MCGARY

This is a serious question and have to get it sorted before i go away for a few months. I know one problem is she might out live me but has anyone on here bought there parents or grans councol house? How does it work? Do i just buy it and she wills it to me? Or is there complications if she pops her clogs? Does it go back to the council or would i have to pay her discount? any info would be appreciated . Thank you Gary

Dazza01

AFAIK
I think ur gran needs to fill the form in you get from the council, she needs to let them know she's paying cash (which u provide) and ur gran then leaves it to u in her will (check it out with a solicitor first) if u sell it within 3 years u have to pay back some of the discount you received, but not sure what happens if she dies.

BUT make sure ur grans house is in order, cos once u put the right to buy papers in, that's it, the council will no longer do any repairs on her house.

47 NAT

Like Dazza has said, the council will only do repairs that are classed as emergency e.g. water, electric and arent interested in anything else.
You'll need to go to the Housing dept and get a "right to buy" form (cant remember the number for it) and fill it in (or your gran) and this will then get processed for the discount you get from years lived there. They will then eventaully send a Valuer round to survey the property and give you the selling price. The maximum discount is now £38k. It can take a while to do and ours last year took 5 months from start to finish! Sorry but I cant help with your other questions although a suitable FA/Mortgage consultant should be able to help ...

Nath

camk

make sure she get's the Will sorted out as well.

3times

Forget the 'will' as a 'will' is basically a wish list that can be contested and changed up to 2 years after death.

If you buy the property you need a trust (possibly an irrevocable trust) that is proof that you are the owner of the property even though your name is not on the deeds. After the 3 years then get the deeds changed so your name is on them.

You should be aware that the property will be classed as investment therefore there may be a capital gains liability when sold. It could also effect any benefits that your gran may recieve.

If I were you I would go to see a reputable IFA or solicitor, recommended ones would be a bonus. Make sure that they have done this type of thing before as there can be pitfalls.

Apparition

Dazza has it about right. We did a simialr thing several years ago with my Mum's house. She basically owned half of it. My ex and I bought the other half on the understanding that she left that half of the house to our two kids in her will. Yes the three year rule did apply then too.
We are now about 7 - 8 years down the line, Mum (bless her cotton sox ) is still going strong and the house has about doubled in value in that time. So when the unfortunate day does eventually come, my kids are in for a HUGE pay off. Its about the best investement I have ever made and believe me, I have made a few and lost a lot over the years.
GO FOR IT !

Apparition

OH Yes... forgot that bit..... the kids half is left in "Trust" for them.

MCGARY

Thank you very much for the replys lads,

They have been very helpful. I will get on the phone to the solicitor now and see what he says. Thank you very much and will go about getting the form also. All the best and thanks again Gary

D8UGF

Word of warning tho'. IIRC there can be certain problems if your gran is taken into care and requires nursing. I think by law the government are entitled to use any assests/monies that you have to pay for the cost of your care. But I think the way round it was to say that in the event of her death/illness you must be payed back the money that u leant here to buy the property, also I think you are allowed up to 16K in savings/assets that cant be touched so it doesnt make it worth while for them to try and reclaim the money after you have been payed off as well.
Also, dont know about England but up here after the 30th september 2002 the "modernised right to buy" applies to new tennants, but it also means that if your gran does anything to change her tenancy i.e name change or additional names on the tenancy it will also put her on the "modernised rtb". AFAIK the basic difference is you only get 35% discount max instead of 60% and you must be in your home for 5 years instead of 2 to have the right to buy.

Phew!

Hope that helps. But I would go for it if I was you, regret not doing it with my grans flat, could have bought it for 7.5K worth about 35-40k now

Dougie

47 NAT

Or the other option is to add your name to the rent book, although if she gets a reduced Council tax bill it might proove more expensive for you/her. Then in 1 years time (I'm sure its still only 1 year, but might be wrong) buy it and you'll still get the discount

Nath