Buying parents council house - right to buy

mrginge

Lets stop beating around the bush.

YOU want to take advantage of a big discount, regardless of whether it's to your mothers advantage.

Poppie68

How does you buying this house which your mother has a secure tenancy of ensure your mother recieves the best care IF needed in the future? The only people who will benefit is yourselves and your children.
Just tell it like it is, you want to know if you can buy the house your mother lives in and owned by the LA because you see it as a way to make some money in the future!

theartfullodger

spartahawk wrote: »

hi,

my single mother is now 65,

I'm 66..

can i give my mother the money to buy the house,

Yes, very generous of you...

then in a few years get her to give me the house back.

"Get her to give me" sounds a bit too close to coercion/forcing someone to do something not necessarily in her best interests..


Before that happened she might meet a nice new toy-boy & give it to him...

this is a financial decsision to ensure she gets the best care when she is older - and if any money is left - to pass on to my children ( grandkids) to give them a better start than what we had...

OK, let's say you give mum the £££ and some time later she buys then some time later she gives the place to you (on which IHT may be payable if she dies within 7 years..)

If you then get into financial trouble (yes I know there's probably no chance at all of that - no chance...) become bankrupt & all your assets seized to pay off debts are you happy for her to be then flung homeless on the streets??

I'm just trying to ensure you realise there are risks involved, apart from other concerns that others have mentioned...

Good of you to want to help mum: Maybe a bit more thought??

Better_Days

Circumstances do change whatever your Mum says now.

When my parents divorced they agreed that Dad would pay reduced maintenance on the understanding that the house would be for me and my siblings. Ten years on, Mother remarried, sold the house and moved into rented. Some of the capital used to benefit new husband, rest certainly gone by now. House prices gone up so they will never be able to buy again.

There are a number of problems with your plan, not the least how your siblings will feel about this. What happens if your Mum sadly gets dementia and forgets or misunderstands your arrangement? I would suggest legal advice for both you, your siblings and your Mum (from different solicitors) so that if you go ahead everything can be fully understood by all parties that all aspects have been considered and possibly a trust set up to ensure your Mums best interests are served at all stages in the process.

cattie

spartahawk wrote: »

as mentioned - she would have secure tenancy if i bought the house.

my aim was to buy the house, relocate her to somewhere more manageable, and put the money made aside to give her the best care when she needs it.

without going too political and emotional, i do not trust the NHS to give her the best care.

thanks guys

She has a very secure tenancy indeed whilst she continues to live there as a council tenant, thank you very much.

If she wants to relocate somewhere more manageable then the council will happily do this as she is occupying a large council house & most councils now offer a financial incentive for tenants to move to a smaller property, so she would have some money to spoil herself with.

If you want to give her the best possible care if ever she is in need of it, then let her come & live with you & your family, or one of your siblings. Most elderly people would much rather live out their days in their own homes or be living with a family member rather than shoved into a care home, be it private or council run.

Building_Surveyor

mrginge wrote: »

Lets stop beating around the bush.

YOU want to take advantage of a big discount, regardless of whether it's to your mothers advantage.

Exactly what I was about to say. Your aim is to profit from getting a property cheaply and reap the benefits once your mom has left.

Your motivation for this is nothing to do your mother really is it?

She has a home for life already!! If your sitting on cash let her move in with you, build a granny flat or buy a bigger place for all of you to live in.

Cissi

spartahawk wrote: »

its a massive old 4 bed house without central heating.
i would sell this and get a modern smaller place with sufficient amenities to keep her warm and healthy.

So you want to buy it at a discount, funded by the tax-payers, and sell it on, presumably at market rate, using the difference to build up a future nest egg for yourself and your children? And meanwhile there is one fewer 4-bed council house available for a family who could really use it? And your mum loses the security of council housing?


This is exactly what's wrong with right to buy It's so tempting for families to see it as an opportunity to enrich themselves at the tax-payers' expense - and it's so easy for this to end up a disaster for everyone, no matter how well-intentioned.


I agree that there should be a sticky on this subject as there seems to be a new thread asking the question "can I/should I buy my parents' council house for them" almost every day...

RAS

Read this thread https://forums.moneysavingexpert.com/discussion/4859484

bitsandpieces

It's nice that you're wanting to help your mum buy extra care if she needs it, but I don't think this is the best way to do it. If you've got extra money, you can always just use this to buy in extra care if it's needed (while investing it well in the meantime).

Your mum currently has a secure tenancy, and is likely to be able to move to a more suitable council/housing association place if the big house doesn't work for her (lots of councils encourage this). If she buys with a RTB discount, she'll need to stay in the property for 5 years to avoid having to repay some of the discount - not great if the place is unsuitable now, and what happens if her health worsens? After the 5 years, she could downsize to free some cash up or give you the house, but if she's claiming means tested benefits then this cash may well be enough to stop the benefits (and giving the house to you is likely to be viewed as deprivation of capital). If she eventually needs care it could be viewed as deprivation of capital in future.

You say that you'll be able to give your mum security of tenure if you own her home, but what happens if you fall on hard times? Perhaps your in a secure job, but people become seriously ill, get divorced, and all kinds of other stuff.

SnooksNJ

spartahawk wrote: »

hi,

my single mother is now 65,

all her 4 children moved out years ago,

can i give my mother the money to buy the house,

then in a few years get her to give me the house back.

this is a financial decsision to ensure she gets the best care when she is older - and if any money is left - to pass on to my children ( grandkids) to give them a better start than what we had...


can i do this?

what is the best approach to take?:cool:

If you have money and want your kids to have a better start than you had why not use the money for them to go to University? That's what my parents did, but I guess that's old school now.