Complex Right To By / Ownership Situation

c00k1e316

Looking for some advice on a complex home ownership situation.

My mother and I lived in our council house for 25 years (since I was 5 years old) - I bought the house under right to buy.

Both our names are on the title deed - the council said this had to be the case as my mother was the tenant and I was living with her as her child.

The agreement states that if we sold the house in 5 years after the purchase, we would have to payback the discount. I bought it 2 years ago.

My mam is now living with my gran as her full time carer and as the house is mine, we'd both like to take her name off the title deed.

The government website states:

You’ll have to pay back some or all of the discount you got if you sell your Right to Buy home within 5 years of buying it.

You’ll have to pay back all of the discount if you sell within the first year. After that, the total amount you pay back reduces to:

80% of the discount in the second year
60% of the discount in the third year
40% of the discount in the fourth year
20% of the discount in the fifth year
The amount you pay back depends on the value of your home when you sell it.

You may not have to pay back the discount if you transfer ownership of your home to a member of your family. You’ll need to agree this first with your landlord and then get a solicitor to do this for you.

Would there be any implication of having her name removed from the deeds? I know we would have to go through a solicitor and submit the documents to the land registry but as no cash sale is taking place and no one new is taking on the house? Im not sure its technically even a transfer of ownership as im already named on the deeds and we simply want to remove Mam? I'd like to think she could be removed without consequence?

Any advice would be greatly appreciated!

Thanks

Ben

dimbo61

Well you need to ask the council.
If your mum needs care herself in the future the council may look at deprivation of assets
You need a solicitor to read the documents you and mum signed 2 years ago.
The mortgage lender will also need to agree to mum coming off the mortgage and deeds.

c00k1e316

Thanks, There is no mortgage - I paid for the property in full at time of purchase.

McKneff

Surely, legally, your mother actually owns half the house, whether you paid for it or not.
As above, deprivation of assets could rear its head in the future for you both

c00k1e316

I’m not sure that would be an issue - she’s a healthy 58 year old and see below from Age UK site?

What if I gave my money or home away a long time ago?

The timing is important. The council will look at when you reduced your assets and see if, at the time, you could reasonably expect that you would need care and support. The local authority must decide based on all the case facts and clear reasons, which could be challenged.

If you were fit and healthy, and could not have imagined needing care and support at the time, then it may not count as deprivation of assets.

Cakeguts

The house isn't yours. The house is owned jointly between you and your mother. The fact that you paid for it doesn't change that ownership. You knew that your mother would own half the house when you bought it because this is what the council told you were the rules for the Right to Buy. Your mother had to own it with you because she was the tenant with the Right to Buy. You could not buy it on your own. What this means is that you gave your mother the money to buy her half when you paid for the whole house. If you hadn't given her the money to buy her half you would not have been able to use Right to Buy.



You cannot take that money back by just taking her name off the deeds. She will still own that money and that is where deprivation of assets comes in. If she needs care in the future that money will be expected to be used to pay for it.



This is not just a case of your mother owning this money it is also the case that if she doesn't own any part of this house she could become homeless. Just as your mother might need to pay for care so her mother might need to as well and if your gran owns her house and that has to be sold to pay for care where will your mother live?



You knew when you bought this house that it was going to be in joint ownership. It is possible that your mother hasn't thought this through properly and hasn't thought about what will happen if you gran has to go into long term care. It is also possible that you mistakenly think that you own the whole house because you paid for it.

Cakeguts

c00k1e316 wrote: »

I’m not sure that would be an issue - she’s a healthy 58 year old and see below from Age UK site?

What if I gave my money or home away a long time ago?

The timing is important. The council will look at when you reduced your assets and see if, at the time, you could reasonably expect that you would need care and support. The local authority must decide based on all the case facts and clear reasons, which could be challenged.

If you were fit and healthy, and could not have imagined needing care and support at the time, then it may not count as deprivation of assets.

I knew that you and your mother wouldn't have thought this through properly.



What happens if your gran needs long term care and her house has to be sold to pay for it? Where will your mother live then? This isn't just about you and what you want. As you say she is 58. Where will she live if your gran's house has to be sold?

c00k1e316

I really think you should perhaps keep what you think you know to yourself - it’s a little condescending. My mother was never in a position to purchase the house and would have been paying rent the rest of her life - she will never be without a home for as long as she lives and I’d appreciate if you kept your moral opinions out of the situation.

The question I asked was, can we transfer the equity in the house before the 5 year discount limit seen as it’s not a sale and I’m already joint owner.

If anyone could give me a steer on the question I’d be really grateful for the help ����

-taff

c00k1e316 wrote: »

I really think you should perhaps keep what you think you know to yourself - it’s a little condescending. My mother was never in a position to purchase the house and would have been paying rent the rest of her life

That doesn't matter. As above, just because you paid for it, it doesn't mean you own it in it's entirety. It;s half and half. And you got a knock down bargain of a house which you may think you did purely for altruism, but ther people do not. That's not going to change no matter how offended you get about it.

c00k1e316 wrote: »

The question I asked was, can we transfer the equity in the house before the 5 year discount limit seen as it’s not a sale and I’m already joint owner.

As you've already quoted this, you know as much as we do.


You may not have to pay back the discount if you transfer ownership of your home to a member of your family. You’ll need to agree this first with your landlord and then get a solicitor to do this for you.


See a solicitor.

PersianCatLady

Why exactly do you want to get your mother's name off of the deeds?

PersianCatLady

c00k1e316 wrote: »

I really think you should perhaps keep what you think you know to yourself - it’s a little condescending. My mother was never in a position to purchase the house and would have been paying rent the rest of her life - she will never be without a home for as long as she lives and I’d appreciate if you kept your moral opinions out of the situation.

The question I asked was, can we transfer the equity in the house before the 5 year discount limit seen as it’s not a sale and I’m already joint owner.

If anyone could give me a steer on the question I’d be really grateful for the help ����

How rude are you?

@Cakeguts was simply trying to illustrate a point about the bigger picture in this situation and you were really rude just because you took his / her advice the wrong way.

Why did you take their advice the wrong way?

You seem awfully defensive about something.