Complex problem with house ownership

mushymatt

Okydoky25 wrote: »

£5k for 2 years rent doesn't seem worth keeping it anyway unless those figure are incorrect?

its a small flat in the !!!! end of nowhere - due to it being a low end rental we have (after 4 years) only had two tenants. Both of which only stuck around for 4-8 months each.

There was a period of time when she was still living there, and the time it took to make it good to rent.

marksoton

mushymatt wrote: »

At the time I/we had no idea she would get married, buy another house etc.

Which is why buying with family is such a bad idea.

fairy_lights

Couldn't she come off benefits, live off the rental proceeds from the flat and factor that cost in to how much each of you get when the flat is eventually sold?

Pixie5740

I get your sister had lived in the property for 12 years but couldn't she just have continued living in the property by renting it? I guess what's done is done though. Your sister needs to take proper advice (i.e. not just from a forum) to make sure she doesn't make things even worse for herself.

mushymatt

Pixie5740 wrote: »

I get your sister had lived in the property for 12 years but couldn't she just have continued living in the property by renting it?

From memory she had some cash saved and it was "well Id love to buy my place" and well....Numnuts here went "heres £45K" we can sort it out later.

Later is now....and things got complicated ;P

sammyjammy

I think she will have to accept that her benefits are reduced by this income, will she ever be in a position where she does not neeed to rely on benefits? This would be the time for you to formalise your arrangement. If you "own" 2/3s of the property why is your sister not giving you 2/3 of the income?

sammyjammy

If she purchased it for £75k what was the market value? It can't be that bad an area!

moneyistooshorttomention

I would think it's the best thing to sell the place now.

Obviously DWP will come after part of her share of the money in the flat. The problem will be as to how to avoid them treating her as if she still has your share of the money invested too. That's assuming she doesnt conveniently "forget" two-thirds of the flat is yours - as you don't seem to have any proof in writing that you own most of it:cool:

Right now - I can't see how you can manage to prevent the DWP getting your share of the flat proceeds, as well as your sisters share. I guess the only way forward is for your sister to get some job/any darn job she can for long enough that the capital from the flat has ceased to count as "capital". In sisters position I'd have to forget my own "jobs are 9-5 Monday to Friday office jobs" criteria I always stuck to (prior to retirement) and be prepared to have cleaning/shop/etc jobs even with antisocial hours and NMW for long enough to be able to use the "capital" as I decided to (ie give you back your two-thirds of the money) and then go back to a "standard office jobs only" standpoint as to what I would do for a living.

Sambella

There is usually a period of time you have to keep the ex council flat before you can sell it without repaying some of the discount. So if she is going to sell you would need to check that first.

You should also have made sure you had something in writing as regards this loan. Just in case.

mushymatt

moneyistooshorttomention wrote: »

I guess the only way forward is for your sister to get some job/any darn job she can for long enough that the capital from the flat has ceased to count as "capital".

hmmm...How would that work?