Mum wants to sign home over to me

rwcwilson

This may well be a non-starter but what is the interest on the current loan? Could she take out a loan/mortgage at a lower rate to reduce her monthly costs? I understand she is on benefits so getting a mortgage would be difficult but are there any specialist companies that provide loans/mortgages in this situation?

warby68

Putting morality to one side, the OP seems convinced giving a house away and getting a council house is viable whatever people say here because rent is being offered. Perhaps the best advice is to go and get that checked out properly with the council decision makers before some unwise decisions are made for mum. Even IF the property isn't given away I'm not sure whether there are any areas left where there isn't a long (possibly unending) wait for something and that something might be pretty awful.

I think OP only really wanted advice on the financial mechanics of how to get himself out of the current house and into the other one when there is hefty debt outstanding on both and not really on the rest of the plan.

I think there really IS still only one plan under consideration and that is the council house/preserved inheritance one.

OP please also remember your mum and stepdad hopefully have a long life still ahead of them and there are many types of benefit where what they did with their assets will matter, not just housing benefit in the here and now.

Cakeguts

SnooksNJ wrote: »

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.

They might give anyone a council house just to get the worst ones in the worst areas let. You wouldn't get a nice one this way.

pjcox2005

It sounds like a non-starter, but just to point out your brother could be losing out.


If he were (potentially not if it went on fees) to get an inheritance on death he'd get the full amount. If the house goes to you now, then any increase in value on the house (assuming he owns a proportion legally) would be subject to capital gains tax as it's not his private residence, plus the fact he doesn't get a benefit from it now which you do.


So whilst you state in the opening post he shouldn't get 50%, there is an argument he should get more as he's worse off than the deal.


Under the current rules it could also impact any future property purchases for him where he has to pay an additional 3% SDLT unless he already owns a home.

Mossfarr

You keep referring to "your Mothers husband" so why does your Mother think she can transfer "her" house to you? Surely your Mothers husband is entitled to half the house anyway?

PeterJones2018

OP - you said your mother has medical problems. Looking through this thread, no one has mentioned Continuing Care Assessment. (Sorry if I've missed it).

Surely if your mother's care needs are classed as medical, rather than social, then there will be no "deprivation of assets" issue?

PeterJones2018

Also, as far as I am aware, sheltered (or retirement) housing may be owned by the council or a housing association. It is allocated according to that person's physical needs. I think if someone lives in their own home, but that home becomes unsuitable, they can still apply for a more suitable home. It's not the same "waiting list" as exists for families with children etc.

Just as elderly home owners often end up going into residential homes, which may be council owned. The council does not say the residential home is only available to previous council tenants. It's completely different priority assessment.

I would speak to Age UK (or a similar charity) if I was you.

PeterJones2018

Cakeguts wrote: »

They might give anyone a council house just to get the worst ones in the worst areas let. You wouldn't get a nice one this way.

I think this is more likely to be about sheltered housing, rather than "hard to let" social housing - which is intended for general families etc.

It will be about the person's suitability, for that particular sheltered complex. It won't be about who owns the house that person is leaving behind.

Now, when it comes to paying for the sheltered housing (ie possible housing benefit) then yes, money and home ownership will obviously be looked at.

But looking at this thread, a lot of posters seem to be confusing benefit entitlement with housing allocation. They are completely separate assessments.

Cakeguts

PeterJones2018 wrote: »

I think this is more likely to be about sheltered housing, rather than "hard to let" social housing - which is intended for general families etc.

It will be about the person's suitability, for that particular sheltered complex. It won't be about who owns the house that person is leaving behind.

Now, when it comes to paying for the sheltered housing (ie possible housing benefit) then yes, money and home ownership will obviously be looked at.

But looking at this thread, a lot of posters seem to be confusing benefit entitlement with housing allocation. They are completely separate assessments.

Nothing to do with benefit as the OPs mother wouldn't need to claim any benefits because she could pay the rent on the council property from the proceeds of the sale of the house she lives in now.

PeterJones2018

Cakeguts wrote: »

Nothing to do with benefit as the OPs mother wouldn't need to claim any benefits because she could pay the rent on the council property from the proceeds of the sale of the house she lives in now.

Yes, that's a factor.

Although not always true. Disability benefits are not all means tested.
So a discussion with Age UK would be sensible.