Owning another property while living in a Housing association?

Murphybear

See it from the councils point of view.  You are in social housing and get your rent paid then suddenly you have a house.  There are 1000s of people who are desperate for social housing.  What do you think the council would do?

As others have said, this is not a good idea. 

JuanBallOfWimbledon

By any chance does your son have a friend in Warrington who gave him this bright idea? Because we know someone who did a very similar thing, and it didn’t end well. Einstein’s parents weren’t council but were renting privately and claiming housing benefit. House was transferred to dad, as disabled mum was claiming most of the MTB’s, with the exception of ESA, which was a joint claim. They pretty quickly lost all means tested benefits, and were told they can only claim housing benefit again once the house had been sold and they’d lived on the proceeds for an allocated amount of time (as they were now the owners of a property they weren’t living in, or renting out). Giving it back would be classed as deprivation of assets, so that wasn’t doable. I don’t know the score long term with their other MTB’s, but nothing good came from it. Well, he does get to spend more time with his parents now since their only option was to move in with him and his new bride. 

*NOTE: this was the brother of my wife’s colleague, the details above are as I understand them. I can tell you for sure though, it wasn’t a happy, easy ending. 

babyblade41

Well I've heard some whacko ideas on these boards but I think this is up there with the most insane one yet 

No, no, no and again no... this is a can of worms you don't want to enter into.

I'm not sure what your son is thinking but I think he needs to give himself a kick as it seems the only one he is thinking about is himself but without the necessary knowledge of how the benefits, tax, marriage , divorce or social care works 

980233

moneyGuruu said:

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?

I love you, will you marry me? But just to be on the safe side I don't trust you as far as I can throw you.

AdrianC

gettingtheresometime said:

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

If the property increases in value during the OP's non-resident ownership, absolutely.

newsgroupmonkey_

The amounts of money we're talking about here, surely it would be better talking to a family lawyer about how to better protect his asset?

I mean, in terms of divorce, I would have thought as this is a non-matrimonial asset (i.e. one gained before the marriage), it wouldn't be included in a financial settlement. I'm no marine biologist though, hence why it might be worth running via a Solicitor.

Skiddaw1

OP, you and your husband would lose all your means-tested benefits. You'd keep your Carers Allowance and he'd keep his PIP but everything else would cease.

Honestly, it's a really, really bad idea. Don't entertain it.

moneyGuruu

Thanks everyone, I’ve read enough here to realise this is a very bad decision. Will not be taking part in this. 

Skiddaw1

Good call @moneyGuruu

Cruncher8934

If he owned the house prior to meeting her, and/or she hasn't invested a penny on the house whether that be mortgage, insurances or maintenance of the house and she doesn't ever so long they are together.  plus he equally contributes to the upbringing and childcare of any of his children ie she doesn't become a stay at home mum, or go part time change career or salary potential at all by having his kids... Then in the event of divorce it won't be considered a marital asset.

However if she gives up her financial independence to raise his kids or she's paying half of the cost of the new kitchen or loft conversion etc then she absolutely deserves a percentage. And your son shouldn't marry her if he doesn't love her enough to want to do that.