Buying grandfathers council house - should I ask him?

Legacy_user

I don't how to approach this really. Do you think it would be right to ask my grandfather about this..

Basically, he has stayed in his council house for over 30 years. It means if he wants to buy it, the council will give him a 70% discount off the market price. So it is worth buying in my opinion. But he doesn't have the money but I do. Do you think I should suggest that I buy it and let it back to him, or let him stay there rent free. He is currently paying rent to the council each month.

pyueck

You do not have right to buy, your grandfather does. You can lend him the money or gift it to him, however what he does with it is then his choice.

teddysmum

And , if he needs residential care, the house will be his asset with which to pay for it.

elsien

It wouldn't benefit him. It would mean he gives up the security of his low rent tenancy and having his maintenance etc sorted in favour of an arrangement where you could evict him any time if you have a falling out.
You are not suggesting this for him, you are suggesting it to make money for youself by taking advantage of his circumstances.

AdrianC

berbastrike wrote: »

I don't how to approach this really. Do you think it would be right to ask my grandfather about this..

Basically, he has stayed in his council house for over 30 years. It means if he wants to buy it, the council will give him a 70% discount off the market price. So it is worth buying in my opinion. But he doesn't have the money but I do. Do you think I should suggest that I buy it and let it back to him, or let him stay there rent free. He is currently paying rent to the council each month.

You're very generous to offer to freely give your grandfather the money to take up his right to buy. And, don't forget, you may also need to give him more money to maintain and repair it. Since he'll also now have a fairly significant asset, he may become liable for other charges and lose some of his benefits. He will also become liable to pay for his own care, if he needs it. I'm sure you'd hate for your generous gift to become a millstone for his finances, so I guess you'd be happy to cover those, too?

MisterB1959

i understand your motives, they are to defraud the local council of another of their housing stock, making it harder for them to provide affordable homes. I use the word defraud in the sense that YOU have no right to buy the property but are thinking of a way that YOU can profit from your grandfathers last 30 years of a reduced rent.

nearlyrich

According to your post last week you have £500k in the bank why do you need to charge you granddad rent?

bris

Hes also a serial house buyer, he also wants to buy his parents house for 200k, bit of a troll me thinks.

jackomdj

Probably going against the grain here but I will offer some advice.

My grandparents niece and her husband did just what you are proposing, in all good faith for my Grandparents. They (niece and her hubby) were very wealthy and they loved my grandparents dearly.

They lent my grandparents the money to buy the property with an agreement in place that the loan was either until the second one passed away or until they no longer needed/wanted to live at the property. At this point in time they had first charge against the value they had invested in the property plus interest (not sure on the rate etc). This meant they were able to live rent free for many years until my Grandad had passed away and my Nanny needed to move into a warden controlled home.

The agreement was drawn up by their solicitor and reviewed by a family friend of my Grandads who was a solicitor.

In the end because of when this was (back when interest rates rocketed) the rest of the family did not end up making money when the house was sold. But as I said my grandparents lived rent free for a long time.

Edited to add: the house was bought in my grandparents name, this was like a lifetime loan which had to be paid when the house was sold, either at xx rate or no more than what the house sold for. If the house value had gone up substantially and profit could have been left to whoever my grandparents chose.

System

Is it illegal? I don't think so

Would it make my grandfather money? Yes as he would be rent free

Would it make me money? Yes


I think its a good idea but can see why it could cause an argument

AdrianC

Given his admission in another thread that he's never had a girlfriend, I think DarkMatter from the Motoring forum has decided to spread his wings.