Mum wants to sign home over to me

Shnook

AdrianC wrote: »

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...

Yes I know that and I understand what long term equity release is that is why I advised them against it.

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

Well we won't rule it out as I know plenty of people who were not homeless who got a council property without any trouble.

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.

There is a good chance it could be if something isn't done and if it was and they sold it on to get their money she is unlikely to see the full equity from it. I have advised her that selling will most probably her her best option.

Not. Happening.

Again we will see.


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

There will be several options we will look in to.


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.

As I have stated several times before we won't be finding my brothers share if this went ahead he is happy to receive his share further down the line.

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

Nope just a dodgy loan company which when taking very little time to look them up have found many many people complaining of similar scenarios with the same company.


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

Well of course we are realistic there are improvements that we want to do to the house for us but that will only help the property if we ever do sell.


Good luck.

Thanks :money:

Cakeguts

I know 4 people who got council homes. All of them were retirement flats and 3 of the people were living as long term lodgers in someone else's house before they got their own homes. One was living in a house owned by someone else and they wanted to sell it so that person got sheltered housing.

I have a home. I will not get council housing just like your mother who also has a home. People with children get preference. Adults who already own a home do not get council housing.

Homeless doesn't always mean living on the streets. It can include people who don't have a home of their own. This can include people who are sofa surfing. Your mother does not meet any of the homeless requirements because she owns a home.

Since all the people who I know got council homes things have got much tighter and it is now almost impossible to get a council house for any age group. Who got a council house in the past doesn't mean that anyone will get one now. There is a nationwide shortage of social housing. Your mother will not get social housing.

You are still planning based on something that will not happen. Do some planning based on the fact that your mother will not get council housing and that she will need to access privately rented property using the proceeds from the sale of her house to pay the rent.

elsien

I don't think anyone can categorically state your mother won't get social housing - in some areas if someone is disabled and meets the criteria for sheltered housing, for example, then it's not impossible. I know someone who sold up and moved into sheltered housing. Then promptly moved back out because she hated it - too cramped compared to her previous house and everyone into each other's business.
But it very much depends on where you live and your local councils allocation policy. So your mum should check her councils criteria and the length of the waiting list (if she's allowed to register at all) and also consider that some councils now don't allow any refusals - you accept the offer even if it's a terrible area or get taken off the list. There is now not always the luxury of having a choice.

Cakeguts

elsien wrote: »

I don't think anyone can categorically state your mother won't get social housing - in some areas if someone is disabled and meets the criteria for sheltered housing, for example, then it's not impossible. I know someone who sold up and moved into sheltered housing. Then promptly moved back out because she hated it - too cramped compared to her previous house and everyone into each other's business.
But it very much depends on where you live and your local councils allocation policy. So your mum should check her councils criteria and the length of the waiting list (if she's allowed to register at all) and also conside that some councils now don't allow any refusals - you accept the offer even if it's a terrible area or get taken off the list. There is now not always the luxury of having a choice.

She would also be expected to sell the house she is in now and pay the rent for the council house from the proceeds of the sale so in that situation there is no difference from private renting and it will still depend on the sale of the house she has now.

What isn't going to happen is that your mum can sign over house to you and then get a council house she will have to sell the one that she is in to move anywhere.

Cakeguts

The thing that bothers me most about the OP in this thread is the word "inheritance." Also the fact that nan wanted her daugher their mother to sign over the house. Nowhere in any of this are the rights of the husband considered. There is probably very little chance that either the OP or the brother will inherit anything from this house it will go to the husband who is the also the carer.

It is possible that part of the idea of signing over the house while the mother is alive is to get it out of the hands of the mother's husband?

Sea_Shell

Sounds like a plan. I'm going to give our £300,000 house to my sister, and go and ask the council for a free one. what do you reckon my chances are folks?

If it were that easy EVERYBODY would be doing it!!!!

Lauralou79

OP people may be being blunt but they are doing so because you aren't taking on board the advice you are being given and becoming frustrated . There are lots of people with lots of different life experiences on these boards and they are very helpful so please take notice!
They are trying to help you blunt or not from making massive errors/decisions that aren't feasible. It is very true that council housing is much much more difficult to get.
If you took your mum to the local council housing officers and told them your plan that she plans to give you her House so she is then homeless, maybe you will listen to them when they say she would be a low priority as she has as an asset and home and is making herself homeless by giving it to you. There are plenty of documentaries on tv where actual homeless people with no assets and dependant kids are housed in b&bs due the lack of housing available. Would you be happy to take mums house in this situation?

It also sounds like the loan is going to mean selling the house regardless if it's still quite large.
Good luck I have a feeling you may need it if you don't take note of what people are trying to help you with.

AdrianC

Cakeguts wrote: »

The thing that bothers me most about the OP in this thread is the word "inheritance." Also the fact that nan wanted her daugher their mother to sign over the house. Nowhere in any of this are the rights of the husband considered. There is probably very little chance that either the OP or the brother will inherit anything from this house it will go to the husband who is the also the carer.

It is possible that part of the idea of signing over the house while the mother is alive is to get it out of the hands of the mother's husband?

One word - "will"...

If the mother dies intestate, then the house will go to the husband. But if she makes a will...

SnooksNJ

Cakeguts wrote: »

The thing that bothers me most about the OP in this thread is the word "inheritance." Also the fact that nan wanted her daugher their mother to sign over the house. Nowhere in any of this are the rights of the husband considered. There is probably very little chance that either the OP or the brother will inherit anything from this house it will go to the husband who is the also the carer.

It is possible that part of the idea of signing over the house while the mother is alive is to get it out of the hands of the mother's husband?

Maybe, but the Nan did it so the Mother thinks she can do it too. The OP's knows people who got council houses right away so maybe in the OP's area they pass out council housing like candy.


Are there any tax implications giving away £60 grand in assets? Because HMRC seems to be an agency who would take your Double Decker, not giving them away.

Cheeky_Monkey

The OP obviously comes from a family of council house blaggers so wants to continue the tradition :mad: