Owning another property while living in a Housing association?

moneyGuruu

Woah!!....did not expect to get so much feedback. Thank you everyone!

To answer some of the concerns, I am not disabled, my husband is. I am not receiving any means tested benefits. I only receive care allowance as I look after my beloved husband. My Husband receives all of the means tested benefits including disability and housing benefit. As the property would be in my name, would it be correct that benefits my husband receives will not be effected?

With regards to prenup, it is my understanding that they are not legally binding in the UK. The property is also mortgage free so he would simply transfer it to me. The plan would be after a few years I transfer it back to him simply (His words). Of course he is my son who I love to death so there's no question of me not doing so when the time comes.

Of course, reading all the concerns raised here, I'll have a good hard talk with my son to see if this is what he really wants and the possible consequences. 

elsien

My understanding is that it would stop your husband’s means tested benefits because your finances are assessed as a couple. 

And of course any tax implications of just passing properties back and fore. 

Does his future wife realise that he’s planning to do this? So if they did get divorced after a 20 year marriage (for example) she’d potentially be left without the means to keep a roof over her head? 

p00hsticks

moneyGuruu said:

To answer some of the concerns, I am not disabled, my husband is. I am not receiving any means tested benefits. I only receive care allowance as I look after my beloved husband. My Husband receives all of the means tested benefits including disability and housing benefit. As the property would be in my name, would it be correct that benefits my husband receives will not be effected?

I was under the impression that where couples are married or are 'living together as man and wife' then any means tested benefits are determined based on the circumstances of both of them together.  So you suddenly owning a house would affect his mean tested benefits, especially when you are claiming housing benefit for a different property and not getting paid any rent for the one you are not living in - but you may be better asking on the benefits board.

McKneff

You have to remember that it's irrelevant who gets the benefits in some cases and it is household income that is  is calculated when they are making sone decisions. 
It makes me wonder what his fiance is thinking about all this. I don't think I would be sticking around

AdrianC

moneyGuruu said:

To answer some of the concerns, I am not disabled, my husband is. I am not receiving any means tested benefits. I only receive care allowance as I look after my beloved husband. My Husband receives all of the means tested benefits including disability and housing benefit. As the property would be in my name, would it be correct that benefits my husband receives will not be effected?

AIUI - and this is one that's better on the benefits board... https://forums.moneysavingexpert.com/categories/benefits-tax-credits

Means-tested benefits such as "housing benefit" (I presume actually universal credit?) allow max £16k in household assets, which would include property other than your own home.

So, yes, absolutely a £180k property that you don't live in would disqualify you from the local authority paying your rent.

Whether it would directly affect your own tenancy depends on your housing association.

user1977

McKneff said:

It makes me wonder what his fiance is thinking about all this. I don't think I would be sticking around

Indeed.
"Looking forward to the wedding, my dear?"
"Yes love. I'm just divesting myself of all of my assets in preparation for the divorce. Oh, my mum's going to be our landlady."

user1977

moneyGuruu said:

The plan would be after a few years I transfer it back to him simply (His words). Of course he is my son who I love to death so there's no question of me not doing so when the time comes. 

After a few years of what - marriage? Isn't that the point when a divorce is more likely to happen? Or does he mean a few years after the divorce?

doodling

Hi,

Given your son's  paranoia about marriage, does he understand that he is giving you and your husband £180k - will he be upset if your husband divorces you and takes his £90k share?

What if you get into debt and your creditors force the sale of the house - normally creditors have difficulty forcing house sales because the courts don't like making people homeless but in this case it isn't your home...

gettingtheresometime

Won't the OP be potentially facing a CGT bill on the transfer back to the son?

MaryNB

moneyGuruu said:

Woah!!....did not expect to get so much feedback. Thank you everyone!

To answer some of the concerns, I am not disabled, my husband is. I am not receiving any means tested benefits. I only receive care allowance as I look after my beloved husband. My Husband receives all of the means tested benefits including disability and housing benefit. As the property would be in my name, would it be correct that benefits my husband receives will not be effected?

With regards to prenup, it is my understanding that they are not legally binding in the UK. The property is also mortgage free so he would simply transfer it to me. The plan would be after a few years I transfer it back to him simply (His words). Of course he is my son who I love to death so there's no question of me not doing so when the time comes.

Of course, reading all the concerns raised here, I'll have a good hard talk with my son to see if this is what he really wants and the possible consequences. 

They're not legally enforceable but they can still hold weight in divorce proceedings.