Buying parent housing association home on a right to buy discount

RaiderHammer

Hi thinking of buying my mums housing association home on a right to buy discount. Just wondering if anyone has done this and if they are aware of any pitfalls.

My mum pays no rent at the moment, housing benefit pays the rent direct to the housing association, also no council tax. Would I be able to set a rent for my mum if I purchased the house and the housing benefit still pay this rent?

Is my mums entitlement to council tax benefit likely to be affected?

What about the discount if my mum passed away would it need to be repaid if this were to happen within so many years? I ask because my mum is in her 80's now.

Going to ask the housing association for the details but would be interested to hear any thoughts from others that have done this.

Thanks.

st999

You can't buy the home, only the tenant.

haras_nosirrah

#sticks head below parapet and waits for onslaught#

RaiderHammer

st999 wrote: »

You can't buy the home, only the tenant.

Yes realise that but I understand there are ways around this where the tenant buys it but I would have the mortgage in my name and be the owner.

That's the situation I was wondering if there are any pitfalls of me and my mum, the sort of questions the housing association won't necessarily answer.

marliepanda

You can't own it. Your mum has to get the mortgage and own it. If you want to give her the money for her to own it, then that's a way, but she will own it.

And don't be ridiculous about 'setting a rent' and HB paying that for your mum to you? You think you can buy a house (it will be your mums house) and they'll pay her rent on it? To you?

Are you really that naive? It's her house, no you can't get rent paid on it!!!

ethank

You have no right to buy the property only your Mum does.

It is unlikely your mother could obtain a mortgage due to her age. In any case your Mum would need to satisfy that she has the required affordability to purchase the property.

Even if you were able to purchase the property, any Local Authority is likely to deny an application for housing benefit on the basis that this would be a 'contrived tenancy' - taking advantage of the Housing Benefit system to allow you to purchase an asset.

Why do you want to purchase the property?

Yorkie1

Do you live with your mother?

Are you sure that this particular HA property comes under RTB rather than RTA?

As others have said, even if the property is eligible for RTB, and you meet the residence criteria, your mother will have to be party to any mortgage and be on the deeds. The purchase cannot be in your name alone. Her age is likely to prevent any mortgage being available.

And, of course, even if a mortgage could be found, she would be a co-owner and thus not eligible for HB - ignoring any issues about getting HB on a contrived tenancy.

Really, your idea is a complete non-starter.

Your mum's interests are much better protected by leaving her with her secure tenancy, and no responsibility for capital outlay on any fabric repairs.

The only interests being served here appear to be yours, with the temptation of a cheap purchase.

GwylimT

You are unable to buy her home, only your mother can, and due to her age this would only be possible if she was a cash buyer.

suzannewysiwyg

I think you could do it, if you were to buy the property outright for her, in cash, but you wouldn't be able to charge her rent?

McKneff

As said above, youre mothe would own the house, she then in turn would obviously not get housing benefit.


If she needed care say in a nursing home the house, if she lived alone would have to be sold to fund her care. If she does not live alone, a charge could be put on it to be paid on hers and the other person living there after their deaths.


This topic has been flogged to death.

xKayx

If you were to move in with your mum for 12 months and have your name put on the tenancy there COULD be a possibility BUT I'm sure it would still have to be a joint mortgage.

This is how it works for people wanting to buy jointly with their partner that isn't on the tenancy when wanting a joint mortgage on a HA home so no idea if this would apply with your mother especially due to her age.