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Thread: Buying our Council house

  1. #1

    Buying our Council house

    Hi everyone, I do so sympathise with all who have suffered at the hands of these monsters, I have been through it from the start, I am disabled with multiple long term illnesses and have been treated terribly over the last 8 years, assessment after assessment, losing benefits, losing the will to live at times, feeling worthless, I'm sure you all know the feelings.

    However, things have recently changed for me, I was awarded high rate of both PIP components for 10 years (though I'm still worried that they will come after me when I change over to universal credit).

    Anyhow, now I can think of other things, and I worry about when I "go" and my wife is left on her own. We live in a Council house and are under occupying, so my wife maybe forced to move out. I have always objected to the idea of buying our home but now wish I had. I'm in my 60's and sort of put it out of my mind as impossible but my Son is doing quite well and has offered to give us the money. I'm seriously thinking about it as a way to get the Council off my back.

    But as you know every silver lining has a cloud ! now I'm worried about what they will do with my benefits. I want to pay him back as much as I can and take out life insurance (if possible). Does anyone know how it would affect us ? would our ESA be reduced as we no longer need rent money ? any other snags ? I dont trust any of them.

    I know this isn't the usual type of question but I'm hoping someone might have some answers or direct me to somewhere that does.

  2. #2
    Senior Member nukecad's Avatar
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    Firstly PIP stays outside of Universal Credit so you have no worries there.

    If your ESA is Contribution Based then that is not affected either.
    It is only Income Related ESA that will be migrated.

    Second you main residence does not count as capital for benefit purposes.
    There may be a slight question if your son gives you the money and it stays in your account for a while but of course there are ways round that.

    ESA/PIP would not be affected, housing benefit would stop cos you would have no rent to pay.
    Council Tax benefit should not change if you already qualify.

    I'm assuming you are talking about right to buy and so he couldn't buy it and gift it to you, or let you live there for zero rent.

    There a few other things I can think of straight away but they could have tax implications for your son.

    A quick free consult with a lawyer and/or accountant would soon point out the best way to go about it.
    Last edited by nukecad; 03-07-2018 at 04:30 PM.
    I don't know everything. - But I'm good at searching for, and finding, stuff.

    Migration from ESA to Universal Credit- Click here for information.

  3. #3
    Thank you kindly for the quick and helpful reply, yes it will be under right to buy, we've been Council tenants for 40 years so get full discount.

  4. #4
    Senior Member nukecad's Avatar
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    I would be more bothered about getting it right for tax purposes than for any problems with benefits.
    I don't know everything. - But I'm good at searching for, and finding, stuff.

    Migration from ESA to Universal Credit- Click here for information.

  5. #5
    Oh...ok I never really thought about tax problems, I just assumed if the money was a gift to me and was transferred the same day to the Council it would be ok.....yea this needs a lot more thought, I'll take your advice and talk to someone. thanks nukecad.

  6. #6
    Senior Member nukecad's Avatar
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    As I say I don't see any problems from a benefits point of view.

    It's more a question of what tax your son may have to pay in different scenarios.
    I don't know everything. - But I'm good at searching for, and finding, stuff.

    Migration from ESA to Universal Credit- Click here for information.

  7. #7
    I just spoke to my Son and he was planning on a re-mortgage on his house, he reckons he can gift me or me and the wife that amount without any tax problems, but like you say I need to take advice. He also said the Halifax would arrange it with the Council as long as I didn't sell the house as they would have equity in the property due to the right to buy discount, I think this is for 3 years.
    Last edited by flyte; 03-07-2018 at 07:37 PM.

  8. #8
    Hi Abilene, yes that's one thing we have given thought to, I was a Plumber when I was working, my Brother is a gas fitter, my Son is a Joiner and I have friends in the building trade so hopefully were pretty much covered. One of the reasons we decided to try for this was, ironically, that very point, for over 10 years now we have been trying to get the Council to make repairs, the house has problems which they wont put right, all the houses that have been sold off have the same problems but we know and understand what it takes to put things right, also the costs. I could go into a right old rant about how the Council has turned its back on residents so they can spend money on their pet projects, and now with the cut backs we stand no chance.....but I wont rant .....I'll just sit and quietly seethe

  9. #9
    Senior Member nukecad's Avatar
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    It sounds like your son is on top of everything.

    He probaby wasn't too sure about the benefit side of things, nobody is until they have to start claiming them.

    But no doubt he would have checked before doing anything, and as I say I don't see any problems with what is being proposed.

    Yes, under right to buy the council retains an interest in the property for so many years after you buy it from them.
    That is to stop people buying cheap off the council and then immediately selling for a big profit.
    Again in this case as your son is re-mortgaging his own house and not yours then it should not be a problem.
    (Even mortgaging yours would not be, if you could afford the repayments, the lenders are used to right to buy mortgages).
    I don't know everything. - But I'm good at searching for, and finding, stuff.

    Migration from ESA to Universal Credit- Click here for information.

  10. #10
    Thanks nukecad, yes I think its looking good so far, it really would be a huge worry lifted if we escaped the Councils clutches, my wife got the right to buy pack today and I cant see any problems. Right now we pay £70 per week to the Council in rent straight out of our benefits so that would end, and the little pension I got a few years ago would be returned to us, at the moment they take nearly all of it from our housing benefits even after they promised it wouldn't affect anything. Obviously we wont be better off when we go ahead, there's a lot to do and pay for, but the security it will provide for my wife is beyond money.

    When we get closer to a final decision I'll put it all down on paper and take advice as you suggested.

    My Son is a great young guy, I'm so proud of him

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