Help please - is there a solution?

TrickyDicky101

Why doesn't your mother just rent a place (owned by a third party) rather than all this jumping-through-hoops to get to rent a place from you?

Morgage_Confused

I dont understand....why doesnt mum move into your place and you move to hers...isnt that the same end result?

holly_hobby

TrickyDicky101 wrote: »

Why doesn't your mother just rent a place (owned by a third party) rather than all this jumping-through-hoops to get to rent a place from you?

I suspect its that they intended to apply for housing benefit for Mum, and want the rental income, rather than it go to a 3rd party - probs re HB will be her ownership of another property OR its disposal (with the intention to deprive for the purpose of seeking state benefits).

With apologies to the OP if this genuinely isn't the case....

OP also needs to bear in mind that net rental income would need to be declared to both HMRC and (also 2nd property ownership) to DWP (regardless of to whom its let), which even if not subject to income tax (total inc below PA), it may well affect any entitlement to MT benefits they currently recieve or intend claiming for.

So bit of a vipers nest this one.

Holly x

Iamafreeman

Hi Holly, thanks for your input. I don't mind if it's not what I want to hear - I try to live in the real world :-)

I don't know what MT benefits are, but we are not intending to claim any benefits. Why rent off someone else if the money can stay within our greater family? My mother also has this wish that after she dies, I will be left with a property that will give us an income (I know it'll be mortgaged - but not forever.

The reason we're not swapping houses is because I am moving to a different town (where my mother is now), and there are 5 in my family whereas my mother is on her own. Therefore, our housing needs are somewhat different.

Please keep the comments coming. Cheers.

monty-doggy

MT is means tested. For example if you claim housing benefit but you have so much savings in the bank or property It will reduce or negate your entitlement.

holly_hobby

Iamafreeman wrote: »

Hi Holly, thanks for your input. I don't mind if it's not what I want to hear - I try to live in the real world :-)

I don't know what MT benefits are, but we are not intending to claim any benefits. Why rent off someone else if the money can stay within our greater family? My mother also has this wish that after she dies, I will be left with a property that will give us an income (I know it'll be mortgaged - but not forever.

The reason we're not swapping houses is because I am moving to a different town (where my mother is now), and there are 5 in my family whereas my mother is on her own. Therefore, our housing needs are somewhat different.

Please keep the comments coming. Cheers.

If your mother also has no intention of claiming housing benefit, I simply don't understand why you are moving into a house that you both jointly own, whilst buying another one for Mum to live in, and charging her rent for the privilidge.

Which does suggest to me that you do intend for the rent to be funded by housing benefit, either wholly or partly, especially with your comment that if reqd you can amend Mums percentage of ownership of the existing property). Additionally, even if Mum qualified, you should be aware that HB is capped at the appropriate rent for a property that is appropriate for the persons needs - which for a single person, would be a one bedroom residence (bungalow or ground floor flat for a person with mobility issues) - of course they could live in a 6 bedroom detached BUT they would have to fund the difference in rent themselves.

Happy to be corrected with the actual plan you had, if the above assumptions fall well wide of the mark.

Hope this helps

Holly

holly_hobby

Iamafreeman wrote: »

Ok, getting (more) desperate, or creative now. What if I were able to have a trust fund equal to a salary paid to me? Would the mortgage companies go for that?
Ta

A trust fund cant hold a mortgaged property.

I have know mge lenders on the rare occassion, accept trust fund income, but not in a circumstance as this.

Hope this helps

Holly

Iamafreeman

There is 100% no intention to claim any benefits. This thing is driven by two things. 1 - my mother wishes to help fund a bigger home for my family. 2 - she has a concern about care home fees - so she is 'gifting' her money/ assets on the recommendation of her financial advisor.

I do really appreciate all the advice/ thoughts you all have, but I don't want to start a fresh discussion about the (separate) issues above. Thanks :-)

holly_hobby

Iamafreeman wrote: »

There is 100% no intention to claim any benefits.

No problem - glad that we've finally bottomed that out.

Iamafreeman wrote: »

This thing is driven by two things. 1 - my mother wishes to help fund a bigger home for my family.

Mums are wonderful things ! And thats absolutely fine ... BUT the following isn't ....

Iamafreeman wrote: »

2 - she has a concern about care home fees - so she is 'gifting' her money/ assets on the recommendation of her financial advisor.

Should Mum be reducing her estate (which is apparently the plan) with the intention to later seek and benefit from state funded long term care assistance, she will fall foul of Deprivation of assets (DOA) assessment. This is where the local authority will class any such gifts or transfer as not taken place, and their assessment of her assets will include this gifted capital (and the share of a house that she does not live in) - as never taking place.

Mums FA needs to be aware of the implications of the "advice" they are currently recommending.

Hope this helps

Holly

Iamafreeman

Holly, many thanks again for your advice. Thank goodness people like you take the time to help us on here :T

Mum is wanting to reduce assets, but isn't intending on using a care home - health wise she's 100% and not that old, yet. (I guess it's a just-in-case thing). Her FA told her about the 7year guide line.

Without wanting to get off topic, is it correct that after 7 years gifts are not looked at?

Thanks again,
Pete