Does Pension credit reduce, if person buys property?

princessdon

Not to add that there are very few mortgages that allow a pensioner to be even named on the mortgage deeds.

TheCatMan

seven-day-weekend wrote: »

His house that he owns and lives in is not counted in the means test. A house that he owns but does not live in is classed as capital and is counted in the means test.

So, if it's his only home and he lives there, he should be fine

Thanks, really clears it up yes it is his only and main place of living. He just wants it under his name if his sons do a runner or get married etc

Am sure he will be pleased to note no reduction in his pension!

TheCatMan

Hi I heard back from him and was wrong ! Just to clarify he is getting State Basic Pension of £110 each week, NOT pension Credit. Will this still be the same or reduced ?

Again he is planning on living and buying the house he is in with his 2 sons.

Sorry to confuse all!
Thanks

pmlindyloo

State Pension is not affected by anything!

Mojisola

TheCatMan wrote: »

Hi I heard back from him and was wrong ! Just to clarify he is getting State Basic Pension of £110 each week, NOT pension Credit. Will this still be the same or reduced ?

As pmlindyloo says - state pension won't be affected but he may be entitled to some pension credit as well, depending on his income/savings.

TheCatMan

Plot thickens....

He is buying it under the Right to buy discount scheme.

So he is concerned his basic pension will be reduced or changed if he attempts to buy the house with the RTB discount scheme.

I have advised him why not just get the sons to buy it under there name since there the one paying for it, but there not always tenants.... and only the main tenant can apply for right to buy so I see why his worry exist !

I take it he wants to get the discount of RTB, but his sons to pay for the house, while all at the same time he can hold onto his basic pension each week.

I think he needs to ask the right to buy people or pension office really..

seven-day-weekend

His State Pension will not be reduced, nor will his Pension Credit if he has any, if it is his home that he lives in. Being a RTB makes no difference.

He will have to buy it in his name as he is the tenant with the RTB , no-one else can be on it unless they are also a named tenant.

Whoever provides the money the deeds can only be in the named tenant's name.

We helped my mother-in-law buy her bungalow under RTB, it was in her sole name although we provided half the money, because only she had the RTB. My husband inherited it when she died. If she had transferred it to his name before (I think) five years, she would have lost her discount.

So if your father is the only named tenant it can only be in his name.

xylophone

Father is the named tenant and his sons live with him?
Are the sons giving him the money or lending him the money to buy the house?
If a gift, the property belongs wholly to Father and in the event he needs care will need to be sold to fund it? The sons would thereby lose all their capital?

If a loan, a formal agreement is set up with the loan secured against the house so that in the event it has to be sold, the sons at least get their money back?

Or perhaps the loan will be set up in such a way that interest rolls up until the house is sold?

The sons and Father should take expert legal advice?

TheCatMan

thanks 7 day weekend, just what I needed to hear I will inform him it should make no difference.

Yeah I agree with above comment sounds quite odd legal aspects and all but I think there main issue was they gotta do it under there dads name, so the right to buy discount works, and his sons give him the money to technically buy and own the house.... while legally its under fathers name! Weird way but now that I see how big discount is I see why they wanna do it.