Right to buy (passing it onto family member?)

harryboyy

Hello!

Just wondering, if the house that's been granted right to buy status, can I be allowed to purchase my Nan's house? I have the money to and won't need a mortgage, but obviously there is still a lot more wider family involved could they take a percentage or try to when my nan passes on? I wish to buy it, being the only one to mention this to her and she wishes for me to have it in my name, but is this allowed and can anyone else try taking a cut when she passes away? Wish to know this information before I go further with this.


Many thanks!

Harry

dacouch

Hopefully not

Pixie5740

No you can't buy it as it is your gran who has the right to buy, not you. You can give her the money to buy it and it will be her name on the deeds. If she is claiming any benefits then owning the property rather than continuing to rent may affect those benefits. Should she require residential care in the future the council can use the house to fund her care and no signing the property over to you won't circumvent that.

TBagpuss

No, the right is hers, not yours.
You could give her the money, as Pixie says.
You might be able to lend her the money, secured by a charge over the property,but you have to consider - what is in it for her? She would then have financial responsibility for the property, capital (as she would have the equity created by buying at an under value) which would become relevant if she needed to go into care, and she might find that it complicated matters in the event that she needed to downsize or move to adapted or more accessible housing.

Also - your grandmother had the benefit of affordable council housing, which she will presumably continue to have for as long as she needs it. You clearly don't need that, if you have managed to save enough to buy it (even at a discount) outright - why not leave it it council ownership so once your grandmother no longer needs it, it can become available for someone else who needs it?

jaylee3

If you DO buy it, can you afford all the repairs and maintenance over the years, and the gas maintenance contract and the insurances that go with the house? And what about if she needs to go into care sooner rather than later? The DWP might come along and make you sell the property to fund her care, as they MAY see it as deprivation off capital/assets.

Just saying...

harryboyy

Thanks for the answers here, however no one is understanding exactly what I am trying to say. I am giving the money to my nan to buy the house, not me, however she wishes to put it in my name as soon as it happens, I am wondering if this is allowed, I cannot see why not? My nan is very ill and wants to keep it in the family by passing it to me rather than giving it back to the council, she has lived there and looked after the property for more than 60 years.

Pixie5740

Yes she can buy the property and then put it straight into your name. She will have to repay the whopping big discount first of course because the council will have the first charge on the property.

dacouch

What you're trying to say, is that between you and your nan you would like to use the RTB discount to buy the house on the cheap and then pass it onto you for an immediate profit of £50k +

The council are unlikely to rebuild a new council house so the social housing pool loses a house and you make £50k.

As others have explained there are a number of obstacles in your path to try and prevent this and to ensure the RTB discount goes to the genuine council tenant

Innys1

harryboyy wrote: »

Thanks for the answers here, however no one is understanding exactly what I am trying to say. I am giving the money to my nan to buy the house, not me, however she wishes to put it in my name as soon as it happens, I am wondering if this is allowed, I cannot see why not? My nan is very ill and wants to keep it in the family by passing it to me rather than giving it back to the council, she has lived there and looked after the property for more than 60 years.

I thought Councils looked after Council houses, not the tenants?

Plus, the house isn't in her family - its the Council's until she buys it. Renting somewhere does not make it your property.

At any rate, if she puts it in your name as soon as she's bought it, that's a gift according to IHT rules so you better hope she lives 7 years afterwards.

booksurr

harryboyy wrote: »

I am wondering if this is allowed, I cannot see why not? .

no it is not allowed for precisely the reason why you want to do it, the discount belongs to her. If ownership is no longer in her name then she loses the discount and it must be repaid

brighter people than you have thought out how to prevent handing a whopping great wodge of taxpayer money to greedy relatives

onlyroz

You can certainly give her the money to buy the house. But if she then tries to give the house back to you she will have to repay the massive discount that she receives on the purchase. Also, if she needs to go into a care home in the future the house would have to be sold to pay for it.