Estate executor house sale advice needed

Fire_Fox

Ames you could buy a flat in Bradford outright for that much money.

Ames

I was hoping to buy a proprty, there's plenty of places in W. Yorks where I could buy outright. But I have a fantastic GP and don't want to leave her catchment area. Plus there's deprivation of capital issues. There's also the distance to the hospital - I'd have to travel to Leeds for my blood transfusions as I think it's the only hospital in the area that has an immunology department. Other patients are from all over the county.

Buying a flat/leasehold property is awkward because of having to find the service charges. Plus with any property I'd have the cost of adaptations on top of purchase price and all the fees etc.

I haven't quite given up on the idea, but I don't want to get carried away and disappointed.

I'll be seeing a financial advisor if I have to invest it. I've even thought about power of attorney, but obviously don't have anyone I can trust with that.

Fire_Fox

Ames wrote: »

I was hoping to buy a proprty, there's plenty of places in W. Yorks where I could buy outright. But I have a fantastic GP and don't want to leave her catchment area. Plus there's deprivation of capital issues. There's also the distance to the hospital - I'd have to travel to Leeds for my blood transfusions as I think it's the only hospital in the area that has an immunology department. Other patients are from all over the county.

Buying a flat/leasehold property is awkward because of having to find the service charges. Plus with any property I'd have the cost of adaptations on top of purchase price and all the fees etc.

I haven't quite given up on the idea, but I don't want to get carried away and disappointed.

I'll be seeing a financial advisor if I have to invest it. I've even thought about power of attorney, but obviously don't have anyone I can trust with that.

Does deprivation of capital work for purchasing a house you live in since you'd no longer be claiming any housing benefit (if you do)? I don't know the answer, it's a genuine question.

Service charges are very variable, you can pay a lot less if you don't have things like lifts to content with (so small block, ground floor for you?). I have a friend in West Yorkshire paying next to nothing, under £100 a year IIRC (plus ground rent and buildings insurance) whereas I am paying far more than that every month.

At present service charges and ground rent can be claimed, either as part of Support for Mortgage Relief, income based JSA, housing benefit (!) and I *think* ESA. I own outright and have claimed under JSA before. Major works cannot be claimed, but you can currently claim for loans under SMR if you can demonstrate the money was spent on essential repairs, which major works are. Obviously the benefits situation can change, but it might be helpful to know you could have that to fall back on if things get tough later down the line?

Ames

I was told on the phone by the DWP that I'd be sanctioned if I bought a house. It's not quite that straightforward, but it would depend on the decision maker. It doesn't matter about housing benefit, all they care about is that they'd carry on paying income support, when I could support myself for a few years. I was geared up for that fight, but I just can't keep living here any longer so I'm going for medical rehousing in somewhere suitable. As the fact that I'm living somewhere completely unsuitable to my needs is my biggest argument in favour of being able to buy a house, once I move I'll have to abandon the idea of buying somewhere. But the chances of being able to afford somewhere, and pay for adaptations, and have a small reserve for repairs, and getting permission... well they're not high.

I didn't realise service charges could be so little. Council service charges round here for leaseholders are in the region of a few hundred a quarter, with the potential for a bill for up to 10k for major works. I assumed private would be higher. It's good that they can be covered by Housing Benefit, but I don't know if I could claim HB purely for service charges? And as I'm under 35 I'm very wary of relying on benefit rules staying the same.

Fire_Fox

Service charges for ex social housing flats, including major works, are likely to be the highest because they are often permitted to do improvements not just repairs and maintenance. I would never buy an ex council or ex housing association because you can get whacked for a bill of tens of thousands of pounds. :eek:

With private ones it depends on many factors, what services are provided and who does the work (agents always take a management fee). My friend's block basically has no communal areas, the doors open to the outside, even the upper flats. No lift to maintain, no communal corridors so no electricity or cleaning, no window cleaning, a tiny patch of garden and a tiny parking area. There is little to do so no agent and no management fees. My parents block is self managed and they have a lot of expenditure because it's a mahoosive listed mill, they have to get cherry pickers or scaffolding just to clean the numerous windows and to inspect and repair the roof, they have quite a lot of car parks, grounds and lifts which are all expensive.

It's a couple of years ago but ... I was told you could claim HB just for the service charges, IF you couldn't get them paid with another benefit. I claimed mine with JSA (a couple of weeks and then I got work, yey!). I can't guarantee that is true, the people I spoke to at the Jobcentre and the council didn't seem 100% about anything, I imagine it's pretty unusual to have no mortgage yet need help with your service charges. I think you can also get service charges with ESA?

I see what you mean about the sanction, that makes sense. You have to do what feels right to you, I think it's good to consider the options then you know you made the right choice. I love having my OWN flat, that I can afford to work part time for my health, that I can't blow all the money it's safe in bricks and mortar unless I choose to sell. But I could not get that security in social housing, if you can maybe that is better for you.

Ames

That was mine and mum's dream. That with a secure home of my own I could dip in and out of benefits/work when my health changed, without worrying about homelessness. I'm doing a part time degree and volunteer work, and doing what I can to get to that point but I've had a massive dip this year.

Without housing costs I could manage with part time income.

If she'd made a will she could have left my share in trust, so DOC wouldn't be a problem. But she didn't get round to it.

GDB2222

Hi again, Ames. You seem remarkably clued up on the benefits system.

I was less worried than other people about your being rather dominated by your sister and father. They are family, and your sister has an interest in half the property. So, it's right that you take their views into account as administrator of the estate. There's also some truth in what they say - properties do sell better in the spring, for example. So, I would not rush to have a fire sale now it's gloomy in November, and I'd go along with them to keep the peace.

I would have a 'money' discussion with dad. Before that, speak to an adviser about raising perhaps £15,000 more on the house itself, so you know what is possible. Explain that you can't go on funding the expenditure on the empty house, and it's getting you down. Then speak to dad and find out what he thinks. You are absolutely right to look ahead, and you can see additional expenditure on the horizon that you cannot afford. So, you need a plan to meet it.

By the way, the very worst that can happen is that the house gets repossessed. That does not mean that you lose it. The bank will take it over, sell it, pay themselves their loan and costs, and the estate will get the balance. It's not good, but it's not an utter disaster.