Anything stopping me buying parents' council house?

pulliptears

Right to Buy is all well and good if the government gives provision for housing stock to be replenished.

OH works for a housing association who acquired all the council's stock. Its impossible to replace the right to buy properties with the current market.

ioscorpio

Would all the children of parents entitled to RTB, still be as keen to buy the properties for their parents, if the council moved the parents into flats in poor areas so that families in need were moved into their council houses? After all it's the councils that own the houses not the tenant.

SquatNow

Sugarplumfairy wrote: »

We have lived in our council house for approx 30 years. I moved out after approx 18 years and my mum died after approx 20 years. So my dad was in a large house on his own. He decided it was too big for him and decided to move down south. So rather than giving the house back we decided that my dad would get a mortgage and full discount (66% if I remember right, also Scotland) which I would pay and I would move in. So I paid his mortgage for 3 years then the title was transferred to me. I have just sold the house and moving next month. And yes I did make a substantial amount of cash.

To all the others who have judged :

Unethical some may say, but that was his right to buy it. It was also his right to transfer the deed to me.

Maybe so but he didn't have the right to let it out for AT LEAST 3 years. Effectively you broke the law and stole money from the taxpayer.

The cash you "made" isn't yours... it should belong to the taxpayer and I truely hope they catch up with you and throw you in prison as an example to others.

Too many people are asking "could I do this" without ever asking "should I do this".

SquatNow

pulliptears wrote: »

Right to Buy is all well and good if the government gives provision for housing stock to be replenished.

OH works for a housing association who acquired all the council's stock. Its impossible to replace the right to buy properties with the current market.

Only if the government has a way to replenish stock at a discount rate. Which they don't. RTB was launch by the Tories as a bribe to lure labour voters, and most council house occupants were lower class labour voters.

RTB was one of the biggest thefts in british history.

Curv

itsbeef wrote: »

So dont tell other people that they should do exactly what you think they should do.

Mmmmm... loving your inconsistency.

itsbeef wrote: »

Condemning others opinions isnt the way to go on this matter.

There it is again. You can condemn MY opinion, but I can't comment on the OP's? Priceless.

itsbeef wrote: »

Its down to the OP as to make an educated decision on if this issue is possible and practical.

Exactly. And one only becomes educated by listening to a range of views and opinions - including those that don't merely validate your own.

Fred333

Not a big fan of squatters. The just need to get a job like everyone else.

MrShed

Pretty disgusting responses(some of them!) to a perfectly valid query.

Sticking myself among the lions, I sincerely hope you are able to buy it maria to stick it to some of the narrow minded people who have replied. If the government controlled house prices, maybe people would not have to go through these loopholes.

Anyway the point I was going to make was: just to be aware of, as far as I was aware, Capital Gains Tax is payable at the time of transfer to yourself, by your parents, on the difference in price between them purchasing it and subsequently transferring it to you. Although this is further complicated by the fact that it would almost certainly be their PPR(primary principal residence).

Basically, I think the tax issues need to be looked into in a lot of detail.

localhero

Hi Maria,

Your plan to transfer the property to you after 3 years is flawed in; 1) CGT - you would have to pay CGT on the increase in value from the date of the transfer until it's eventually sold; 2) Care fees - as has already been pointed out, the transaction would be disregarded if/when the local authority means test for fees; 3) from your parents point of view, they would be vulnerable if you got divorced or went bankrupt, or if you simply wanted to sell the property.

A way to avoid these pitfalls, is if your parents raise the mortgage themselves, or if they're unable to do that you could act as guarantor or you could lend them the funds.

They should not transfer the house to you - you could place a charge on the property to secure your loan.

They should buy the property as tenants in common and arrange their Wills so that they don't leave their share to the surviving spouse. Then if the surviving spouse requires long term care the house is safeguarded.

Eventually, they could leave the property to you in their Wills and there would be no CGT.

Running_Horse

MrShed wrote: »

If the government controlled house prices, maybe people would not have to go through these loopholes.

That's an interesting concept. You go to the estate agent for a valuation, and along comes a government official and orders you to sell for less. Not exactly a vote winner, but it could work...in a communist country.

Although it could be argued that is what happens with right to buy; council values a property, and government orders them to sell it for less than it is worth, while not letting them replenish the stock for the next generation, thus forcing up demand and prices in the free market.

lynzpower

I had more thoughts on this, and i saw that you had considered paying cash.

Its only 25k. Do you not have savings or investments you can cash in to pay down the cash for it? You simply give your parents the money and they can buy it cash in thier names- then whatever they choose to give you back in the will is up to you and them to negotiate.

IMHO there is very little moneysaving done when you are paying 25 years insterest on only 25k. Just doesnt make financial sense to me.