Owning 2 houses, one SO?

candycow

Hopefully this won't be an issue for a long time. My husband and I live in a shared ownership house, so aren't allowed to own another house. My parents had been doing their will and on it will be passing the house to me and my sister. Ideally, we would like to rent the house out, or invest in a slightly smaller rental freeing up some money for imporovements to our current houses. Someone suggested that if we were to set up a business, then that could be the owner of the house, and we could just take an income from that. Is this possible does anyone know? I'm not looking to tax dodge or anything like that.

kingstreet

candycow wrote: »

Hopefully this won't be an issue for a long time. My husband and I live in a shared ownership house, so aren't allowed to own another house. My parents had been doing their will and on it will be passing the house to me and my sister. Ideally, we would like to rent the house out, or invest in a slightly smaller rental freeing up some money for imporovements to our current houses. Someone suggested that if we were to set up a business, then that could be the owner of the house, and we could just take an income from that. Is this possible does anyone know? I'm not looking to tax dodge or anything like that.

Do you have that in writing somewhere from the HA?

pivotalgubbins

kingstreet wrote: »

Do you have that in writing somewhere from the HA?

This.

Doesn't sound right to me - surely they can't own another property to qualify for a shared ownership property but can they really restrict a future purchase or inheritance?

Ask your HA to clarify.

kingstreet

That's my understanding too. You would not be permitted to purchase on shared ownership if you already own another property, but preventing you from buying one later when you already have a SO property?

I don't think so.

I'd like to see it in writing.

candycow

I must admit I have always assumed I couldn't own another as I couldn't to qualify. I will look in to it, thankyou. It's with the local council.

Fire_Fox

Whoever the executors are have to follow the wording of the wills, you can't randomly decide ask them to transfer the property to a business. Ask your parents to consider wording their wills such that the house is sold and the proceeds divided instead of the house being transferred into joint names.

It is often a PITA owning property or being in business with someone who is not in your nuclear family anyway, please take legal advice on the implications of linking your finances in this way, what happens if one gets into debt or divorces, one wants to sell and the other does not etc.

candycow

We would most likely sell the house keep some equity and buy something smaller to rent out tbh. I have no problem jointly owning with my sister, but I must admit, if the time came, I would seek legal advice about how my husband being in the mix affects things. He will inherit his parents property too, and His family situation is much more complicated.

As I say, hopefully all a long way off, but as wills were discussed recently, we've been musing the situation through.

richardw

Things may change between now and when they pass away, your planning may be a tad premature.

candycow

Things may change, you are right, and hopefully it will be a very long time until we are in that situation, but as there are a few health issues, it might not, and it's probably better to talk through possible ideas with my sister now, than when we are grieving, emotions are running high and expectations may be different. That's all I am doing at the moment, thinking of options, not going out and selling their house from under them or anything. As it is, it wouldn't have occurred to mre that I may be able to own another house now, so might have acted without thinking in the fuzz of grief, only to discover it was absolutely the wrong thing to do.

Thanks anyway.