parents buying while on state pension

km1500

To answer your question - the State Pension is not means tested. 

The best way of proceeding (assuming I have read your post correctly) is for you to give the 40k they will need direct to the solicitor they will be using for the purchase ie not to them.

SavingPennies_2

ThisIsWeird said:

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Does that sum up what this thread is about; how to get a cheap house for which you have no entitlement, by manipulating a system which was never intended for this purpose, and for which the tax payer will pay the balance?

Is this an ethical move? 

From previous posts the OP seems quite comfortable and adept at making the most of the benefits system.

bobster2

alisonnpaul said:

so mum and dad are 78ish we discussed their potential "right to buy my council house" they would get the 70% max discount on there south tyneside council rental valued around the 120k mark so roughly a 80k discount how do they go about it without it affecting there state pension both are disabled with council wet room and stair lift put in for them there main concern is the benefits office stopping there money as they would have more than 6000 in the bank both are of sound mind so don't expect to be put in a care home within the next 15-20 yrs i'm aware the government stop your money if you have more than 16k in the bank but not sure if it affects a pensioner as they no longer pay tax the family have talked about this as an inheritance gain i believe they need 5 yrs from purchase before the council lose there right to buy back on selling which would be the idea on the inevitable happening if there not allowed to have the money in the bank to buy can the kids get a mortgage all 4 of us could pay for them 

Given how you've described their situation - unfortunately I think they should plan on the basis that it is in fact very likely that one or both of them will need residential care at some point in the not too distant future. Surely the top priority should be to ensure that they are comfortable and well cared for?

If all the children want to club together and gift the parents £40k so the parents can buy the house of course they can - but the house will belong to the parents. After the first parent dies - the local council may then force the sale of the house to fund care for the surviving parent.

ayupmeduck

At least they are being honest with their intentions

mi-key

ayupmeduck said:

At least they are being honest with their intentions

Even if they are very dubious to say the least !

I can't see any benefit to the parents of owning the house anyway. It's a council house so as long as the rent is paid they can stay there as long as they want. Plus any work or repairs need doing, they don't have to pay for. If one does pass away and they can't manage the house anymore, they can swap for a small council flat etc...

It seems the only person who would benefit would be the OP, and that is only financially !

Quite apart from the problems with RTB and the shortage of council housing because of it, the idea of social housing isn't that you make a profit out of it

ThisIsWeird

km1500 said:

To answer your question - the State Pension is not means tested. 

The best way of proceeding (assuming I have read your post correctly) is for you to give the 40k they will need direct to the solicitor they will be using for the purchase ie not to them.

And this generous move should be done on the basis that the house is the parent's, remains so, serves out their needs, and then provides a financial means to assist with their care if required - say to help with private care, if it's better for them.

The generous offspring should have no claim or entitlement whatsoever.

The only potentially ethical angle to this is if the offspring move in to the house when needed to provide most of this care themselves, for as long as possible. They may then have 'earned' whatever they may get. But only after the house has served its full purpose for the parents.

SusieT

It would be interesting to see how many fewer elderly people who have helpful families would still buy their homes at a late stage in their life if they were some sort of compulsory requirement that the local authority had to buy it back at their death with the same % discount as when it had been purchased, or, for the same % of the sale price to be paid to the LA. Would be a win for the housing shortage even if the properties had gone up in value.

theartfullodger

I got a mortgage when in my 60s a few years ago, running until my age 80.

Speak to a few brokers....

Who pays for the discount please?

Robin9

Flugelhorn said:

who will pay for repairs on the house when they buy it?

I agree -  OP your parents have had a lifetime of their house being looked after - all they had had to do is pick up the phone.  Problems with the boiler, outside needs painting, fence repairing ............    Do they really want the hassle of finding their own contractors

Stay in that rented and the council will rehouse to a flat or sheltered accommodation

Keep_pedalling

theartfullodger said:

I got a mortgage when in my 60s a few years ago, running until my age 80.

Speak to a few brokers....

Who pays for the discount please?

We pay for the discount through our council tax.