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Council House Purchase

Delilah1916
Delilah1916 Posts: 7 Forumite
edited 2 April 2019 at 6:38PM in House buying, renting & selling
My brother alone decided to purchase our mum's council house in London. He was and still is resident abroad so strictly possibly had no legal right to do so. My sister and I had no knowledge of his actions.
My mum has now gone into care aged 90 and of course, quite rightly, the Council are asking questions about her money and the question of the house [now valued at nearly half a million] came up and she said that he had bought it. I checked with the Land Registry and it says that he purchased in 1988 and Title Absolute 1994 whatever that signifies. As it seems he was not entitled to purchase the house the Council are, of this week, checking things with the Land Registry.
My question is where does it leave my mother? Does she owe 30 years back rent? Do the Council repossess and then sell the house to cover their lost rent and then use it to pay towards mum's care? Is my brother liable to prosecution?
The money is of no interest to my sister and I as we are both comfortably off in our retirements, it is my mother who we are concerned about.
Any advice would be much appreciated. Thank you
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Comments

  • AdrianC
    AdrianC Posts: 42,189 Forumite
    Eighth Anniversary 10,000 Posts Name Dropper
    This is definitely one for paid professional advice.
  • HampshireH
    HampshireH Posts: 5,032 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper
    Interesting.

    The council would have had to authorise the sale etc and would have been expected to do their own due dilligence.

    Have you checked the land registry to confirm he is the owner.

    Or did your mum buy it (with his money) and she transfer it to him after.

    I just cannot see how someone who is ineligble could buy the house.

    Need for info.
  • HampshireH
    HampshireH Posts: 5,032 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper
    Apologies missed the bit where you confirmed LR.

    However she could have transferred it
  • Thank you for the replies. She says that he bought it and he had said that he was living there. It doesn't stack up although the fact that he told my sister not to divulge who owns the house makes me smell a rat. My sister though is all above board with her responses to the Council.
  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Worst case scenario is that the council find/prove that he fraudulantly claimed to be a resident/tenant with entitlement to RTB that he actually did not have.


    Not sure what the fine/prison time would be.


    I assume your mother continued to live there all that time? Even though it is owned by your brother, she may still have a Beneficial Interest in the property, and the concil may include it's value in assessing her asses for purposes of any claim for Care Home costs.


    Both mum and brother may need specialist advice........
  • Yes she lived there for 30 years up until end of 2018 rent free with no rent book etc. although she paid the utility bills. My sister and I just want it sorting legally so that our mum can be settled and stop her worrying. If he has done wrong then he must suffer the consequences.
  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    I doubt 30 years back rent will be the issue.


    She clearly was not a council tenant for that period so owed no rent.



    The issues will be

    * whether she's entitiled to Local Authority care costs (is she claiming these or has she other assets to pay for her care?)
    * whether she has any beneficial interest in the property
    * whether any criminal offence was committed
  • mrschaucer
    mrschaucer Posts: 953 Forumite
    Part of the Furniture 500 Posts Name Dropper
    Sounds like at the very least your brother ought to be coughing up for your mum's care costs!
  • Thank you G_M.
    Trying to sort care costs now which is why the house question has arisen. Forms to fill in were sent to the wrong address for my sister which has delayed matters. Hopefully the Council and the Land Registry can agree on the legality or otherwise of the purchase. I just hope that they do not think that my mum is also liable although she did think that the house was still hers?
    Solicitors must have been involved in 1988 so perhaps they did not do their job properly.
  • Haha mrschaucer he has told my sister that any costs should be shared between the three of us because the house money is his to take abroad less a juicy junk of tax of course.
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