Leaving Right To Buy property to children within 5 years of purchase

CharlieC2210

Hello. I bought my property through the Right to Buy scheme earlier this year. I received a discount on the property but would have to repay this if I sold the property within 1 year of the purchase. I would have to repay 80% of the discount if I sold it within 2 years. And 60% If I sold within 2 years. And so on, and so forth, up until after 5 years where I wouldn’t have to repay any of the discount.

I’m now writing my will. I’m leaving the property to my children. If I die within 5 years of buying the property, and my children sell the inherited property within 5 years of me having bought the property, would they have to repay the relevant percentage of the discount?

ReadingTim

Shelter's website suggests so.... 

"the new owners of the property may have to repay all or some of the discount if they sell the property within the original relevant period, and may have to offer a right of first refusal to the local authority."

dimbo61

So enjoy a long and healthy  next 5 years at least !

CharlieC2210

ReadingTim said:

Shelter's website suggests so.... 

"the new owners of the property may have to repay all or some of the discount if they sell the property within the original relevant period, and may have to offer a right of first refusal to the local authority."

Thanks, Tim. I followed your link and got,

"When the discount does not have to be repaid;

- The discount does not have to be repaid if the property is:

- disposed under a will or on intestacy"

Who are the 'new owners' in your quote, and which section of the website is the quote from?

I tried the govt. website by the way but it's not on there.

CharlieC2210

dimbo61 said:

So enjoy a long and healthy  next 5 years at least !

Cheers, 61, I'll give it a go.

user1977

CharlieC2210 said:

ReadingTim said:

Shelter's website suggests so.... 

"the new owners of the property may have to repay all or some of the discount if they sell the property within the original relevant period, and may have to offer a right of first refusal to the local authority."

Thanks, Tim. I followed your link and got,

"When the discount does not have to be repaid;

- The discount does not have to be repaid if the property is:

- disposed under a will or on intestacy"

Yes, so passing it to your children doesn't trigger a need to repay it. But if they sell it, then it will need to be repaid.

ReadingTim

CharlieC2210 said:

ReadingTim said:

Shelter's website suggests so.... 

"the new owners of the property may have to repay all or some of the discount if they sell the property within the original relevant period, and may have to offer a right of first refusal to the local authority."

Thanks, Tim. I followed your link and got,

"When the discount does not have to be repaid;

- The discount does not have to be repaid if the property is:

- disposed under a will or on intestacy"

Who are the 'new owners' in your quote, and which section of the website is the quote from?

I tried the govt. website by the way but it's not on there.

It's literally the bit underneath the bullet points in that section.  I omitted the word "However" which begins the sentence. 

I assumed that your children would inherit the property, therefore they would be the new owners.  Is that what you intend?  Or do you assume that the property is sold, and they each inherit a share of the money (plus whatever other assets comprise the estate)?  If that's the case, then the new owners would be whoever buys the place, rather than your estate, or your children. 

Suggest you explore this with the solicitor who's helping you draw up your will - and if you're not using one, consider this an example of why you should!  

CharlieC2210

user1977 said:

CharlieC2210 said:

ReadingTim said:

Shelter's website suggests so.... 

"the new owners of the property may have to repay all or some of the discount if they sell the property within the original relevant period, and may have to offer a right of first refusal to the local authority."

Thanks, Tim. I followed your link and got,

"When the discount does not have to be repaid;

- The discount does not have to be repaid if the property is:

- disposed under a will or on intestacy"

Yes, so passing it to your children doesn't trigger a need to repay it. But if they sell it, then it will need to be repaid.

Ah, I see what you mean. Thanks.

CharlieC2210

ReadingTim said:

CharlieC2210 said:

ReadingTim said:

Shelter's website suggests so.... 

"the new owners of the property may have to repay all or some of the discount if they sell the property within the original relevant period, and may have to offer a right of first refusal to the local authority."

Thanks, Tim. I followed your link and got,

"When the discount does not have to be repaid;

- The discount does not have to be repaid if the property is:

- disposed under a will or on intestacy"

Who are the 'new owners' in your quote, and which section of the website is the quote from?

I tried the govt. website by the way but it's not on there.

It's literally the bit underneath the bullet points in that section.  I omitted the word "However" which begins the sentence. 

I assumed that your children would inherit the property, therefore they would be the new owners.  Is that what you intend?  Or do you assume that the property is sold, and they each inherit a share of the money (plus whatever other assets comprise the estate)?  If that's the case, then the new owners would be whoever buys the place, rather than your estate, or your children. 

Suggest you explore this with the solicitor who's helping you draw up your will - and if you're not using one, consider this an example of why you should!  

Thanks, Tim. And yes, my children will inherit the property. And thanks, I will explore it with my solicitor. I just want to make everything as clear as possible for those I leave behind.