Right To Buy and elderly relative

pollocmc

I'm being encouraged by an elderly relative of mine to fund her purchase of her council house flat. Effectively so that I've got a roof over my head now that my wife has left me!

The worry I have about this is 2 fold.

1. She pegs it (as she puts it!) while some of the discount has to be repaid (3 years I think)
2. She has to go into a home and they make her sell it to fund care when I in effect funded the purchase.

My soon to be ex father-in-law managed to get away with 2 somehow (officially I think) but I don't know how the house was transferred in to his name and would that be seen as being some sort of avoidance scheme.

This is part of my life plan to get myself back on my feet after a pretty traumatic 3 months so any help would be appreciated.

pollocmc

Conrad

pollocmc wrote:

I'm being encouraged by an elderly relative of mine to fund her purchase of her council house flat. Effectively so that I've got a roof over my head now that my wife has left me!

The worry I have about this is 2 fold.

1. She pegs it (as she puts it!) while some of the discount has to be repaid (3 years I think)
2. She has to go into a home and they make her sell it to fund care when I in effect funded the purchase.

My soon to be ex father-in-law managed to get away with 2 somehow (officially I think) but I don't know how the house was transferred in to his name and would that be seen as being some sort of avoidance scheme.

This is part of my life plan to get myself back on my feet after a pretty traumatic 3 months so any help would be appreciated.

pollocmc

I arranged a RTB for a son living in his elderly fathers property. The RTB agreement had to remain in the fathers name only which made it awkward but the case did suceed.
You will find it very difficult to get answers to your 2 questions. In the end the Local authority may have the final say but I very much doubt you will get written unequivocal and satisfactory answers from them up - front.

It might be a case of 'suck it and see' Im afraid. A good Lawyer might help you draw - up a suitable will which may go some way toward seeking to protect your interests.

The mortgage may prove difficult to arrange. A typical high street lender is unlikely to be of help, but they may accept an applicaion initially only to decline it some time later once thier legal eagles get hold of the facts (normally not done until the end).

pollocmc

Thanks for that.

Some more info, we're talking about £15K for a £50K house. I should have that in cash due to my unexpected (and unwanted marital windfall) so funding it is not a problem per se. I don't even have too many worries about wills etc. I don't expect my family to stitch me up in this as they know what I've been through.

My concern was over the council forcing sale to pay for residential care in the future.

Could I effectively loan my relative the money and charge them interest on it (without necessarily collecting and allowing it to compound) so that effectively, I'd need paid off after any sale first?


I also see that the discount is repayable for 5 years now. So I'd be accumulating 20% of 70% discount per year?

Thanks again,

pollocmc

margaretclare

Hi pollocmc

A large number of people are worried about this possibility, which they see as a probability - that the council will seize their home if (or as they put it, when) they need permanent long-term residential care.

It's worth remembering that only about 25% of people end their days in residential care. The remaining 75% manage to live at home, even with help coming in on a daily basis.

So you need to ask, is this a likelihood, or just a remote possibility?

Aunty Margaret

Conrad

pollocmc wrote:

Thanks for that.

My concern was over the council forcing sale to pay for residential care in the future.

pollocmc

P, I dont think you will get a straight answer on this one.

My Mother - In - Law had to go into care. We fretted about the house over a 2 year period and were given all sorts of conflicting advice from different Government departments and had several meetings. In the end the home was'nt taken and my best guess is that each case is individually assesed.

Like so investment decisions there are no guarantees. Personally, I think I would buy it if I were you. I wouldnt draw attention to myself by contacting the council for up - front advice. You decide as they say.

Bossyboots

You can have a deed of trust drawn up to protect you. A solicitor with experience in council house purchases will be able to advise. Have a look here for a basic explanation http://www.freelawyer.co.uk/legalservice/fpservices.asp?fplsid=21

The problem with doing it by will is a) a will can be changed at any time and b) a will can be challenged.

Spendless

My nan bought her council flat last year just after her 80th birthday. She asked sol what would happen if she died before 3 years were up and was told that if the flat was left vacant or rented out and only sold after the 3 years there would be no repaying of discount.