Owning another property while living in a Housing association?

moneyGuruu

Hi all,

Me and my husband live in a housing association house with our rent fully paid by the council. We also claim disability benefits as my husband has health issues and I look after him full time. We have a secure tenancy since 2009. My son is about to get married soon, he owns a house which he would like to transfer into my name because he is paranoid about protecting himself from divorce. My question is, if I do transfer the house to my name, how would that effect me? The property is worth around £180K. My son and his family will live there and won't pay rent or anything of course, it is still there house just will be in my name. Is there a chance I could lose our council house or our benefits be reduced because of this? Is this something we have to disclose to the council?

elsien

It would stop you from receiving any means tested benefits because you would need to declare it as an asset that you own.

If you needed care in the future it would count as an asset in any financial assessment and would need to be sold or rented. 

It would not be his house in your name. It would be your house that you could sell out from underneath him any time you wanted or needed to. 

If you and your husband got divorced the house would be a marital asset and would need to be sold to give your husband his share. 

It is a terrible idea, and does beg the question as to whether your son should be getting married if that’s his attitude. 

Owleyes00

I think you absolutely would have to disclose to the council but I couldn’t weigh in on the benefits/council tax situation.

What I would be more worried about is how your son proposes to “transfer the property to your name”. Does he own the property outright and is therefore able to gift it to you? Or are you proposing to get a mortgage and buy the property from your son? Will the mortgage lender allow you to rent the property to your family?

Notwithstanding the myriad issues there, how does your son propose he gets the property back? You say you are disabled so it would not be an unreasonable assumption that you may need care in the future. If this house was yours it may have to be sold to pay for care costs.

So many issues here. If he is that worried he should just get a prenup would be a lot less hassle.

deannagone

The OP is not disabled, her husband is.

another_casualty

Can of worms would be open . Lid will be broken . Do not even consider it . 

Pre nuptial for son and his other half perhaps . 

user1977

moneyGuruu said:

My son is about to get married soon, he owns a house which he would like to transfer into my name because he is paranoid about protecting himself from divorce.

He needs to sort out his paranoia then, rather than get you involved with all this hassle.

AFF8879

Why don’t your son and his partner just enter into a prenup agreement if there’s that much mistrust between them? Would be a lot clearer and easier (especially on you and your husband).

Marvel1

Your son should break up with his partner and be single.

AdrianC

moneyGuruu said:

My son is about to get married soon, he owns a house which he would like to transfer into my name because he is paranoid about protecting himself from divorce.

There's some daft ideas along these lines - mostly parents saddling their offspring with houses in the fond belief it'll somehow "protect their inheritance"...

But this? This is a corker...

If he's so paranoid about divorce, WHY is he getting married in the first place?

it is still there house just will be in my name

Pause and repeat that to yourself until it sinks in.

If it's "in your name", it is YOUR house, not theirs. You own it. It is your £180k asset. He has given you a £180k gift. 

I presume he has no mortgage, of course, because the lender will not allow this stupidity...

Oh, and if he spends so much as a single penny of his money on maintenance, he is your tenant and you are his landlord. With all the legal rights and responsibilities implied therein...

Any decent divorce lawyer will rip this pretence apart in seconds flat, btw.

Keep_pedalling

AFF8879 said:

Why don’t your son and his partner just enter into a prenup agreement if there’s that much mistrust between them? Would be a lot clearer and easier (especially on you and your husband).

A prenup means BA a few years down the line and there are children to be considered. Frankly the OPs son should not even consider marrying with his current way of thinking.

Edit, just reread the opening post and it seams he already has children as he is going to live there with his family.

Sunsaru

In terms of bright ideas I think this is up there with invading Afghanistan.

Seemed a good idea at the time.....