Buying a second property

mu85

Hi everyone, !I need a bit of advice if possible.!
I live with my father and my mum. My dad gets pip and pension credit. We live in a house which is fully been paid off. This is a house which we got through a council scheme, which we paid off after 5 yrs of living in it.!
I am in full time employment, and we are now looking to buy a second property and rent out our current house which we live in at the moment.!
Because my dad gets pip and pension credit we pay no council tax or very small percentage, I want to know if i was to buy another property and we all noved into this new property then would we in that case get help with council tax because of my dad?!
Also if let's say i was to include my dad's name on this new properties house deeds, would that affect his benefits, !and in that case would we get help with council tax?!
Basically, is my father allowed to be on house deeds of this new property, also is he allowed to be a joint mortgage applicant with me on this new property?!

Pixie5740

Is this thread a wind up?

Who exactly exercised the RTB and owns (is on the deeds) of the current property? If your parents start receiving rental income then shock horror, you might just have to start paying council tax.

If your father is receiving a pension then there's a good chance that he'll be too old to be a joint mortgage applicant with you.

Running_Horse

Not touching this one with a very long sh***y stick.

Except to say, if you can afford two houses, you can afford to pay a tax advisor for half an hour.

mu85

Why would it be a wind up?
We are both on the house deeds

mu85

My thread may sound a bit offensive, but the only reason we are trying to get another property is because the current area we live in is just unbearable.
Too much crime and we just want to get out of it, we cant sell the house for another 3 yrs

Pixie5740

Do you and your father want to be landlords and have you researched all this entails? If the area is that bad what sort of tenant do you hope to attract? The rental income will have to be declared to HMRC and may affect any means tested benefits your father receives.

As for the second property can you afford to buy it on your own as at 63 I don't think your father can be a joint applicant with you.

harrys_dad

Alternative view:

We have received a huge subsidy to remove our current house from the ever dwindling pool of social housing.

Despite this, we currently receive PIP, and Council Tax Benefit.

We now want to leave this !!!!!! area, but still receive whatever we can, despite being able to afford another property.

We want to rent out the house in this !!!!!! area for twice what it would rent for if it was still social housing.

.............................................................................

The reason it was suggested this thread could be a wind up is because it is designed to raise the supposedly righteous indignation of those who want ammunition against the many millions of genuine people who need social housing, who through no fault of their own need state benefits to maintain a minimal existence. These people use posts like yours to justify cutting benefits for people in genuine need, and making the poor even poorer.

Oh, and this is me being nice to a newbie, if you were a more established member I would be even more angry.

Pete9501

Actually, I think the idea is excellent and the OP should proceed at full speed with buying a second home. The family can then move and on the day they move inform the social that they no longer need any further support. It would be better coming from them rather than a tip off. The local council can also be informed that they are willing to pay the full rate of council tax in their new nicer home.

The individuals who rent the house in the nasty area will probably be grateful and also wish to pay full council tax, so everyone wins, even the rest of us, you know us hard working tax payers.

fishpond

What is "pip"?

G_M

mu85 wrote: »

I live with my father and my mum. My dad gets pip and pension credit. We live in a house which is fully been paid off. This is a house which we got through a council scheme, which we paid off after 5 yrs of living in it.!
So an alternative is you could sell it.

I am in full time employment,

we currently receive PIP, and Council Tax Benefit.

We are both on the house deeds

Strange - does the council know?


and we are now looking to buy a second property and rent out our current house which we live in at the moment.!
Because my dad gets pip and pension credit we pay no council tax or very small percentage,

I want to know if i was to buy another property and we all noved into this new property then would we in that case get help with council tax because of my dad?!
The new house is to be in your name? And you are in full time employment? So why would you be eligible for CT Benefit?

Also if let's say i was to include my dad's name on this new properties house deeds, would that affect his benefits,
Any means tested benefits will look at his total assets. If he jointly owns the property, it may affect his benefits.
Similarly, means tested benefits will be affected by his income. Since he jointly owns your current property he will be a landlord receivinf rent.
!and in that case would we get help with council tax?!
I doubt it, but do the maths!
Basically, is my father allowed to be on house deeds of this new property,
Of course he is 'allowed' to be.
also is he allowed to be a joint mortgage applicant with me on this new property?!

Yes, he can jontly apply for the mortgage. Whether a mortgage lender will approve a loan to you both as joint borrowers depends on
a) your specific financial circumstances, ages etc
b) the lender

Don't forget Capital Gains Tax will apply on your currenet home once it is no longer your main residence.

Also read:

New Landlords (information for new or prospective landlords)

Rambosmum

If you move out of a home purchased through 'right to buy' you risk the council putting a compulsory purchase order on it and forcing you to sell it back to them (at around the price you paid), this is the case whether or not your parents are on the deeds of the new place, it is occupancy that is the issue here.

You appear to be confusing 'deeds' with 'mortgage', deeds are who owns the house (excluding any mortage/ loands against it) and the mortgage states who is responsible for paying. You can have you on the mortgage and you and your parents on the deeds, though they will have to sign to say they won't cause any issues re the mortgage.

Being a landlord is more complex than you might suggest. You dad gets help with council tax due to income, not disability and you should only be getting up to a 25% discount if you work as well. If you don't then you won't get a mortgage and it's a moot point anyway.