Home Purchase for disabled daughter

Keentosave_3

I'd be interested to hear peoples opinions on this situation!

I have a 20 year old daughter with an autistic disorder.
She gets Incapacity Benefit and DLA and is unlikely to be able to work.
She will be attending college for the next 2-3 years but could live independently with family support.
We have no mortgage and income 25K and could muster a small lump sum.
Can we but a flat/house in our name and let her live in it rent free?
Are we likely to have trouble getting a mortgage for this arrangement.
Can we put the property in her name though we are paying for it?

Any thought on the pros and cons?

Keentosave

munchings-n-crunchings

Hello Keentosave,

My mother did a similar arrangement for me.
She purchased a house, for me to rent.
I think you would need to have a 'buy to let' mortgage.

In my situation, there was an 'assured short term tennancy agreement' drawn up by a solicitor costing about £100.
I now receive housing benefit towards the rent.

I don't know the implications of putting the property in your daughter's name now, If there is no hurry, the property could be put into some sort of trust for her should anything happen.
It's a very generous thing you are doing, and it will help your daughter become an independent adult, whilst still having your support to hand.
I'm sure you will get lots of other thought's and opinions.

Regards
Munchie

beautifulgorgeous_2

I would save for at least another 12 months to get the biggest deposit you can as I think prices have a way to fall yet. your daughter is still young to move out so I do not think there is any urgency and the bigger your deposit the lower your mortgage rate

Keentosave_3

I assumed it was not 'right' / 'possible'. to buy a property and then charge her rent to in effect 'cover the mortgage by using her benefit payments.

Sounds too simple!

maliah

Hi Keentosave,

Yes it sounds simple and it is very possible as long as when u buy the house/flat u draw up a tenancy agreement for ur daughter she will receive housing benefit to cover or pay towards the mortgage.

My friend's mother did this for her daughter and she receives the hosing benefit straight to her as she is classed as her daughters landlord.

good luck in ur decision, i think it is fantastic that u want ur daughter to be as independent as possible. x

mouseymousey99

I may be wrong but from what I have read you may get into some cloudy waters - I'm sure you would anyway but I'd run this one by a solicitor before making any plans. From what I've read you can't 'rent' or pay LHA to a relative.

munchings-n-crunchings

My council don't have a problem with it.
There is a legal tennancy agreement in place.
My parent lives some distance away.
If she had not purchased the house, I would be on the council waiting list...actually I think I still am, or in some other form of privately rented property.
If an adult needs a rented property, and everything is done legally, there should be no difference who the landlord is.
Make some enquiries with your council benefits dept.
Whatever problem I have had, they have always been willing to help.
They would be a really good starting point.

It does sound like it is a commitment you want to make regardless of the income from rent, and I still think it would give your daughter a secure future.

Regards
Munchie.

jenhug

my father in law rents a flat off his son, he had to go through a letting agent, and the council pay the rent.

lolababy

Hi yes you can do this but id advise you to get a supporting letter from a social worker. The reason I say this is it covers yourselves in the event of the housing benefit saying that its for gain. Ie your buying the house soley for profit.
Iv dealt with families who have done this and sometimes it could get messy with housing benefit. Thats why a social workers letter was invaluable.

Keentosave_3

Interesting.
I now wonder if we should look at :
a. Buy a house and have her rent it.
b. Do we need a buy to let mortgage?
or.
c. as we are mortgage free should we re-mortgage our home in order to buy for her outright and then have her rent?

Looks like there is a lot to look into.

lolababy

I know that some families if not most had a mortgage on the second house. Looking at it Id say get some proper legal advice at least then you will be fully informed before making a decision.
The other option would be to look at some supportive housing. Many housing associations have schemes for people in need of specialist support. This could consist of help with putting up shelving to having a outreach support service.
If you have a carers center near you pay them a visit they should have up to date imformation on housing ,benefits ect.