Elderly person buying council house

flaneurs_lobster

GDB2222 said:

I’m surprised that they can’t come up with a way to make £100k.  

Setting aside the fact that you don't define who "they" are, could I suggest that being unable to "come up with a way to make £100k"  is not exactly an unusual situation amongst the majority of the population. 

And why £100k? 

eddddy

flaneurs_lobster said:

And why £100k? 

Because the OP said:

Chattykathyblueblue said:

House has been valued at £165K and she could have it for £62K.

But some of the discount would have to be repaid if it was sold within 5 years.

flaneurs_lobster said:

Really? Maybe my family is abnormal but wouldn't be able to agree how to split the cost of a meal for 5 at a Toby Carvery let alone lending someone £12k each.

On the other hand, you might get the situation where everyone is queuing up to lend £12k - in return for a piece of the £100k profit (secured by a charge).

And then putting pressure on the home owner to sell after 5 years.

And the grandson potentially getting no part of the profit.

BungalowBel

If the grandson can raise the money, he can pay for the house, but it would have to be in his Grandma's name, and remain in her name for several years, as she is the one with the RTB.

itsthelittlethings

flaneurs_lobster said:

eddddy said:

Just to add - I'm not aware of any legislation (or rules) that say family members (and/or others) can't lend a tenant the money to exercise a Right to Buy.  Unless anyone else knows different.

So I imagine that, for example, 5 family members or friends could lend her £12.2k each, and each put a charge on the house.

Really? Maybe my family is abnormal but wouldn't be able to agree how to split the cost of a meal for 5 at a Toby Carvery let alone lending someone £12k each.

Most of my family would not be able to happily rustle up £12,000.

Chattykathyblueblue

It would be far too much of a gamble for the rest of the family to come up with £62k between us for all the issues outlined above. The grandson can't fund it himself. It's a shame but can't be helped. 

Marmaduke123

Try to look at the positive side. When the lady dies, or has to go into a care home, the council house will be available for another family in need of housing to rent. Also it is likely that the lady will be fully funded if a care home is necessary, rather than the family having to wrestle with the complications of selling the house to pay the care home fees.

maman

Thank you for your helpful post @Marmaduke123.

Although OP says the grandson has been good to the elderly person, they don't say he lives with his grandma. It's my understanding that he (and any other family members who contributed) would have to be a resident.

So, if I'm right and she lives alone, the various scenarios aren't allowed. 

theartfullodger

Grandson gives ( GIVES ! ) her £62k , then trusts she buys it & does leave it to him. (Where will he raise that from?? )

She is entitled to leave it to whoever she likes - eg Battersea dog's home..

silvercar

If Grandson can raise the money, he could put a charge on the property to protect his investment. He could charge interest that is only payable when the property is sold.