Buying council houses

Ianardo_2

Hello

I'd like some advice please.

I have quite a bit of equity in my current property and would like to investigate the possiblity of using this to buy my mothers council house. As I understand it she would qualify for a discount on the current market value having lived there for over 10 years. The question is can I buy it for her and would it have to be in her name.

Thanks in advance

nollag2006

Can't answer your question - but you sound like a great child. What a lovely thing to do for your Mum !

CLAPTON

you can give her amount of money you like
but she would have to buy the property and get any mortgage (if required)

tanith

The others are correct would your Mum have the income to qualify for a mortgage if it were needed? and of course your Mum would then be responsible for all repairs and maintainence... I'm sure there will be other posters along to give their opinion soon enough

Ianardo_2

Thanks guys.

To be honest I see it as an investment. It wouldn't really effect my mum much as she pays a nominal rent anyway.

Clapton-Would my mortgage provider allow me to borrow the money on the value of my house and give it to my mother?

Ianardo_2

Tanith

Mum's just retired and has very little, if any savings. So she wouldn't, I guess, be able to get a mortgage herself.

Basically she's/I'm looking to take advantage of any discount available.

tanith

but as I am sure others will explain to you its not quite that simple... if your Mum should need care in her later years the house may be taken into account when assessing her contribution to her care.. there are an awful lot of things to take into account.. its not as straight forward as you seem to think....

Sammy85_2

If you have the available equity in your house to draw down the funds then you should be able to get it, but be aware that most banks wouldnt be happy to give you more than around 75% of your homes value, gone are the days of borrowing upto 90% (and more!)

You would have to give this money to your mother though (which may cause tax issues, i believe you can only gift so much per year tax free). She would have to be the one to buy the house from the council as she is the tenant.

PasturesNew

She'll be responsible for the maintenance/upgrade of the house. Over the next 20-30 years that might mean paying for a new boiler, new kitchen, new bathroom, new wiring, new roof .... and then if she goes into a home it might need to be sold to pay for her care.

I don't really see the point. She's getting a worry free house right now, I'd leave it at that.

Ianardo_2

Thanks Tanith

I didn't think it would be straight forward, thats the reason for the thread to investigate any pitfalls etc

HouseHunter2010

Ianardo wrote: »

Thanks Tanith

I didn't think it would be straight forward, thats the reason for the thread to investigate any pitfalls etc

You also need to think about the morals of "taking advantage" of your mums right to a discount and buying her council house as an 'investment', therefore denying those in need of a council house.