Shared ownership

CloudCuckooLand

If you go for shared ownership, there will still be rent due on the unpurchased portion, plus probably a HA yearly maintenance charge. On your reduced benefit payments could you afford that? And maintenance/upkeep of the property not covered by the charge etc?

If you bought somewhere outright, again, the maintenance and upkeep would become all your responsibility. If you borrowed money to pay for such costs, it is possible for an unsecured loan to be turned into secured if you defaulted. Risking the house your mother bought for you.

You have a council flat that meets your needs, that presumably cannot be taken away. Bank the £50k and enjoy living off it. If your benefits are affected, so what?

Ames

The problem with banking the money and living off it is that I have bipolar and there's a very high risk I'll just blow the lot straight away, leaving me with no cash and no benefits.

I'd have to be able to put aside some of the money from the inheritance to pay for maintenance and repairs, which is why I'd only have 35-40k to spend on a property.

Believe me, I wish I wasn't going to get anything, it's just a huge complication in my life which given my failing health is the last thing I need.

BitterAndTwisted

In that case perhaps the executors of the estate could arrange for the money to be put into a trust so that you can't have access to the lot at any one time.

Giving up a secure tenancy for life when the risks are so great need very, very careful consideration. I expect there are legal devices which might not have to mean a complete loss of benefits until the the bulk of the inheritance is spent. I think you need to seek specialist advice on this one.

Ames

Thanks B&T, I think I'll speak to Shelter, they should have enough knowledge of the all the issues - housing, benefits etc.

I will be the executor of the estate, unfortunately! Along with my sister, but as eldest and the one who lives nearest I'll have to sort everything out.

Lynsey

Can you not put the cash in your sisters name (over amount you are allowed)??
You are safe as you are, I personally wouldn't go looking to buy just to avoid paying DWP - but you need to use avoidance methods. Everyone/most people use them, so why shouldn't you?? Avoidance is either available to all or none, not just some.

Good luck.

Lynsey

Errata

Ames - Leeds is heaving with shared ownership flats for sale. Have a look at Rightmove - from £20k for a quarter share upwards.

BitterAndTwisted

How is someone on means-tested benefits going to be able to afford service-charges and maintenance costs in the future?

geoffky

keep your flat....you have a thing that most people would give thier right arm for...a secured tenantcy...forget buying,,,

Ames

Thanks everyone (well, most). If I put it in my sister's name that'd be fraud and I'm not prepared to do that. If I keep the cash and live off it for, say four years, then I think it will seriously affect my mental health. If I don't go manic and blow the lot at any point during that time, then I'd be getting really paranoid. Whenever I bought a loaf of Hovis instead of 50p own brand I'd be worrying I was being too extravagent, never mind bigger purchases.

The issue with keeping the flat I'm in is that it's really too small, when I'm bad an need someone to stay with me for a few days then they end up sleeping on the hallway floor.

But even with shared ownership I'd struggle to find anywhere that's a two bed ground floor flat. I have been looking on Rightmove regularly to see if there is a chance of somewhere being available. Plus I don't want to be too far away from my GP, I've finally found one who understands my various illnesses and I trust, and although I can keep them if I move out of their area, they wont do home visits. So that's an extra complication - the shared ownerships in Gipton or Holbeck are in the wrong area. I'd rather buy a small house in a worse area and pay for a stairlift.

As for maintenance, then as I've said, I'd need to buy somewhere that leaves me with a big enough lump sum but still below 8k to pay for repairs as and when they're needed, and service charges, that's why I'd rather find a self contained property. If I was in shared ownership then some of them would be covered by housing benefit, depending on what they covered.

chris_m

If you're concerned about the risk of blowing the money, and I think it's very sensible of you to consider that possibility, maybe it's possible to get it put into some form of trust which only pays you so much a month and allows you no access to the remainder? Maybe have your sister as a second trustee so, if your circumstances changed, it would be possible to access the balance but not just on your say-so alone?