transfer off equity from a right to buy property

[dnadave83]

Hi i'm looking for some advice, i recently finished paying off the mortgage for a family home that was ex council, me and my dad had purchased it together. Im now wanting to take my name off the deeds but im wondering if that will require us to pay back the right to buy discount we had received?


The discount was from my dad who had been renting for 40 years. His name will still be on the deeds and he will have full ownership off the property, there wont be any money exchanged for my half would this require paying back the discount?

[Amethyst]

How long ago did you purchase the property ?

[dnadave83]

How long ago did you purchase the property ?

i purchased it 4 years ago and finished paying it off 3 weeks ago, aslong as my dads name is still on the deeds i cant see why i would have to give the discount back, only got the discount because off him renting for 40 years

[SandraF]

Hi DNA, it is best to speak with the council as they will have in place policy for discounts unless you do not want them to know that you have paid it off. Hope this helps

[Amethyst]

Okay, is there any specific urgency/reason in transferring the equity over to your Dad ? There will be a tiered repayment of the discount up to 5 years (during year 5 it's a fifth of the discount for instance) - although as you are transferring it to your father who is joint owner it shouldn't apply but you would need to check with your council. After 5 years there's no repayment of the discount and the clause about offering it back to the council if sold within 10 years won't apply in those circumstances. Best thing is to speak to the council as they are able to make their own rules regarding transfers between owners.

[dnadave83]

Okay, is there any specific urgency/reason in transferring the equity over to your Dad ? There will be a tiered repayment of the discount up to 5 years (during year 5 it's a fifth of the discount for instance) - although as you are transferring it to your father who is joint owner it shouldn't apply but you would need to check with your council. After 5 years there's no repayment of the discount and the clause about offering it back to the council if sold within 10 years won't apply in those circumstances. Best thing is to speak to the council as they are able to make their own rules regarding transfers between owners.

im trying to buy a house with my girlfriend and they want £12,000 stamp duty as it is classed as a second home, but if i take my name off the deeds to my dads house then il only have to pay £3,000

Do you have a contact detail for the council??

[Amethyst]

Okay. What was your original agreement with your Dad when the house was purchased with regards future equity/value ?

Who's your council ?

[dnadave83]

Okay. What was your original agreement with your Dad when the house was purchased with regards future equity/value ?

Who's your council ?

it was huntingdonshire council, i cant remeber the agreement we just got it together, i was paying for it all i just needed him for the discount

[Crazy council]

am not sure you even have to notify them under them curcs , his interest is increasaing not decreasing.

If the council knew ytou were both buying it, they may have nocked some of his discount off at the start, i just cant see why it would have any affect now.

If he sells in the next few years, if there a charge registered against it foir you, then you may have to notify them.

The thing is, council finance dept can be a nightmare to deal with when your not sure about something.

[Amethyst]

Have you done all the maths and taken advice as to which is the best option for you? Trying to save the extra 3% stamp duty for second homes now could cost you hugely in the long run. The agreement you have with your Dad could turn out very important.

Do you know if the house is currently owned as tenants in common or joint tenants ? ( do you and your dad have specific shares in the property like 40/60 or 50/50 etc or just own it as beneficial joint owners )

When you bought the house was it still from the council under right to buy rather than right to acquire from Luminus ( housing association ).

Huntingdonshire is where I'm from originally