Buying a council house, advice needed

Owain_Moneysaver

If someone moved in with Grandad as a joint tenant "to help look after him" then they might inherit the tenancy when he dies. They might not inherit a right-to-buy, however. And it would affect Grandad's entitlement to benefits. There would still be a risk of losing the house if Grandad went into a home and the house became under-occupied, but the other tenant would have to be rehoused by the council, and the council would continue to be responsible for maintenance.

glen_almond

I think the old guy would be liable for income tax on any cash 'gift'!

terryw

glen_almond wrote: »

I think the old guy would be liable for income tax on any cash 'gift'!

Nonsense.......

Paul_the_Painter

Fairly strong views on a lot of things!

But in this case it could esily be a huge mistake - whatever my views.

I imagine the "family" thinking on this was something like:-

The house is worth about about £100k

We can buy it for £30-40k - after the discount

We can get a mortgage on it for that easily

That should be under £100/month each

Grandad can stay in his house forever, then one of us can take over the mortgage at a later date and move in.

What perhaps they weren't doing was all the research - actually the conversation should be.

the house is worth £100k

We can buy it for £75k

We'll each have to remortgage our homes to release £25k each

Ouch thats going to cost about £200 a month each - plus fees to remortgage!

We're going to have to put about £100 month between us into the house for repairs/insurance etc.

If grandad goes into a home, the council will place a charge on the house, and we'll either have to find the money ourselves, or they will force a sale when he dies (The council WILL NOT pay fees for homes if he owns his own house)

Tell you what guys - let's just shelve that idea yeah?

Of course it is, at the end of the day, down to the family. If he was 60 and paying his own rent, it may well be a different story.

SUESMITH_2

my dad died last year and he owned his own home. up until about 6 months before he died he was still driving, minding the great grandchildren, going shopping etc. then he got sick and had to go into hospital. social services did their best to keep him in his home but we had to face up to the fact that he couldnt manage alone so we had to find him a home to go into. this was one of the most sressful things ever. in the end my sister found him a lovely council run home but at a cost of 750 pounds a week to be paid out of his savings but when they had gone the house would be sold to pay for his care, luckily he died before that happened.

then the real fun began with a member of our close family arguing about money and his house.

just my situation - your grandad may well live to 100, and he may never need care and your family will prob never fall out over the house and money - all things we said before dad got ill.

good luck with whatever you decide

bitsandpieces

If family-members will be paying the mortgage, you should also think about what will happen if people end up skint (e.g. lose their jobs) or decide not to pay (e.g. fallout with your Grandad). If the mortgage doesn't get paid the bank will repossess the place. Also, will the family be able to afford it if the boiler needs replacing and the roof starts leaking...

It's important to be aware of the risks - this could be a serious financial strain on the family and could even end up with your Grandad losing his home. How compelling are the sentimental reasons for buying?