Right To Buy Advice

AdrianC

If you can afford to buy it without a mortgage, why on earth are you getting housing benefit?

puzl

AdrianC wrote: »

If you can afford to buy it without a mortgage, why on earth are you getting housing benefit?

They get a very small amount of housing benefit (as they're both retired), not me. As I say, my name is not on the tenancy agreement. I pay my share of living there directly to them, which they use to pay the actual rent at the end of each month. My personal income/earnings are factored into the HB decision and taken accordingly.

I have also saved this money for over 10 years. They personally have no savings, hence why they never indulged in the idea of a mortgage or buying the home, prior to me researching it. Only now are we in a position where we can afford to buy.

AdrianC

So they're getting paid means-tested HB to help them afford their rent - but you're paying the rent for them?
Have they been open and honest about the fact that they receive income from a resident non-dependant direct family member with substantial savings?

puzl

AdrianC wrote: »

So they're getting paid means-tested HB to help them afford their rent - but you're paying the rent for them?
Have they been open and honest about the fact that they receive income from a resident non-dependant direct family member with substantial savings?

Everyone is means-tested, including myself. I am classed as a non-dependent and my earnings are taken into account when they made the HB decision. I pay my share of the rent that they deducted when working this out directly to my parents, then use the rest I give them to help pay for food/bills etc.. My parents pay the rest of the rent themselves.

I'm not sure what you're suggesting, but absolutely everything is legal and accounted for.

If I left, they'd get full HB per-week. As I live there, this is reduced dramatically, hence why I pay the rest directly to my parents. They still have rent to pay!

Pixie5740

In short, it's your parents who have the Right to Buy, not you so you must jointly purchase the property with them. If you want to use a mortgage to help fund the purchase you'll all have to go on the mortgage. If you have the funds to buy without a mortgage then you'll still need to purchase it jointly with those who actually have the right to buy.

After 5 years it might be possible for your parents to transfer their share into your name. However, any benefits they claim could be affected by just giving away the equity in their home. Likewise buying the property now could have an impact on any benefits they are currently claiming.

Currently your parents have a nice secure tenancy, once the property is in your name they'll be at the mercy of any changes in your life, marriage, death, divorce, for example.

Pixie5740

AdrianC wrote: »

If you can afford to buy it without a mortgage, why on earth are you getting housing benefit?

It's best not to think about it.

AdrianC

puzl wrote: »

Everyone is means-tested, including myself. I am classed as a non-dependent and my earnings are taken into account when they made the HB decision. I pay my share of the rent that they deducted when working this out directly to my parents, then use the rest I give them to help pay for food/bills etc.. My parents pay the rest of the rent themselves.

I'm not sure what you're suggesting, but absolutely everything is legal and accounted for.

I'm very surprised, then, that HB is available to somebody with sufficient disposable income to save the cash purchase price of the property within a few years, and with sufficient savings.

puzl

Pixie5740 wrote: »

In short, it's your parents who have the Right to Buy, not you so you must jointly purchase the property with them. If you want to use a mortgage to help fund the purchase you'll all have to go on the mortgage. If you have the funds to buy without a mortgage then you'll still need to purchase it jointly with those who actually have the right to buy.

After 5 years it might be possible for your parents to transfer their share into your name. However, any benefits they claim could be affected by just giving away the equity in their home. Likewise buying the property now could have an impact on any benefits they are currently claiming.

Currently your parents have a nice secure tenancy, once the property is in your name they'll be at the mercy of any changes in your life, marriage, death, divorce, for example.

Thanks, it's how I thought it would be. My question is, would I have to wait 5 years to transfer their share into my name only, or would I be able to do it instantly after purchase (and keep the RTB discount) ?

HB is the only benefit they currently claim. With us purchasing the house, they'd no longer need to claim it, hence they'd be able to get off any benefits completely (as there would no longer be any rent to pay anyway)

Also, in the event of my death, everything would be given to them anyway, so that wouldn't be an issue.

puzl

AdrianC wrote: »

I'm very surprised, then, that HB is available to somebody with sufficient disposable income to save the cash purchase price of the property within a few years, and with sufficient savings.

Again, the HB isn't for me. It's for them. Non-dependents don't need to factor in any personal savings when a HB decision is made. Only the tenants are means-checked with savings etc.. I am only required to declare my gross income per-week, of which mine isn't anything special at all. As I say, the reason I am able to purchase a house in cash is because of the large RTB discount, the fact I have been saving slowly for over 10 years, plus the house is in the North of England, so the value is far less than the national average.

Pixie5740

It's really your parents' discount, not yours so if they wanted to transfer the property out of their names within 5 years some or all of the discount would need to be repaid. The council will have the first charge on the property so no changes with the Land Registry can be made without involving the council.