Removing Names of Deeds

louie31

How does it work to remove deeds from house?

Husband and parents joint names all on deeds, but husband solely pays mortgage, rates etc.

Parents want to get names removed from deeds, hoping to get rent paid for them being in house.

There is a secured loan on house so how would this work?

Any advice or help would be appreciated

THanks

G_M

Whose names are on the mortage? I'd guess husband and parents.

You can't remove names from deeds without amending the mortgage in the same way. You'll need lender's agrteement.

louie31

Yes husband and parents.

They have applied to mortgage lender to get parents names of mortgage so they can be removed of deeds.

Not sure what way a secured loan works thou?

Jowo_2

If the parents live in the same property, they will not be eligible for housing benefit which is never paid when the landlord lives in the same place as their close relatives.

If they get rid of their capital in order to make themselves eligible for housing benefit (local housing allowance) elsewhere at a separate property, then google 'deprivation of capital' and 'notional capital'. This is where means tested benefits get rejected when the relevant body believes that someone has given away their capital in order to take advantage of the benefits system.

louie31

i should have said we dont live in the property that mortage is on.

We rent privately at another house.

The parents are now in there 80's, still fit and healthy but for lots of reasons need to get deeds sorted for our future if nothing else.

tyllwyd

It all sounds pretty dubious, jointly owning a house then trying to give their share away and claiming rent on the same property.

When you say there is a loan secured on the property, whose name is it in? If it is in your parents names, I'd have guessed that the loan provider would want it paid back, because your parents would no longer own the property it is secured on.

Jowo_2

Okay, so your in laws want to be taken off the Deeds on the current property they reside in so they can then pay LHA to you and your husband?

Google 'contrived tenancy'. The local council tend to scrutinise LHA claims more closely that are submitted when the tenants and landlords are related to ensure they've not been set up to take advantage of the housing benefit system. On the Shelter website it says it can be considered a contrived tenancy when the tenants pay rent just when they qualify for benefits but not in other circumstances.

Cannon_Fodder

google Contrived Tenancy, too. (edit, crossed with Jowo)

They cannot just give away their house and then pretend to be tenants.

Thought it was being sold...? If they take some cash and bank it, they won't need help with the rent. https://forums.moneysavingexpert.com/discussion/2577633
plus https://forums.moneysavingexpert.com/discussion/1792605

Don't forget your husband's CGT liability, if you sell.

There is more to this than individual threads indicate. If you do not wish to explain the whole story here, so people can answer properly, go and consult a solicitor on the whole story.

The parents desperately need to see a solicitor, anyway, to ensure they protect their rights to continued residence. A Lender is unlikely to change the names, if they see the parents as having permanent residence.

Jowo_2

To me, this is a very complex situation and you need expert legal, tax and benefits advice.

Perhaps your in laws could speak to someone from Age Concern and Shelter or similar to gain an understanding of how depreviation of capital/notional capital and contrived tenancy will affect their access to means tested benefits and later social/care home costs.

The scenario you outline seem to break a number of regulations set up to stop people abusing the benefits system. I'm not saying this is the case, nor is it a deliberate stance, because there probably was no awareness of this when the arrangement was set up and is inadvertent. Nonetheless, this whole thing seems very tricky.