Council house purchase for my parents

Chandler85

Clearly not a sentimental purchase, since it will be bought at a discount (for the current occupier) then immediately signed over to someone else...  You'd lose the discount anyway and rightly.  If you gave her the money and she bought it, then needed care, you would also chance losing your money to care costs...

Your mother won't be forced to leave her home, especially if she has lived there 44 years.  She might get asked what she intends to do, but she can just say she intends to stay there until she no longer can.  There is no need to buy the house to help her, you'll actually mean she (or you since this is really for you) will then be responsible for all the repairs as well.  Current she has reduced rent, free repairs, and a secure tenancy, the council housing is doing what it is designed to do and she should continue to enjoy it.

TheJP

Regardless of what your intentions are you need to think very clearly and carefully of different scenarios. 

• The house may not be eligible for RTB
• If you are using a mortgage to fund then it would need to be a BTL mortgage with your parents being tenants and you their landlord
• If you have the cash and gift them the money to buy the house your capital is at risk should either of them need care
• If you are wanting the house to be in your name i doubt the council will agree to the RTB discount or to the sale

If it were my parents i wouldn't interfere, if your father does pass soon and the council want to rehouse your mother there will be a valid reason based on other families needs for that size of house. That's how social housing works.

Indigo_and_Violet

Have you asked the council for a copy of the policy for what happens in these situations? There will be one and it should guide their actions. Seeing it will give you an idea of how worried you might need to be that your mother would be forced to accept a move (my expectation is that it would be very unlikely, but given the massive demand for social housing some councils have started to be more strict these days). 

I also wonder if it might be useful for you to take a more measured approach to the house. If they've been there 44 years it will also be the house you grew up in so I understand you will feel attached to it. However, just because it's been the right place for 44 years doesn't mean it will be the right place in the future if your mother is living solo with failing health. If it comes to it, it might help her come to terms with moving if you have been able to lay the groundwork in terms of framing the house as only bricks and mortar when what's important is the lovely memories and the community nearby.

AskAsk

the council won't allow you to buy the property unless you live there yourself.  they can even stipulate that the money can not be a gift and the buyer must have a minimum income of xxxx.

council properties are sold at a discount so they don't want people taking advantage of this by using council tenants to buy the properties.

she will not lose her home when your dad passes away as the council does not evict anyone because their partner has died as that would make headline news!  she will be able to continue living there after your dad has passed away.

TBagpuss

I assume that your mum and dad are both on the tenancy now? If not, then check out with the council what needs to be done to add your mum, or her rights of succession to the tenancy.

She won't have to leave if your dad dies. As I recall, the bedroom tax doesn't apply to pensioners and in any event the requirements for a single person and a couple are both seen as 1 bedroom, so her position won't have changed (although her income may fall as a single person to less than they had as a couple) 

It probably makes more sense for you to reassure your mum that she wont be forced out of her home, and that way, she will continue to have the security she has a long term council tenant, and the council will continue to be responsible for maintaining the property. Plus, while she doesn't want to move,  if thigs change and she subsequently needs  adaptations or to move to supported living, those things may well be easier if she is still a council tenant and can apply to transfer or exchange her tenancy,.

As others have said, she can't buy the house with your money and transfer it to you. That would trigger her having to repay the discount , and would also potentially be a deprivation of assets which would effect her benefits and any care costs she may later have.

You might be able to lend her the money, and have a proper legal charge secured against the property to safeguard that debt, (you would then be her mortgage lender) but that still leaves her vulnerable if you fell out with her, or if you died, became bankrupt or divorced and therefore the debt had to be repaid. 

She would need to be able to afford to pay for any maintenance , repairs or adaptations she might need to the house, and it sounds from what you have said that she has low income and no capital, so how are these costs going to be met? 

If you do want to try to go forward with anything of this kind you would need to be able to fund the purchase without a mortgage (as of course you can't get a mortgage over the property as you don't own it, and she almost certainly cant due to her age and income. I don't know whether she would be able to get an equity release mortgage but I don't see that it would benefit her to do so) and you and she would both need to get separate and independent legal advice. It seems unlikely that it would be in her interests to try to cope with this while she is grieving.

Why not fo the research with the council so you can reassure her , and your dad, that she won't be forced to move, and then both of you focus on making the most of the time your dad has left.

By all means, encourage your mum to think about giving you 9and/or any siblings) Power of Attorney so you can manage her affairs if she loses capacity, and can help her (if she wants) by dealing with third parties in the mean time. 

eddddy

TBagpuss said:

You might be able to lend her the money, and have a proper legal charge secured against the property to safeguard that debt, (you would then be her mortgage lender) but that still leaves her vulnerable if you fell out with her, or if you died, became bankrupt or divorced and therefore the debt had to be repaid. 
. 

I'd agree that a loan seems like a better option - but presumably the loan terms would be that it's repayable when the mother dies or the mother sells her house (e.g. to cover care costs).

There'd be no need to add terms to the agreement that it must be repaid if the OP falls out, dies, becomes bankrupt or divorces.

csgohan4

I suspect the fear is leaving the home to go to a nursing home if she can no longer cope with being cared for at home. Even four times a day carers for some people is not enough and they have some complex needs. Live in carers may be an option but not always available. 

Tread carefully with RTB for the wrong reasons. What is the fundamental reason for buying? Sentimental or financial? of which both are not a good thing for the Mother, losing secured tenancy

Repair bills in ex council houses and leasehold assuming, are not cheap

https://forums.moneysavingexpert.com/discussion/5789909/new-roof/p1

GaleSF63

Is your mother's fear of being forced to leave the only reason you are considering buying it? Be honest with yourself. 
If it is, then contact the council and you may be able to clear that up immediately and she will have one less worry, instead of speculating on what might happen. 

hannahcolobus

Agree with posters above who’ve suggested having a chat with the HA about it and getting some info to put your worried mums mind at ease. 

I worked for a housing trust in the past and they didn’t chuck anyone out just because someone had died. If they could do that then they’d do it all the time! It is in their interests to help support your mum and evicting someone is not something they would consider. Quite aside from the fact it costs them so much money to go down this route! I saw situations like this all the time and generally as a parent was ageing, the family members would always comment on how much less stressful it was knowing their parent was living in a property where they didn’t have to worry about maintenance costs for the house etc.

I’m worried you might come to regret spending the last few months of your dads life expending lots of your your energy (and money) trying to buy the house. Honestly, have a chat with the HA and I’m sure they will be able to reassure you and help you feel better at what I’m sure is a very stressful time for you all.