Question about buying property, Deprivation of capital & JSA

lighting_up_the_chalice

Solitaires wrote: »

You don't have to inherit, you can apply for a 'Deed of Variation' on the will and have the money left to your mother.

I've no idea how this would affect the deprivation of capital situation, but might be worth investigating.

But mum seems to be in the same boat, hence the concern over the bedroom tax.

zzzLazyDaisy

Solitaires wrote: »

You don't have to inherit, you can apply for a 'Deed of Variation' on the will and have the money left to your mother.

I've no idea how this would affect the deprivation of capital situation, but might be worth investigating.

That would also be deprivation of capital. It might be more difficult for DWP to find out about it, but if they investigated, and discovered this had happened, then OP would be deemed to still have the money.

papasmurf13

zzzLazyDaisy wrote: »

That would also be deprivation of capital. It might be more difficult for DWP to find out about it, but if they investigated, and discovered this had happened, then OP would be deemed to still have the money.

If I was on the rent book as a joint tenant with my Mom and both names were put on the deeds when purchased would there be a problem in that scenario as the house would technically be mine?

and to the poster that mentioned the 'Deed of Variation' idea, I don't want to go down that road, I want everything above board as I've found skeletons in your closet have a tenancy to escape when you least expect it! so that's a no go.

I am quite happy just buying a small flat and fending for myself, but I'm worried about my mom because she will get hit for 'bedroom tax' twice if I move out and I know she cant afford it. It seems a shame that she could be forced out a house she has lived in for 35 years and paid rent for the majority of that time, she was in tears over it today. There must be thousands of others that will be in the same boat shortly

lighting_up_the_chalice

papasmurf13 wrote: »

If I was on the rent book as a joint tenant with my Mom and both names were put on the deeds when purchased would there be a problem in that scenario as the house would technically be mine?

and to the poster that mentioned the 'Deed of Variation' idea, I don't want to go down that road, I want everything above board as I've found skeletons in your closet have a tenancy to escape when you least expect it! so that's a no go.

I am quite happy just buying a small flat and fending for myself, but I'm worried about my mom because she will get hit for 'bedroom tax' twice if I move out and I know she cant afford it. It seems a shame that she could be forced out a house she has lived in for 35 years and paid rent for the majority of that time, she was in tears over it today. There must be thousands of others that will be in the same boat shortly

Are you on the rent book as a joint tenant now?

If not, has your mum always been on the rent book on her own (ie no former partner on there with her)?

zzzLazyDaisy

papasmurf13 wrote: »

If I was on the rent book as a joint tenant with my Mom and both names were put on the deeds when purchased would there be a problem in that scenario as the house would technically be mine?

As far as I am aware, that would be permitted by DWP. Whether it is permitted by the council/housing association depends on their rules on succession and whether she has also previously succeeded to the tenancy (eg when your Dad dies for example). You need to seek advice from your mum's social landlord about that.

I am quite happy just buying a small flat and fending for myself, but I'm worried about my mom because she will get hit for 'bedroom tax' twice if I move out and I know she cant afford it. It seems a shame that she could be forced out a house she has lived in for 35 years and paid rent for the majority of that time, she was in tears over it today.

If you cannot buy the house with your mum for some reason, your other option is to remain living with her and helping her out with the bills etc, and invest the inheritance to provide an income while you look for work.

There must be thousands of others that will be in the same boat shortly

Yes, but to be fair, social tenants are only just being brought under the same rules that have applied to private tenants for years.

Dx .

papasmurf13

lighting_up_the_chalice wrote: »

Are you on the rent book as a joint tenant now?

If not, has your mum always been on the rent book on her own (ie no former partner on there with her)?

No I'm not on it at the moment, but could look into being added, I've been living back at my moms for 4 years now.

and my mom has been the only name on the rent book since about 1981 when my dad left.

zzzLazyDaisy

papasmurf13 wrote: »

and my mom has been the only name on the rent book since about 1981 when my dad left.

Be aware that this could be a problem as many social landlords only allow one change to the tenants names in the life of the tenancy. But the only people who can tell you that are her landlord.

lighting_up_the_chalice

papasmurf13 wrote: »

No I'm not on it at the moment, but could look into being added, I've been living back at my moms for 4 years now.

and my mom has been the only name on the rent book since about 1981 when my dad left.

It's likely that the change from a joint to single tenancy in 1981 was the single succession entitlement under a secure tenancy. A further succession, from single (mum) to joint (mum and you) tenancy would be at the discretion of the landlord. That would probably be the first question to clear up.

RAS

papasmurf13 wrote: »

I
I am quite happy just buying a small flat and fending for myself, but I'm worried about my mom because she will get hit for 'bedroom tax' twice if I move out and I know she cant afford it. It seems a shame that she could be forced out a house she has lived in for 35 years and paid rent for the majority of that time, she was in tears over it today.

She can take a lodger in and use that income to reduce her reliance on benefits and stay in the house if she wishes.

HappyMJ

zzzLazyDaisy wrote: »

I wouldn't.

In my view, this would be clear deprivation of capital. OP would be giving away a huge chunk of money to his mother, for her to buy a place in her own name, which he would have no financial interest in, or right to live in.

That is a massively different scenario to OP buying a place, in his own name, to provide a home for himself.

OP, if you intend to buy your mum's house you must be a joint tenant and your name must be on the deeds of the house once you have bought it, otherwise, in the eyes of the DWP, you have literally given the money away, and there is a very high risk that you will be treated as still having the money for benefits purposes.

He's buying a property for half of it's market value. As I said I would not worry about deprivation of capital rules and just go ahead and buy it. Of course he will probably be hit with DofC but he and his mum will be living there anyway. Rent free...No housing benefit claim. Saving taxpayer money... if he moves out mum can take in lodger and give that to him if he really needs some cash in the future as a way of saying thanks for the house. Depends on how much he trusts his mother to help him out in the future.