Selling a house

[CEC]

A pensioner I know, due to financial problems want to sell the house. The son has said that he will buy it and then they can rent it from him. He has been told that he cannot do it. Does anyone know why?

[factor-fiction]

Who has told him, CEC?

[sinderella]

are they trying to get someone else to pay the rent?i.e. benefits? this is where they might run into problems.

[VHG]

As long as he pays the correct value for the house I dont think anyone can stop him selling his house to his son.

However if the father sells it at a "cut price" then they may be seen to try to avoid inheritance tax or to avoid care home fees or to increase chances of getting benefits (as the father will have disposed of one of his assests).

[cathfromsaron]

the local council will not usually pay housing benefit to a close relative, and this may be the problem.

also, if he needs to go into 'a home' and pay for care, the council will want it to be paid from the proceeds, so he may be no better off!

he will need advice about inheritance taxes and what will happen if he dies with 7 years etc! it may look like he is disposing of his assets!

BUT apart from these considerations, he can certainly buy and sell his home however he wishes, to his son or a stranger!

cath x

[factor-fiction]

Hi-we need to know who has told him this to give us an idea as to whether it is something to do with benefits, tax, care home fees etc

[Celticv11]

http://www.google.co....mVBf5ihLXyYGtRSuDcTaw

[yogi-bear]

Hi CEC

In addition to what the good folk here have already said, found this that may help as to the 7 year rule, as Cath mentions, and the implications.

http://www.taxfix.co....to-your-children.html

I would seek out solicitor advice and guidance myself....wouldnt be costly for a 15 minuteor so chat....perhaps £20, but ask first. Best of Luck

[tonywiltshire]

There are four rules that they may try to use.
.
1/ You are unable to get housing benefit if you lived in the house before renting and at that time you were a non-dependant of the person who lives there and that person continues to live there.

2/ You used to own the house you now rent within the last 5 years.

3/ It is a contrived letting for the purpose of obtaining HB. The motives of the Landlord & tenant may be considered in order to determine this.

4/ Your capital is above the maximum amount even for some pensioners

I would suggest you do more research and take advise before action, I have assisted once successfully with 1 & 2, and had some success with 3 but not 4.

[tonywiltshire]

In my reply I have assumed, perhaps incorrectly, that Housing and Council Tax benefit may be required.

[CEC]

Thank you all very much. The pensioner is not on any benefit, so far as I know. I also think that the son would give them a fair price. I will speak to them again. As mentoned I cannot see why the deal cannot be struck!
Thanks again.

[joko]

cath - you are wrong!

i rent my house from my father and have signed on many times and received housing benefit - they have never once even questioned it.

as long as its all done properly, rent book agreement etc, being a close relative is irrelevant.
if a father has a house sitting empty and a daughter needs a home why shouldnt he rent it to her? shed only have to rent somewhere else and the father would have to get a stranger in - so whats the difference?
(not partner or dependant though

[joko]

who is 'they'?

surely if its all done privately who can interfere?

[ojread2]

cath said "the local council will not usually pay housing benefit to a close relative, and this may be the problem. "

Wrong! As long as you have a contract, and rent book there will be no issue with renting from family