointed out:
Actually getting a mortgage that fits with this arrangement.
The possibility of clawback or repayment of part of the value (or discount given) on the disposal of the property.
The tax implications, especially the details of the contract to get the money back that was lent to the purchaser.
The risk of changes in the tenant's health, personal circumstances or repairs to the property may force unwanted changes in the arrangement.
And finally to ianian99 quoted above, the IS benefit covers mortgage interest at a standard rate, so the benefit may well be short of the actual mortgage payment, and kicks in after 39 or 40 weeks.

ianian99

BobProperty wrote:

Various problems with this scheme have already been pointed out:
Actually getting a mortgage that fits with this arrangement.
The possibility of clawback or repayment of part of the value (or discount given) on the disposal of the property.
The tax implications, especially the details of the contract to get the money back that was lent to the purchaser.
The risk of changes in the tenant's health, personal circumstances or repairs to the property may force unwanted changes in the arrangement.
And finally to ianian99 quoted above, the IS benefit covers mortgage interest at a standard rate, so the benefit may well be short of the actual mortgage payment, and kicks in after 39 or 40 weeks.

I know that mate but he is planning for his partners mother to claim housing benefit and for it to be paid to him as he will be her new landlord