Right to buy (passing it onto family member?)

harryboyy

dacouch wrote: »

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

A genuine council tenant? My nan lives in the roughest, highest crime, most diverse part of London, even England. It hardly goes to genuine tenants in need, mostly scumbags and ponces.

harryboyy

booksurr wrote: »

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 not to prevent handing a whopping great wodge of taxpayer money to greedy relatives

Greedy relatives? Wait who even said I'm selling it!? Assumptions, I could live here, remove my nan's rent and let her know that it's staying within the family rather than going to a load of junkie scumbags like the rest of the estate is full of nowadays.

We would also be able to pay for anything she needs if she was to go into a care home but I would never do that, firstly I don't need a mortgage as I have the money easily and won't have to worry about the property for many years.

Innys1

harryboyy wrote: »

A genuine council tenant? My nan lives in the roughest, highest crime, most diverse part of London, even England. It hardly goes to genuine tenants in need, mostly scumbags and ponces.

Maybe, then, you'd be better off investing your hard earned somewhere else?

What's that...........? You wouldn't then get a discount? Ah, I see.....

dacouch

harryboyy wrote: »

A genuine council tenant? My nan lives in the roughest, highest crime, most diverse part of London, even England. It hardly goes to genuine tenants in need, mostly scumbags and ponces.

Fortunately the council decide who are awarded a council house and you have no input into it which is fortunate.

Interesting you choose the word "Ponce" as it's rather apt in what you're proposing.

onlyroz

harryboyy wrote: »

Greedy relatives? Wait who even said I'm selling it!? Assumptions, I could live here, remove my nan's rent and let her know that it's staying within the family rather than going to a load of junkie scumbags like the rest of the estate is full of nowadays.

We would also be able to pay for anything she needs if she was to go into a care home but I would never do that, firstly I don't need a mortgage as I have the money easily and won't have to worry about the property for many years.

As you seem so genuinely concerned about dear old nan, and you're obviously not short of money, why not buy her a house in a nice area rather than having her live among the junkie scumbags?

JencParker

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'm sorry to hear your nan is ill, but with all due respect, it is not hers to pass on to the family. The house belongs to the council not your nan. If she has lived there for 60 years, then she has been lucky to have the security of a home that is looked after by the council. She may feel like it belongs to her because she lived there so long but it doesn't.

Pixie5740

Innys1 wrote: »

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.

I don't think the 7 year rule would apply in this case as its not a straight up gift. It would be a gift with strings attached (I'll sign the house over to you but only if I can live in it for the rest of my days) so will always be taken into considering when calculating IHT. There might also be some other tax implications but it's not my area of expertise.

dacouch

Pixie5740 wrote: »

I don't think the 7 year rule would apply in this case as its not a straight up gift. It would be a gift with strings attached (I'll sign the house over to you but only if I can live in it for the rest of my days) so will always be taken into considering when calculating IHT. There might also be some other tax implications but it's not my area of expertise.

I'm not an expert but I think the RTB comes with a stipulation that you repay the discount if you sell / transfer ownership with five years of the RTB anyway

JKSandy

If your Nan signed it over to you she would have to pay back any discount, I believe its on sliding scale over a certain number of years.

Pixie5740

dacouch wrote: »

I'm not an expert but I think the RTB comes with a stipulation that you repay the discount if you sell / transfer ownership with five years of the RTB anyway

Yes the RTB applicant would have to repay some/all of the discount if the property is sold/given away during the first 5 years but even if granny waits that long it will still be a gift with reservation in terms of IHT.