Council right to buy-would you do it?

tawnyowls

Bwoofie wrote:

A big big thanks to everyone who took the time out (and it is precious)to reply.The advice has been read and read again! The solicitor advised us that a condition of trust should be set up just to clarify that the money i provided was in fact a loan which would be paid back in the form of the house in the event of mums death.I admit that she got a bit upset (so did i) because the solicitor said that in years to come certain ppl and their heirs could come out of the woodwork to make a claim on the property (nothing is ever straight forward is it?)Anyway the solicitor said that he wouldnt be doing his job properly if he didnt draw up a condition of trust(free of charge i might add!)to prove where the money came from in the event of her death.

You're lucky to have a responsible and ethical solicitor, and should definitely follow his advice. In addition, it would be sensible to get the house put into your joint names as joint tenants so that the house will automatically go to you when your mum passes away.

clutton_2

there are 2 types of "joint tenants" - one is called "tenants in common" and the other joint tenants - it is crucial that you get the right one, as the "care costs issues" could really make all these wonderful plans come unstuck horribly. do go back to the solicitor and explain that you want the house in joint names - this is not an expensive thing to do. you can even do it yourself via the Land Registry who are very helpful. What a wondeful thing you have done here !!

Bossyboots

Not sure this property can be put into joint names at this stage because of the reduction that has been applied to buy it in the first place. They may well seek repayment of that.

follyfoot

Bwoofie wrote:

A big big thanks to everyone who took the time out (and it is precious)to reply.The advice has been read and read again! The solicitor advised us that a condition of trust should be set up just to clarify that the money i provided was in fact a loan which would be paid back in the form of the house in the event of mums death.I admit that she got a bit upset (so did i) because the solicitor said that in years to come certain ppl and their heirs could come out of the woodwork to make a claim on the property (nothing is ever straight forward is it?)Anyway the solicitor said that he wouldnt be doing his job properly if he didnt draw up a condition of trust(free of charge i might add!)to prove where the money came from in the event of her death.
The thread is right about what is done and we will enjoy it, also, and I dont want to sound mean, but regarding any future partners,mum suffers from arthritis of the spine,has had 2 total knee operations and has trouble getting about (although i call her Bionic supergran) so I would spot a golddigger a mile off!
I feel so guilty about the HB thing,but then again It doesnt matter because she was always going to live there rent free if I bought it anyway.
The house was valued at £97000, Labour capped the discount rates in '05 so that even though she had been a tennant for over 45 yrs the max discount she would get is £24000 ( in our area) plus (and you can check this out) if you sell within 5 yrs you have to pay some or all of the discount back ( on a sliding scale) ....And, if you want to sell within 10 yrs, you have to give the council first refusal on the property.Good old Labour eh lol. So you see the reason I bought the house was not to make a quick pound or two, the house is only a two bedroom semi, but it is furnished in gold encrusted memories that no amount of money can replace.Big Big thanks again and I will keep you updated.X
Live a little, Spend a lot.:T

normally you have to pay back the council part of discount if you sell within 3 years. i have never heard of giving council the first refusal if you sell within 10 years. i am assuming you live in an outer london borough?

belleooo

follyfoot wrote:

normally you have to pay back the council part of discount if you sell within 3 years. i have never heard of giving council the first refusal if you sell within 10 years. i am assuming you live in an outer london borough?

This is a new rule, in our region anyway (Leeds). I bought my house in October 2004 and just missed the 10 year thing. The maxinum discount I got was £24,000 and I couldn't have expected any more due to change in the rules which stated 24,000 was the absoloute max. Labour have made buying your council house less lucrative. Whether this is a good thing, or bad, remains to be seen.

Bwoofie

Thanks for the replies (appreciated as always),As promised, here is an update.I went to the solicitor (to pay him his fee!) and he put it to me that now he has set up a condition of trust to prove it was my money (lent to mum)that helped to buy her house, I should take steps to protect the house in the event of mum passing away.He roughly gave this scenario: Mum leaves the house to me in her will, but what would happen then, If in years to come when i passed away,and my wife re-married? he know that my ultimate goal is to leave the house to my kids (because they too love the house,area, woods nearby etc)So, this is the advice he gave:
1, Mum to leave the house soley to me in her will.
2,I inturn, make a will (now) and leave the house to my kids (not my wife) in my will, to prevent any new partner,husband getting their hands on the house.
My wife is happy with this as she (as I do, want to leave our kids financially secure)
It is a bit upsetting when something you think should be straightforward is littered with what ifs and shoulds, but i suppose a reality check now, might save heartbreak later.
What do you guys think?
Many thanks as always :A

Bossyboots

Firstly, just because your mum makes a will now, does not mean she won't change it. This is simply not a guaranteed way of ensuring the house comes to you. You might not envisage a scenario now where she would change her will in someone else's favour but you would be unwise to rely on that.

Secondly, regardless of what your will says, if your wife needs the house or the money from the sale of the house she can make a claim against it after you die. She will have rights as your spouse which will override your will if she is not left financially sound. If you were to split up in the meantime, the value of the house will come into play in a divorce settlement.

Your solicitor has presented it to you in too simplistic a way which carries no guarantees at all. You cannot avoid your wife's rights as a dependent when you die, neither can you force your mum to write and never change her will.

Bwoofie

I take it you dont think it was a good idea bossyboots?, what would you do?

Bossyboots

Bwoofie wrote:

I take it you dont think it was a good idea bossyboots?, what would you do?

I think it was a brilliant idea and a lovely thing to do. I just don't think you have the loose ends tied up tightly enough and are relying on something that doesn't give you full protection by just getting your mum to make a will.

Bwoofie

Yes I understand what you think, but how would you 'tie' the loose ends up? cheers.