Helping Dad buy council flat, will it affect me from getting 'first home' benefits?

Norman_Castle

AdrianC wrote: »

Apart from a possible increase to your eventual inheritance subsidised by council tax payers and those denied a future council home, is there any actual benefit for your father in owning his flat, with the increased costs and decreased security of tenure that carries?

As explained to you in a previous thread, council housing is not subsidised by council tax payers. Council housing is self financing.

Housing Revenue Account - Income and Expenditure Statement
The Housing Revenue Account (HRA) reflects a statutory obligation to maintain a revenue
account for local authority housing provision in accordance with Part VI of the Local
Government and Housing Act 1989. The Account is required to be self-financing and cannot
subsidise or be subsidised by the General Fund. The HRA Income and Expenditure
Statement shows the economic cost in the year of providing housing services in accordance
with generally accepted accounting practices, rather than the amount to be funded from
rents and government grants. The Council charges rents to cover expenditure in accordance
with regulations; this may be different from the accounting cost. The increase or decrease in
the year, on the basis of which rents are raised, is shown in the Movement on the HRA
Statement.

AdrianC

Norman_Castle wrote: »

As explained to you in a previous thread, council housing is not subsidised by council tax payers. Council housing is self financing.

Perhaps you might care to re-read what I wrote?

The RTB discount does provide a potential subsidy for the OP's inheritance by council tax payers, since the OP's father exercising that discount will undoubtedly result in increased costs to the local authority.

Norman_Castle

Pk_King_X11 wrote: »

The question is, should I appear as a joint tenant in the application form?

Are you currently a joint tenant? If not then no.

Norman_Castle

AdrianC wrote: »

Perhaps you might care to re-read what I wrote?

The RTB discount does provide a potential subsidy for the OP's inheritance by council tax payers, since the OP's father exercising that discount will undoubtedly result in increased costs to the local authority.

How?........

AdrianC

Norman_Castle wrote: »

How?........

Quite simply because either the people who would have been housed by the council need to be housed elsewhere, resulting in higher HB payments, or the council need to spend more than they've received on replacing that stock.

silvercar

AdrianC wrote: »

Quite simply because either the people who would have been housed by the council need to be housed elsewhere, resulting in higher HB payments, or the council need to spend more than they've received on replacing that stock.

Only if the people being housed rely on HB payments. They may be workers self financing but in need of a home.

silvercar

AdrianC wrote: »

Apart from a possible increase to your eventual inheritance subsidised by council tax payers and those denied a future council home, is there any actual benefit for your father in owning his flat, with the increased costs and decreased security of tenure that carries?

Once the mortgage is paid off, there will be no rent or mortgage to pay.

Norman_Castle

AdrianC wrote: »

Quite simply because either the people who would have been housed by the council need to be housed elsewhere, resulting in higher HB payments, or the council need to spend more than they've received on replacing that stock.

You're assuming these other people will receive housing benefit.
Any money spent replacing these homes will be repaid from rental income. Thats how self financing works.

You're intent on finding reasons to claim council tax payers fund social housing.

antrobus

Pk_King_X11 wrote: »

..The question is, should I appear as a joint tenant in the application form? Am I required? What are the benefits of being a joint tenant? Will it prevent me from getting government's benefits later on when I'm buying my own first home (probably with the help of my dad)?

Thanks.

G_M has given you the correct answer.

If your father can qualify for a mortgage on his own, then he can purchase this RTB property in his own name. You can pay your father rent, to help him clear the mortgage "quickly". You can make whatever private arrangement you wish with your father regarding any help he later provides.

Pk_King_X11

Thanks for all the replies!

AdrianC wrote: »

is there any actual benefit for your father in owning his flat?

silvercar wrote: »

Once the mortgage is paid off, there will be no rent or mortgage to pay.

Exactly. Plus, we could sell that flat for a 50% profit after 5 years (which we have no desire in doing though).

IAmWales wrote: »

I expect they're wanting their 50% freebie to finance the second

If it's legal, I don't see a problem here. This is a money saving forum is it not? It's not like I'll have 2 houses. My dad will have his, I will have mine. They will both be our first homes. That is fair.

antrobus wrote: »

G_M has given you the correct answer.

If your father can qualify for a mortgage on his own, then he can purchase this RTB property in his own name. You can pay your father rent, to help him clear the mortgage "quickly". You can make whatever private arrangement you wish with your father regarding any help he later provides.

Thanks. Another question. If my dad wishes to give this place to me in the far future, will it be difficult without being a joint tenant? Is there tax to pay or something? Or can he just give it to me just like that?