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    Just a quick one if I give my nan the cash to buy her council house which with discount will be 20000 and she leaves it to me in a will. If anything happens to her within 5 years (the period within which you are not able to sell the house without repaying the discount) then what will happen in reguards to the house...?? I'm just looking for an answer before I actually go ahead.

    24 Comments

    Should we feel flattered that you registered a HUKD account just to ask this question?

    I once bought an ex council house, the year after the occupations bought it via right to buy.

    They had to repay a percentage on a sliding scale over number of years of ownership.

    I expect it will be the same.

    Depending on house value, and rest of her estate be aware of inheritance tax as well.

    It is open to the one that rents the property not someone who wants a quick buck. Should you not be concerned about your nan's death rather than her house or was you going to do a quick pillow job?

    Your Nan name will be on the Deeds. If she needs to go into a care home the house will be sold to pay for her care.

    Ignore these silly comments about your nan you have to think practically about these things. Don't know if this will help you in anyway but if she leaves the house to you may have to pay tax on it - not to sure how that part works however i looked in to this for my nan if she put the house in your name and nothing happens to her in the next 7 years then you are tax free again don't know if this helps. If you do get any valuable info on this would you mind dropping me a message as i am kind of going through the same thing as is my partner. best of luck xx

    A quick google search brings this up from the .gov site on right to buy

    5.4 Selling or transferring your home later
    Once you buy your home through the Right to Buy, you can sell it whenever you want. But there are some things you need to know:

    if you sell within 10 years – you first have to ask your former landlord if they want to buy your home back at market value. If they say ‘no’ then you can sell it on the open market
    In addition:

    if you sell within 5 years – you will usually have to repay some or all of the Right to Buy discount – the amount depends on the price you sell at and how long you have been the owner. This also applies if you agree to transfer ownership to somebody else
    if you live in a rural area – you may only be allowed to sell your home to somebody who lives or works locally. Ask your landlord about this

    So looks like you may not get a look in or youve got some more cash to cough up later on.

    I wouldn't risk that 20K unless you've loads of cash and it's a small gamble. Surely she can borrow 20k to buy the house herself with the house as collateral.
    Then the risks prior to you receiving it in the will are having to sell it to pay for care, her changing her mind who she's leaving it to. I assume she won't have to pay tax on her estate and if she does it's only on estate over 250k or somerts like that. I'd probably go that route but make sure the will is sorted. You also hear stories of elderly people being talked/ bullied into changing their wills...

    Banned

    AndyRoyd

    Should we feel flattered that you registered a HUKD account just to ask … Should we feel flattered that you registered a HUKD account just to ask this question?



    ​so what?? 1000s of people just browse the site without opening a account

    Lend her the money and have the house as collateral against the loan.

    Does she actually want to OWN the property and therefore be responsible for all the maintenance in the future? What happens if the boiler needs replacing in the next year or so? As a tenant of a council property she is in a very safe position for someone who I'm assuming is probably on a limited income.

    Does she currently pay council tax? If not I'm sure I've heard once the property is purchased she may have to. I'm no expert so apologies if I'm wrong, but if it's true, it's something she'd need to take into consideration along with everything else that has already been mentioned.

    Ignore the haters!. We too have considered this, but have yet to do anything about it because my gut says its too risky, and sometimes, other things are more important. There are many things to consider [too many and this is why we havent done anything]

    Firstly, and most importantly, you have to be genuinely prepared to lose the 20k should something go wrong, as is the case with most of these type of "investments".

    You have to make sure you yourself are financially secure. What happens if things go wrong in your life (and i mean wrong). You will find it hard to have 20k sitting there in your nans home, when you cant even afford your own mortgage, and I'm sure theres no way your nan could buy you out. I would only remotely consider this if you yourself are mortage free. As hopefully your lovely nan will go on to a ripe old age

    Prepare for arguments! Is there anyone else in the family who may want a peace of the pie? Do remember, it is her discount, her home, her entitlement. So assuming the house is worth 100k, you put in 20k, your nan will still own 80% of the house, with which she can do as she chooses. You will only have a 20% stake in the property. Things and people change. You may think any family you have are solid and no one would mind. But keep in mind people change when it comes to money and it has tore many families apart. I've seen it.

    Property Maintenance! who pays for the Boiler [as someone mentioned above], any pipework, the collapsed fence, the broken cystern or roof tiles? As your nan is currently council, she will have this protection of repairs at no cost to her included in her rent. My stance is it makes no real differece to her life whether she owns it or the council owns it unless this was 20-30 years ago, but is it fair for her to suddenly have to foot bills for potential repairs?

    Just think very carefully. This is a great way for your nan to continue to help her future generations to move forward etc even when she is not here anymore [this is why we wanted to do it, so the money would go in a pot for the grandkids to help with buying their own home in the future], but the obsticals and risks are great. As mentioned we have looked into it, but as yet done nothing about it as I dont think we're willing to take the above risks.

    Original Poster

    drtongue

    It is open to the one that rents the property not someone who wants a … It is open to the one that rents the property not someone who wants a quick buck. Should you not be concerned about your nan's death rather than her house or was you going to do a quick pillow job?



    Haha have you got nothing better to do?..Yes my nan obviously wants to buy the house as she's lived in it over 50 years and therefore wants to keep it in the family and this is the only way possible as it will stay in the family nothing to do with making a quick buck you sad person

    Original Poster

    AndyRoyd

    Should we feel flattered that you registered a HUKD account just to ask … Should we feel flattered that you registered a HUKD account just to ask this question?


    Haha yes you should. I just saw a simular type question on Google

    Original Poster

    bigweapon07

    A quick google search brings this up from the .gov site on right to … A quick google search brings this up from the .gov site on right to buy5.4 Selling or transferring your home laterOnce you buy your home through the Right to Buy, you can sell it whenever you want. But there are some things you need to know:if you sell within 10 years – you first have to ask your former landlord if they want to buy your home back at market value. If they say ‘no’ then you can sell it on the open marketIn addition:if you sell within 5 years – you will usually have to repay some or all of the Right to Buy discount – the amount depends on the price you sell at and how long you have been the owner. This also applies if you agree to transfer ownership to somebody elseif you live in a rural area – you may only be allowed to sell your home to somebody who lives or works locally. Ask your landlord about thisSo looks like you may not get a look in or youve got some more cash to cough up later on.



    Thankyou. From this it sound like I would have to pay back some of the discount if anything happened within 5 years. The house will remain in my nans name until she's passes eitherway. I just need to be 100% cLear on what happens if it's within 5 years hopefully it doesn't but these are things I need to know as it's a lot of money

    Original Poster

    buttonpushervic

    Does she actually want to OWN the property and therefore be responsible … Does she actually want to OWN the property and therefore be responsible for all the maintenance in the future? What happens if the boiler needs replacing in the next year or so? As a tenant of a council property she is in a very safe position for someone who I'm assuming is probably on a limited income.



    Yes she does. I wouldn't dream of pressuring her into buying a house and yes I understand I would maintain the house while she owns it.

    Edited by: "CD1994" 20th May

    Original Poster

    iwashere2000

    so what?? 1000s of people just browse the site without opening a account


    I don't know

    Original Poster

    tempt

    Ouch, so much pessimism and negativity around here. People are cashing in … Ouch, so much pessimism and negativity around here. People are cashing in big time on their right-to-buy entitlement and it's stupid to let go of this opportunity to make a fortune. The woman raffling her London home for £3.75m bought it three years ago through right-to-buy – for just £360k



    Haha I agree 100% but I'm not doing it to make a fortune as I've said my nan just wants it to stay in the family as she's lived their over 50 year and this is the only possible way.

    Original Poster

    charrisdaisy

    Ignore these silly comments about your nan you have to think practically … Ignore these silly comments about your nan you have to think practically about these things. Don't know if this will help you in anyway but if she leaves the house to you may have to pay tax on it - not to sure how that part works however i looked in to this for my nan if she put the house in your name and nothing happens to her in the next 7 years then you are tax free again don't know if this helps. If you do get any valuable info on this would you mind dropping me a message as i am kind of going through the same thing as is my partner. best of luck xx



    Yes that's helpful. I'll look further into the tax. I think from what I can gather if my nan passed within 5 year of her buying it (God rest she doesn't) and the house was passed onto me that I would then have to pay a percentage of the discount she got of the market value price. But I could be wrong and she's gonna ask the council before anything goes further

    Original Poster

    Spakkle

    Ignore the haters!. We too have considered this, but have yet to do … Ignore the haters!. We too have considered this, but have yet to do anything about it because my gut says its too risky, and sometimes, other things are more important. There are many things to consider [too many and this is why we havent done anything] Firstly, and most importantly, you have to be genuinely prepared to lose the 20k should something go wrong, as is the case with most of these type of "investments". You have to make sure you yourself are financially secure. What happens if things go wrong in your life (and i mean wrong). You will find it hard to have 20k sitting there in your nans home, when you cant even afford your own mortgage, and I'm sure theres no way your nan could buy you out. I would only remotely consider this if you yourself are mortage free. As hopefully your lovely nan will go on to a ripe old agePrepare for arguments! Is there anyone else in the family who may want a peace of the pie? Do remember, it is her discount, her home, her entitlement. So assuming the house is worth 100k, you put in 20k, your nan will still own 80% of the house, with which she can do as she chooses. You will only have a 20% stake in the property. Things and people change. You may think any family you have are solid and no one would mind. But keep in mind people change when it comes to money and it has tore many families apart. I've seen it. Property Maintenance! who pays for the Boiler [as someone mentioned above], any pipework, the collapsed fence, the broken cystern or roof tiles? As your nan is currently council, she will have this protection of repairs at no cost to her included in her rent. My stance is it makes no real differece to her life whether she owns it or the council owns it unless this was 20-30 years ago, but is it fair for her to suddenly have to foot bills for potential repairs? Just think very carefully. This is a great way for your nan to continue to help her future generations to move forward etc even when she is not here anymore [this is why we wanted to do it, so the money would go in a pot for the grandkids to help with buying their own home in the future], but the obsticals and risks are great. As mentioned we have looked into it, but as yet done nothing about it as I dont think we're willing to take the above risks.



    Thank you for the reply we've discussed most of the issues you've pointed out and none of them seem to be a problem although I do understand where you are coming from. I am mortgage free, and as for other family members none of them have a problem and if one of them was hesitant in the smallest bit I wouldn't proceed. And as for the house itself I would be gifting my nan the 20k for her to buy it outright as she's lived in it 50+ years and gets a large discount from the council that's why it's so cheap. Then in turn she would leave the house to me and I will maintain the house while she lives in it and owns it. However their is I clause that states if she sells it within 5 years she will have to pay a percentage of the discount back 1/5 each year if I remember rightly. I just want to be clear. Is this still the same if the worst was to happen in 5 years and it got passed on to me. Fingers crossed it doesn't. It's not nice to talk about but it's a lot of money and everything needs to be clarified in matters like this.
    Edited by: "CD1994" 20th May

    CD1994

    Thank you for the reply we've discussed most of the issues you've pointed … Thank you for the reply we've discussed most of the issues you've pointed out and none of them seem to be a problem although I do understand where you are coming from. I am mortgage free, and as for other family members none of them have a problem and if one of them was hesitant in the smallest bit I wouldn't proceed. And as for the house itself I would be gifting my nan the 20k for her to buy it outright as she's lived in it 50+ years and gets a large discount from the council that's why it's so cheap. Then in turn she would leave the house to me and I will maintain the house while she lives in it and owns it. However their is I clause that states if she sells it within 5 years she will have to pay a percentage of the discount back 1/5 each year if I remember rightly. I just want to be clear. Is this still the same if the worst was to happen in 5 years and it got passed on to me. Fingers crossed it doesn't. It's not nice to talk about but it's a lot of money and everything needs to be clarified in matters like this.



    "and as for other family members none of them have a problem". They say it isnt a problem right now, but I do know that when it comes to it, things can change. Money can and does bring out the worst in people. I've seen this happen with friends I've known oveer the years. They will see her passing, and should you ever need to sell the place, they will see you getting the thousands upon thousands and may wonder where their cut of her 80% ownership is. It doesn't mean they are bad people as after all, shes paid the rent for the last 50 years, and they would/should be entitled to some of it.

    I do see your point about keeping it in the family, we want to too, as the house where my mum is, is where my dad died and it would be so painful to never be able to walk into that room again with so many good memories. But at some point you have to realise its bricks and mortar, the memories are in your head and always will be.

    If you had to pay part of the discount back (as she would get the maximum discount), this issue wouldn't be a gamechanger for me. You could take out a small mortgage on the place if you had to (as you yourself are mortage free, would own this home outright, you wouldnt struggle at all). It would mean the property is still in the family, and you are still getting it at way, way (way) below market value.

    As I said the main issues for me where that I personally am not mortgage free, though I do only have a very small mortgage. But I know money problems don't pick and choose who they affect, and would never want to have to be in a positon to have to choose. But mainly its how it could affect other members in the family when the owrst happens - that's the game changer for me. Even if my mum left it to all of us (6 kids) it would still cause issue and fights im sure, over who does what, as one person would always end up doing more and footing more of the bill etc. for us, money just isn't important enough to cause those possible issues.

    Do keep this thread open as I would love to hear what you decide I hope it works well for you and would be lovely to hear a success story

    All the best

    Original Poster

    Ahhh yes I understand what you mean with the it causing trouble within the family and I will definitely take it into further consideration.
    It's a bit more complicated than taking a mortgage out though because it's prefab concrete blocks. So unfortunately it has to be paid cash outright. However this is not a problem as I'm in that line of work.

    As for your situation. I understand that it could easily cause more uproar with their being a lot more of you. As I'm a grandchild she obviously asked my father (her son) and my aunt (her daughter) first but theye seem ok with it but like you said things can change.
    Thanks again for the replies and advice I'll keep you posted

    CD1994

    Haha have you got nothing better to do?..Yes my nan obviously wants to … Haha have you got nothing better to do?..Yes my nan obviously wants to buy the house as she's lived in it over 50 years and therefore wants to keep it in the family and this is the only way possible as it will stay in the family nothing to do with making a quick buck you sad person



    ​From your aggressive comment yes I'd say pillow job. And just to add I'm happy.
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