Mum wants to sign home over to me

Ozzuk

Doesn't seem to stack up for me either, you shouldn't risk benefiting from the capital as it seems almost certainly a deprivation case. You mention the house needs work, and you could lose money on your current house - how will you fund the new work?

Far simpler, sell her house and keep money for future care needs. If those needs never arise, there is your inheritance. With your house, sell when you aren't in such a bad position, buy somewhere you actually want that has the work done.

Too many things can go wrong the other way - brother wants money, you split up, your mother gets investigated. Why bother?

Cheeky_Monkey

So where will your mother live OP in the intervening years it will take for her to be offered a Council flat/bungalow?

studentguy

Shnook wrote: »

She isn't intending that her rent in a council house would be paid for her but the rent would be cheaper than the loan payments she is making now so that could be a better option for her.

The rent payments are cheaper because it's subsided by the state, why should your mum be able to give away her home to you and get subsided housing when there are loads of people who have nothing who are paying their council tax to fund your mum handing down a property? Regardless of the legal aspects, it's clearly immoral.

Secondly, with council house lists being in the tens of years, she'll be on the list for a very long time, if not forever, what's she going to do in the meantime? Watch Ch4's "How to get a council house" - it's not as easy as you're making out, and the council would take a very dim view of this situation

Lioness_Twinkletoes

Shnook wrote: »

Even if she sells the house to pay the loan she will still need a council house

No, she can rent privately.

Cakeguts

Shnook wrote: »

It would only be deprivation if she was claiming housing benefit which she wouldn't. Even if she sells the house to pay the loan she will still need a council house and will pay rent either way, regardless if she walks away with money in her bank or not. She will have no house in both situations but at least if she signs the house over to us we benefit from it too.
My brothers name would be put on the deeds too so yes he would co own the house.

Deprivation of assets has got nothing to do with claiming benefits it is to do with give money to a family member. If your mother gives you the house she gives you the equity in it. That equity is money that could be used to fund her care if she sells the house. Also she won't get a council house because she will be intentionally homeless by giving you her house.

The only way you can do this is to buy the house from her at the market price. Then she either buys a smaller house or she uses the proceeds to rent privately.

Councils are not interested in giving people housing because they have made themselves homeless by handing homes over to family members who already have a home.

Basically if your mum signs the house over to you she will lose the equity in it. In order to avoid the deprevation of assets rules she had to be in a position to keep that equity in money so she can't give it to you.

tlc678910

Hi OP
Is there any scope to move in and live with your mum? Any potential for extending? With the permission of your lender you could let your house out and share the expenses of your mums house and loan with her.
Tlc

Shnook

Wow there is a lot of negativity on here !!!55357;!!!56853; thank you to anyone that actually offered any advice instead of just having a go.
By no means are we trying to cheat the system or do something immoral just my brother and I had been worried that my mum would lose her home if she started to fall behind or miss her loan payments. Her husband had talked in the past about releasing the equity in the house to pay off the loan but I have heard bad things about those kind of schemes so we were trying to think of alternate options.
Obviously if my mum ends up selling the house or signing it over at any point then we would look into what would be the best option for her, either privately renting or a council property. If she ended up losing the house she would be homeless and would have to try and get a council property at least this way we are trying to plan ahead and stop this from happening in whatever way is best.
It turns out now that her loan balance is still a lot larger than we thought I don't think the loan company she is with are very good and she is now in the process of going through a complaints procedure with them as it looks like they have added insurance and interest to the loan that she didn't know about. So whilst all this is being sorted not a lot can be done but try and carry on for the next few months until we know exactly what she owes.
Thankfully after having our home valued today it looks like we 're out of negative equity which is a relief so we are going to keep doing the improvements that need doing in our home at least knowing now that we will keep adding value and hopefully in the next couple of years whatever happens we can move or extend the house to make it work better for us.

AdrianC

Shnook wrote: »

Her husband had talked in the past about releasing the equity in the house to pay off the loan

She already released the equity, by taking the loan. He's talking about taking another loan against the house to pay that first loan off...

Long-term equity release means, in effect, a mortgage that you don't pay back. It just sits, the interest piling up, until they die and the house is sold - then the whole house goes, because there's a lot of years of interest...

Obviously if my mum ends up selling the house or signing it over at any point then we would look into what would be the best option for her, either privately renting or a council property.

Forget the council house. It is not going to happen.

If she ended up losing the house she would be homeless

If it's repossessed.
It's very unlikely it will be, and - even if it is - then she's still got ~£60k of equity in the property which will be paid to her once the lender sell the property. Except she'll see a lot more of it if she sells BEFORE repossession, because the sale will be more controlled, and because there will be fewer costs.

and would have to try and get a council property

Not. Happening.

at least this way we are trying to plan ahead and stop this from happening in whatever way is best.

You still can plan. Just... don't think the choices are this house or a council house.

It turns out now that her loan balance is still a lot larger than we thought

How much? Don't forget that YOU are only paying half of it off... The other half is from your brother's share.
£20k balance = £20k to clear + £30k to your brother = £50k to find.
£40k balance = £40k to clear + £20k to your brother = £60k to find.

I don't think the loan company she is with are very good and she is now in the process of going through a complaints procedure with them as it looks like they have added insurance and interest to the loan that she didn't know about.

<raises eyebrows>
That sounds more like them not keeping up with paperwork.

Thankfully after having our home valued today it looks like we 're out of negative equity which is a relief

Good.

so we are going to keep doing the improvements that need doing in our home at least knowing now that we will keep adding value

Mmm... It rarely works like that...

and hopefully in the next couple of years whatever happens we can move or extend the house to make it work better for us.

Good luck.

Cakeguts

Shnook wrote: »

.
we would look into what would be the best option for her, either privately renting or a council property. If she ended up losing the house she would be homeless and would have to try and get a council property at least this way we are trying to plan ahead and stop this from happening in whatever way is best.

Thankfully after having our home valued today it looks like we 're out of negative equity which is a relief so we are going to keep doing the improvements that need doing in our home at least knowing now that we will keep adding value and hopefully in the next couple of years whatever happens we can move or extend the house to make it work better for us.

People are not "having a go" if they are like me they are probably losing the will to live. You are not listening to what you are being told and it is very frustrating because we don't know why you are not listening to what you are being told by lots of people here.

The first thing that you have got to understand is this. Your mother won't get a council house. Council houses are in very short supply. They go to people who are homeless not to people who have the option of selling their current house and either buying a much cheaper smaller one or privately renting.

You still seem to be planning with the idea that your mother will get a council house which she won't so don't include council housing in any of your planning.

Start again your mother will not get a council house if she loses this one she will have to privately rent using the money from the sale of her house.

Basically you are not planning ahead at all because you are basing your planning on something that will never happen which your mother getting a council house so make sure you plan on the basis that she has to sell the house to get the equity from it.

Most home improvements do not add value to a property. People think that putting in a new kitchen will add value but your taste may not be the same as anyone else so the first thing that someone would do is take out your kitchen and replace it with one of their taste in which case they won't pay extra for your kitchen. There is a top price for any property in the road that it is in. If you spend more on your house than the top price in your road you will lose money. If you want to do home improvements do them for your family not with a view to sell because it is unlikely that anyone will want to pay extra for your improvements they would prefer to do their own.

LilElvis

Shnook wrote: »

Wow there is a lot of negativity on here .

Not negativity, more like incredulity at what you consider to be a reasonable solution to the housing of you and your immediate, and extended, family.

Transfer your situation to mine. My parents live in a large house with nearly an acre of garden and it is getting to be a bit much for them to manage in terms of upkeep, decorating and gardening. Do you think they could sign over a house worth around a million to me and move into a council house? Would you see that as taking the mickey out of the social housing system? It's exactly what you are proposing, with more zeros but no less bare faced cheek. Why shouldn't I get my childhood home if you can get yours?