Right to buy / ESA support group

kulu400

   I have been on income support or more recently ESA support group for 20+ years for medical reasons and had a secure council tenancy now for 24 years. I’m not 100% sure if this is correct but I have seen that a family member can give you the funds to take advantage of accessing right to buy. I think I’m eligible for £105k discount. My sister kids in their 30s financially could help me with the lump sum to buy the property. So it would kind of be a win win.
1. I would 100% have secure roof over my head for rest of life. 
2. when I’m longer around they benefit financially from the investment. 

  But basically I’m just wondering would this be likely to effect any ESA support group benefit I receive as obviously entering into a deal like above doesn’t actually effect my day to day living situation. 

calcotti

It will not affect your ESA at all.

You do need to consider the costs of home ownership. As an owner you will need to fund any repairs and maintenance yourself.

If the property is a flat there will likely be service charges which you will still have to pay, you may still be eligible for some housing benefit to help with these depending on what they cover.

peb

I've done a few of these (from a conveyancing point of view).  As well as considering the maintenance of the property consider if the existing property is likely to meet your needs over the next five years.     

The usual way is for you to grant the relative a private mortgage, postponed until your death. 

Obviously you won't get whatever help there is with rent anymore and if you need a different Property you won't be priority.

TELLIT01

If you are gifted the money on the basis that the house will be left to those providing the gift, there could be problems if the OP has to go into care at some point in the future.  The property value could be used towards the cost of care.

peb

@TELLIT01 ,.  This is why a private mortgage is appropriate.  The money put in by the relatives is protected.  Possibly by way of an equity mortgage.  The relative puts in forty percent of the finance required and as such recoups forty per cent on a resale.  

TELLIT01

peb said:

@TELLIT01 ,.  This is why a private mortgage is appropriate.  The money put in by the relatives is protected.  Possibly by way of an equity mortgage.  The relative puts in forty percent of the finance required and as such recoups forty per cent on a resale.  

The OP refers to family members giving them the money, there is no mention of effectively a joint mortgage.  The council may have their own rules on the type of mortgage and who is named on it.  Without constraints, anybody would be able to take out the mortgage potentially totally bypassing the actual tenant.  That is not what the right to buy is designed to do.