Buying parents housing association property.

Mojisola

blueball wrote: »

He would be given a standard AST. However as he gets a pension and HB he is never going to be in a position where he can't pay the rent.

He won't get HB if the council believe it's a contrived tenancy.

blueball

tlc678910 wrote: »

As it is your father who has the right to buy (at a huge discount) it would be disgraceful if someone were able to exercise this right on his behalf and then charge the public purse for him to live in it.

If this is allowed we should be writing to our MPs. Just when you thought you had seen it all with right to buy. What an utter P155 take!

Edit: but I assume he would have to be named on the deeds and would not be allowed to claim housing benefit for a home he owns. I hope so!

I don't understand what your issue is. I spoke to the right to buy people and they said the scheme was created specifically so that family members could also benefit from it, children buying their parents RTB is extremely common.

It was them who gave me the idea in the first place as my initial idea was to give my dad the money and then he transfer the deeds to me. They said it's best I just buy it outright so that his name is never on the deeds, thus enabling him to continue to receive HB.

Why would your MP's be concerned? the scheme was created by MP's to help people onto the property ladder.

Cakeguts

blueball wrote: »

I don't understand what your issue is. I spoke to the right to buy people and they said the scheme was created specifically so that family members could also benefit from it, children buying their parents RTB is extremely common.

It was them who gave me the idea in the first place as my initial idea was to give my dad the money and then he transfer the deeds to me. They said it's best I just buy it outright so that his name is never on the deeds, thus enabling him to continue to receive HB.

Why would your MP's be concerned? the scheme was created by MP's to help people onto the property ladder.

It doesn't matter if his name is never on the deeds. What matters is that you are related to him and own the property that you are renting. This will be seen as a contrived tenancy in other words you are letting a property that you own to your father in order to get housing benefit paid to you as rent. This is what is likely to cause him not to get it. So you can only do this if you understand that after you have done it your father may no longer be entitled to claim housing benefit. To prove that this is not a contrived tenancy you would then have to evict him for non payment of rent.



This is another situation where someone is willing to risk a parent being homeless in order to own a house bought with a discount.

blueball

I've already replied to this, housing benefit said to form a limited company and then they wouldn't class it as a family member being the landlord.

blueball

Cakeguts wrote: »

This is another situation where someone is willing to risk a parent being homeless in order to own a house bought with a discount.

There is no risk of him becoming homeless, he has a wealthy extended family in Pakistan that would come to the UK to help him if anything went wrong.

[Deleted User]

Deary me. Whole thing just seems so wrong, as someone who spent time in emergency accommodation and was lucky to get that.

I mean, you can't afford your own property but you can afford your father's HA property with 50% discount. So its removed from the social housing sphere forever. If your father is lucky and nothing goes wrong its turned into flats eventually (so must be quite a large property that a family would be desperate for and has to wait years to get anywhere near the top of the list). All because you can't afford your own property.

Doesn't seem to occur to you to carry on saving, leave your father perfectly happy and safe in his property and then other families can access it in the coming years when he doesn't need it anymore. The lack of social awareness just makes me wonder why this country hasn't already gone to the dogs.

Long before 'MPs' (or was it a single PM who needed Tory voters?) wanted votes and didn't care to forsee the effect the resultant lack of social housing would have on society a few decades later, social housing was seen to be needed. Now its just too late. Millions in poor quality private rentals with rents they can't afford, with the resultant instability that goes along with renting in the private sector. So.., deary me is the only polite way I can put it when I read threads like this. Although there is a chance that with the last few lines you could be just taunting to get a certain response. I hope so.

OK, that's the lecture over.., reading the OP's last post, I think he's trying to get a certain response.., not dissimilar to mine lol. I hope so anyway.

Hoploz

OMG housing benefit to pay rent to the person who has bought the house from social housing at discounted rate?

You couldn't make this stuff up.

Mrs_Imp

Can he actually afford to pay you rent? A quick look using Birmingham as an example with a 3 bed house (big enough to convert into flats) reveals he'd get approx £75 Hb (£98 minus 25% for spare bedrooms) with rent being at least £150/week. If you don't charge market rate it'll be a contrived tenancy and he'll get no help. If you do charge market rate you'll be forcing your father to hand over at least £75 a week to line your pocket, which is likely to be more than he currently pays. Are you happy to be fleecing your father?
What happens if your limited company gets in to financial difficulties? It'll have to sell the house and your father will lose his home.
If you were wanting to do anything other than line your pocket you'd offer to let him live there for free or for a peppercorn rent.
You are giving up your father's security.
If you genuinely want to help your dad then leave him be. He has a home, and he isn't responsible for any repairs. Take him on holiday, go and visit him, take him on days out, but don't take away the security of his home.

midnight_express

A perfect example of why right to buy is so wrong.

haras_nosirrah

Not sure the housing benefit office should be giving out tax advice - a bit like the cashier at tesco giving out pension advice. If setting up a limited company turns out to be the wrong thing to do then can you complain against the 'advisor' that is assuming that this tale isn't a complete fabrication (which I think it probably is)