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Passing on Property

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spiremanspireman Forumite
5 posts
MoneySaving Newbie
I have a small house that I bought to supplement my pension. Unfortunately my son lives in the house and is on long term sick leave. He cannot claim benefit as it is a family home. He cannot get a council flat as he has accommodation. I would like to sell the house to help with my living costs but he would then be homeless. I could provide him with the deposit for a mortgage but he can’t afford to pay a mortgage as he is on minimum wage so I would just transfer my costs from a house I own to one I don’t own. I could sign the house over to him but that would not help me.  Is there a way that I can pass the house on to him at a low price so he could afford the mortgage and I could get some equity out of it?

Replies

  • annabanana82annabanana82 Forumite
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    Have you looked at equity release or a lifetime mortgage?
  • gettingtheresometimegettingtheresometime Forumite
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    If you post on the housing board I'm sure there will be someone far more knowledgeable than myself who can help you.

    however for my 2p worth, I believe you can sell it to whoever you like, for whatever price you like but I believe the issue will be if you need care as it may be seen as a deprivation of assets.
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  • Savvy_SueSavvy_Sue Forumite
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    Ditto the housing forum, but there are some circumstances where you can rent your home to a family member. I do not know if this would be one of them. 
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  • lisyloolisyloo Forumite
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    Be careful of deprivation of assets (I'm not suggesting this is deliberate but that you could accidentally fall foul of it).
    You cannot give away your home (or sell at below market value) and then later expect the local authority to provide you with carers at home or free care in a residential or nursing home.
    Property is easily traceable (unlike say smallish gifts or regular small amounts of cash). There is no time limit.
  • Keep_pedallingKeep_pedalling Forumite
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    lisyloo said:
    Be careful of deprivation of assets (I'm not suggesting this is deliberate but that you could accidentally fall foul of it).
    You cannot give away your home (or sell at below market value) and then later expect the local authority to provide you with carers at home or free care in a residential or nursing home.
    Property is easily traceable (unlike say smallish gifts or regular small amounts of cash). There is no time limit.
    This is not the OPs home, it’s an investment property.

    if the idea is to supplement  to your income, why not charge him a rent that he can afford?
  • HampshireHHampshireH Forumite
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    You can still sell.

    You would serve him a notice to take to the council to support housing application.

    Depending on the reasons why he is on long term sick may assist his application. 

    He is an adult and he should be taking some responsibility. 
  • tacpot12tacpot12 Forumite
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    I'm not sure I buy the argument that he can't get a mortgage because he is on minimum wage. National Minimum wage, if you work 37.5 hrs a week, is about £1180 per month after tax and NI. Allowing £150 pcm for council tax, £100 for utility bills, £300 for food, £200 for transport to get to work, that still leaves £430 for rent or mortgage. I pointed out on another thread that in my city if you have £16,000 you have a 30% deposit on a two bedroom flat and the mortgage would be £150 per calendar month.
    The comments I post are my personal opinion. While I try to check everything is correct before posting, I can and do make mistakes, so always check official information sources before relying on my posts.
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