Can I buy my parents council house?

westyorkshirewoman

I'm due to go through a divorce and to cut a long story short, basically can't afford to buy another property as I haven't got sufficient funds, so, my mum has suggested buying her council house, as she's been in it for approx. 28 years we would get a good discount and between us could afford it. The problem is, can I put the house in my name (I'm guessing not). My mum's Will leaves the majority of her wealth and belongings to myself, as my sibling never has done anything for her or helped her in her time of need and she doesn't want her to get anything, harsh I know, but that's life. If I do manage to put my name on any legal paperwork, can my sibling contest the Will later? Would really appreciate any help on this. Thanks in advance.

Soleil_lune

westyorkshirewoman wrote: »

I'm due to go through a divorce and to cut a long story short, basically can't afford to buy another property as I haven't got sufficient funds, so, my mum has suggested buying her council house, as she's been in it for approx. 28 years we would get a good discount and between us could afford it. The problem is, can I put the house in my name (I'm guessing not). My mum's Will leaves the majority of her wealth and belongings to myself, as my sibling never has done anything for her or helped her in her time of need and she doesn't want her to get anything, harsh I know, but that's life. If I do manage to put my name on any legal paperwork, can my sibling contest the Will later? Would really appreciate any help on this. Thanks in advance.

No. You can't buy it. Only your mother can. Only she can have the right to buy, as the tenancy is hers, not yours.

Of course, you can stump up the money (hopefully you have it, as I doubt you will get a mortgage,) and then you will have to hope your mum doesn't fall out with you and decide to leave it to your sibling.

If all goes smoothly with the buying of the RTB, and mumsy dies and leaves it to you, be prepared for a fight with your sibling. You will have to prove you deserve the property more. And you having stumped up the cash X amount of years back, may not be enough for you to have 100% of the house.

Mallotum_X

think up another plan.

This particular scam won't work.

lincroft1710

Only your mother can buy her council house and she has to wait, I think about 5 years to transfer ownership otherwise she has to repay the discount.

Your sibling can contest the will, it could be costly for them but unlikely to succeed without an exceptionally good reason.

G_M

I wouldnot see a problem with the will.

Indeed, the money could be given to mum as a loan, rather than a gift. The terms of the loan being repayment on death (either in cash or through transfer of the property). Loan agreement could be lodged with the will.

If mum does not have a will as yet, discuss this with solicior when drawing up the will.

This would also have Inheritance Tax advantages, as the loan would not fall within the Estate for tax purposes, whereas a gift would be part of the estate.

Alter_ego

You could loan your mother the money to buy and put a charge on the house for the amount owed - provided there is not a lender involved,

AdrianC

I wonder whether there should be a sticky on this topic.

MisterB1959

yes, we could call it ' fraudulent purchase of property, in order to make money' or something along those lines?

Pixie5740

Don't hate the player, hate the game. We all know that RTB was a vote buying policy but that's not the OP's fault.

If the OP needs a mortgage to do this it's a non-starter. On the other hand if the OP has enough cash to do it then it might be possible. As G_M says, the most tax efficient way would be for the OP to lend the money to her mother and have a 2nd charge on the property as the council would have the 1st (I think).

The loan would be repayable when the house is eventually sold. However, there are still downsides to this. Yes the loan will be repaid during probate but what if the OP's mother gifts the rest of the estate to all her children, the local donkey sanctuary, or finds herself a toyboy in her twilight years and leaves the house to him? All the OP would get is the loan repayment and maybe a part share of the house.

What if the OP's mother survives the OP?

What if the OP's mother mother needs residential care later in her life?

What if, ifs and buts were candy and nuts?

There's also the matter of repairs and maintenance? Who would be responsible for that?

TartanSaver

I hate these threads. This amounts to: "can I put my mother at significant risk by taking her cheap, secure tenure, in a well maintained house, away from her and having her house for myself? I will also be making her responsible for repairs and maintenance, and exposing her to risk of losing her home if she goes into care. If the council upgrades their housing in her area, she won't get any (like improved insulation or a new boiler.) And if it's a flat? God help her if the council decides to replace the roof, or the lifts."

Since the OPs mother actually suggested it (according to the OP, anyway) I'll give you the benefit of the doubt and hope it's was well intentioned. But the risks are huge, for both parties. If she has room for you to live there with her (presumably that's part of the plan) why not just move in and help her with rent? Council rent is cheap, you could save towards buying somewhere for yourself.

p00hsticks

Soleil_lune wrote: »

If all goes smoothly with the buying of the RTB, and mumsy dies and leaves it to you, be prepared for a fight with your sibling. You will have to prove you deserve the property more. And you having stumped up the cash X amount of years back, may not be enough for you to have 100% of the house.

The OP wouldn't have to "prove they deserve the property more" at all - providing the mother wills it to her that it all that is required, especially if it explained that the house was deliberately being left to the OP because they had provided the money to buy it.

Contrary to popular myth there are very few legitimate grounds to contest a will and the sister would just be throwing money away on solicitors if she attempted it.