Getting a house gifted to you

fairydust22

Hi, I am looking for advice please, a family member of mine wishes to pay for a house for me and gift it over, i am not sure how this would work in my circumstances, i am currently a carer  getting carer's allowance and living in a council property getting housing benefit, Am i right in thinking that because i would not be receiving any cash and only the property to live in as my main address i should still be able to claim the benefit and council tax reduction?  

elsien

It wouldn’t affect your benefits if you are living in it, but have you both considered the wider implications?

Both with regards to tax, and the ongoing costs of maintenance etc which are currently covered by your landlord? 

Slithery

Does your relative currently own another property?

If so then it would be much cheaper for them to gift you the money instead and then for you to purchase the property otherwise they'll be paying the additional 3% as well as not being eligible for FTB relief.

Snookie12cat

You are unlikely to get any housing element of universal credit, or housing benefit as you won't have any rent. 
You will however have the maintenance costs to consider. 

p00hsticks

I don't beileve you'd still be eligible for housing benefit if you own the house you are living in - isn;t that to help with rent ?

I'm also not sure about council tax reduction - the effect of you no longer having any rent t o pay might affect the calculation of what yo ucan get ?

fairydust22

elsien said:

It wouldn’t affect your benefits if you are living in it, but have you both considered the wider implications?

Both with regards to tax, and the ongoing costs of maintenance etc which are currently covered by your landlord? 

No i've not thought about tax ? is this the inherintance tax if the person who gives the money dies within 7 years, i know i would need to pay for house insurense that would be a extra cost and if anything went wrong in the house with repairs, my council have a 12 month check on the boiler so i think thats something else i would need to think of as well.

Slithery said:

Does your relative currently own another property?

If so then it would be much cheaper for them to gift you the money instead and then for you to purchase the property otherwise they'll be paying the additional 3% as well as not being eligible for FTB relief.

No they stay in a council property as well, have done for over 40 years, they came into some inheritance money and do not wish to move from the house.

lisyloo

I think you need to clarify if you own or rent the council property as some of the replies appear to relate to second properties.

i am assuming you are currently renting and will give up renting the council property.

tax is just council tax but check the band and cost

expenses of running a home are

water
electricity
gas (or other fuel)
buildings & contents insurance
repairs, servicing & maintenance
phone/broadband
tv licence
satellite or cable tv subscription

you might be paying most of these, but repairs to building/fixtures and buildings insurance are extras that landlords normally pay and not renters. If you are on benefits Do you have the means to pay for a new boiler, fence or roof?
it sounds very generous but you need to make sure it’s not going to be a millstone.

i think you’ll lose your housing benefit as that is to help with your rent.
 
Stamp duty & capital gains would apply if it was a second property.
IHT would fall to the estate I believe but it tapers over the seven years.
if this is being done to avoid care bills then the transaction could be rolled back but they’d need proof e.g. person gives you house after diagnosis.

fairydust22

Snookie12cat said:

You are unlikely to get any housing element of universal credit, or housing benefit as you won't have any rent. 
You will however have the maintenance costs to consider. 

I would only need help with the council tax reduction, as i would own the house so no help would be needed for rent anymore.

theartfullodger

Different benefits have different conditions for income, assets etc etc.  e.g. Even with £1m in the bank & private pensions people still get state pensions (and the other 5 benefits that go with it...)

Check your circumstances against the various options using...
https://www.gov.uk/benefits-calculators

If you don't live in it you would be liable for tax on the rental income, plus likely have to CGT when selling it (a tax I expect to go up to pay for Bre**it etc etc )

lisyloo

fairydust22 said:

Snookie12cat said:

You are unlikely to get any housing element of universal credit, or housing benefit as you won't have any rent. 
You will however have the maintenance costs to consider. 

I would only need help with the council tax reduction, as i would own the house so no help would be needed for rent anymore.

Home owners can certainly get council tax benefit.
i can’t tell you if it’s 100% of the bill.

fairydust22

lisyloo said:

I think you need to clarify if you own or rent the council property as some of the replies appear to relate to second properties.

i am assuming you are currently renting and will give up renting the council property.

tax is just council tax but check the band and cost

expenses of running a home are

water
electricity
gas (or other fuel)
buildings & contents insurance
repairs, servicing & maintenance
phone/broadband
tv licence
satellite or cable tv subscription

you might be paying most of these, but repairs to building/fixtures and buildings insurance are extras that landlords normally pay and not renters.

i think you’ll lose your housing benefit as that is to help with your rent.
 
Stamp duty & capital gains would apply if it was a second property.
IHT would fall to the estate I believe but it tapers over the seven years.
if this is being done to avoid care bills then the transaction could be rolled back but they’d need proof e.g. person gives you house after diagnosis.

I am currently renting a property from my local council, i would be giving the property back to my council once i have my own house, i know i would need to start paying the buildings+ contents insurance every month that would be an extra cost, also any repairs that may pop up aswell.