Property Advise....

[Ejay]

Good Morning Chaps ;D

Right!!! Im in a right situation at the moment!!!!

My old man has lived in a council house in Audley since 1962!! Now!!!..... I want to buy it! I lived there up until 3 yrs ago and wish to buy it for security for my dad and also as it was my childhood home it has alot of sentimental value to me

Now I have contacted Aspire Housing who have told me I CANNOT purchase the house myself BUT my dad can!! Now if I buy the house outright and put it in my dads name Im breaking the law! + he can use the house as security as in the eyes of the law etc its his house!! Also he cannot pass it on to me within 2 yrs as Aspires terms and conditions state otherwise the full market value needs to be paid back to the seller!!

I am in the process of seeking professional help but wondered if anybody else has been in the same situation??? If you dont want to discuss it on here drop me a pvt message :-)

Cheers

Ejay

[domstoke]

A relation of mine was in a similar situation, the only way around it is the obvious one I think...i.e. gift your old man the cash to buy the house.

Obviously this only applies if you plan on buying the house for cash, and also it may have a knock on effect on any benefits he may receive.

I doubt there will be an other way round it, it all depends on whether you can trust your old man I suppose.

[Widget123]

just be sure to check out where you stand legally on the "gift" thing too - i think theres a limit on what you can "give" to someone in terms of money in a 12 month period. god we have a country with such crap laws!

and inheritance tax is the worst of the lot... where else in the world would they tax you on money you've already paid tax on! :grr

Widget.

[Ejay]

Its getting right up my nose!!!

Im willing to pay what Aspire are asking for the house! But there are so many different laws and regulations that Im unsure about before I take the plundge! I dont intend to inherit the house as I want my dad to live there once I own it and "Then" when he passes away I'll rent it out and then maybe one day move back into it!

If I hadn't have moved out then I could have brought it with my old mans discount but as I no longer live there I cant

Ejay

[Lakeland Potter]

As regards gifts of cash - there is no up front tax. However, if you die within seven years of making the gift then it may be taxed on your death - depending on whether your estate is large enough to attract Capital Transfer (Inheritance) Tax - about £250k.

The same rules apply if your father then "gifts" the house to you in a couple of years time.

[Ejay]

Its rediculous aint it!!!

Im in a position where I can buy a 2 bed semi house with a front and back garden for less than £30K so its nowhere near like £250K so will the same rules apply??? My old man in 66 but Im sure he'll happily just sign the house over to me but like you say if he dies within a certain amount of time I'll be on me ass!!!

I friggin hate this country!! Im 24 and wanna put myself in a secure financial position and there seem to be so many complications. Now dont get me started on Pensions :-)

Ejay

[Lakeland Potter]

No you won't Ejay. The Capital Transfer rules only come into operation if an estate is valued at over £250k (ish) at the time of death.

You will need to seek legal advice from a solicitor though even if you or you Dad don't breach the £250k rule. As, even if you don't fall foul of the CT rules, you need to be sure you don't fall foul of the rules of Aspire.

[Ejay]

Cheers John,

Its a pain in the arse like I said, but I do intend on visiting a lawyer before I do anything!

Ian

[domstoke]

Ejay said:

I dont intend to inherit the house as I want my dad to live there once I own it and "Then" when he passes away I'll rent it out and then maybe one day move back into it!
Ejay

As long as he draws up a will, leaving the house to you, then there isn't a problem.

One thing to be very careful of though...Suppose you give him the cash to buy the house, and he then signs it back over to you after the time limit set by Aspire.

If at some time later he requires nursing care, social services will look back up to (approx) 7 years when deciding on what financial support he can receive.

If e.g. he had to go into residential care a couple of years after handing the house back to you, the social WILL pick up on this and refuse to fund him. As nursing home fees are around £300 per WEEK, it really is worth taking into account.

Sorry if that just confuses you more.