Category Archives: Your Questions

Right To Buy Problems Loom Large

Right To Buy moved 2,000,000 homes into private ownership.

Many of those right to buy homes are now at risk in two ways, and their owners and those who subsidised the purchase need to contact us.  This could prevent total loss of their Right To Buy homes to their families.   For some, we are afraid it will be too late.. and that was how this topic was started. families all over the UK are losing out, now.

Is that fair?”

Right to Buy helped by children.

Right to Buy HouseMany parents couldn’t afford to buy their own council or housing association home without help.  Hundreds of thousands of children rushed to help their parents with deposits or mortgage guarantees.   In most cases, those children expected their financial help to be repaid on the death of the parent, with an appropriately worded Last Will.

But in practice, many are getting NOTHING – find out why….

Right to Buy to Help Children.

These  parents were a bit better off, and they wanted to be sure that future generations of their family had the ability to buy their own homes, and not to be at the mercy of the Local Council or Housing Association.  In many cases, they have succeeded, but in many more their generosity and sacrifice will be wasted and they will get NOTHING back…

The Spectre at The Right to Buy Feast.

Funnily enough, the spectre is the Local Council.   Having given you the Right to Buy, they are now greedily looking for opportunities to grab the home back from you.  And in many cases they will succeed.

It all comes down to where you have enough income (between £50,000 and £75,000 a year EACH) to pay should you need care in your old age.   If you haven’t enough income or capital to fund it, then the Council will eventually want to sell your home to fund the care.   They won’t throw you out of it, or any young children or retired relatives, but ultimately they will sell it and take the money.  If you die promptly enough, there might be some change left over.

But my children funded the Right to Buy!

There is a fair chance that they can kiss goodbye to their money, and watch it disappear into the Local Councils coffers.  In most cases the children won’t be on the deeds, so they have no clear rights.  Even if they are on the deeds, the Local Council may legally cut their share by up to 70% – that is nearly three quarters ripped away.

But I left it to them in my Will!

But in a Will, you only leave anything you still own – if the Local Council have already grabbed your Right to Buy home and sold it, or put a charge on it, it is too late.

What should I do?

Simple, all Right to Buy owners should contact us urgently.

Parents house has been given to me – is it safe?

Parents House Question

My parents house was transferred to me to me 10 years ago, in order to avoid losing it to care fees. They are both still alive and in fair health at 90 and 85 respectively, father and mother. I now need to use the equity in the property to raise some funds with their knowledge and agreement.

My question is if any of them were to go into a nursing home, they have no real savings to speak of, would the council authority take into account that they transferred the house to me to alleviate them paying for the care?

At present they are quite capable of looking after themselves with help from myself and family.  They live in Wales.

Parents House Problems I am afraid….

Hi Anon

The council can go back as far as they like to detect and rectify deliberate deprivation. It looks, by your own admission, pretty clear cut in this case!

So if there was no sound reason for the transfer of your parents house, other than avoiding Care Fees, they will attempt to claim back the full current value of your parents house from you, irrespective of any mortgage one it. Remember, local Councils have to pick up the tab for care fees if there are insufficient assets, and they are very short of cash.  Inevitably, they are going to become far more confrontational in pursuing “hidden” assets.

A properly organised transfer (ideally into a trust such as ours) can be effective after 6 months or so, sometimes even less.

I have attached details for your information.

Do bear in mind that if you went bankrupt, your parents would be made homeless whether or not you take out this mortgage. If you get divorced, your wife would probably get half the value of your parents house, and wish to sell it!  If you died, Inheritance Tax would potentially have to be paid on the value of your parents house as it is part of your estate.

Good luck!

Steve
Stephen Pett 0800 298 5208 = 01323 741200
Allied Professional Will Writers Ltd

 Parents House