Right-To-Buy Transfer Ownership

[PlanB]

Re: Right-To-Buy Transfer Ownership

I guess I'll have to seek some legal advice from my solicitor

Let's kick around some ideas on here first before you spend money on a solicitor

[wales01man]

Re: Right-To-Buy Transfer Ownership

Can I suggest contacting the council with your proposal to see what if anything you can do

[charitynjw]

Re: Right-To-Buy Transfer Ownership

Can I suggest contacting the council with your proposal to see what if anything you can do

No harm in kicking it around for a while first, though!

PlanB certainly seems to be well-versed in the nuances of the situation, & makes some intelligent observations.

The-enforcer can then approach the LA fore-armed with info.

[the-enforcer]

Re: Right-To-Buy Transfer Ownership

Morning All,

The first thing I'm going to do is contact my local Housing Association who we bought the house from using the RTB.
Going to find out firstly if it's OK to transfer it all into my name (they shouldn't have any problem with this as it's a transfer between family members).

Secondly I'm going to have to find out about the effect of transferring it to my name such as inheritance tax and other potential issues highlighted in the previous replies.

Thanks

[PlanB]

Re: Right-To-Buy Transfer Ownership

That sounds like a plan

Read this link below first about transferring property between family members. There are emotional and practical things to consider as well as tax implications. I always think it's best to look at the worst case scenario when making big decisions like this one you're considering.

Ask yourself what would happen if you fell out with your parents and either you or your brother decided to kick them out of the house because you own it and they have no right to live there. I know that probably won't happen but your parents need to know their legal rights from a different solicitor than you.

Also what would happen if you get married? And then what would happen if you got divorced? Your husband would have a claim on the house and not your parents. What if a divorce judge ordered the house to be sold?

There may also be a negative impact on your entitlement to claim benefits in future because you could be above the capital threshold.It's sometimes ok to have equity in your own home when assessing means-tested benefits, but if you moved away and decided to rent it out in future, or leave your parents living in it while you live elsewhere then that would be a different scenario. No one expects to lose a job, but you need to understand what lies ahead if you do.

Your parents may be able to gift the house to you and that would escape inheritance tax issues (not relevant if their estate is £350k or less) but only if they survive for seven years after the gift is made. If they continue to live in the property it will be treated as a gift *with reservation* so not really a gift at all in HMRC's eyes.

This fact sheet is useful:

http://watson-esam.co.uk/Transfer_of...Factsheet.html

[PlanB]

Re: Right-To-Buy Transfer Ownership

I have purchased our council property using the Right-To-Buy scheme jointly with my mum (as she was a named tenant).

How long ago did you buy the property from the Housing Association? Be very careful how you word your conversation with them so as not to plant any negative thoughts in their head. If you do call them don't give your real name simply say you want to ask some hypothetical questions for a *friend*. It would be better to approach a neutral resource such as the CAB to establish your legal position.

[the-enforcer]

Re: Right-To-Buy Transfer Ownership

Wow, this is not as straight forward as I thought it would be.

I see all the points you have highlighted and I need to think of them carefully.

Our house currently is worth about £230k so that means we won't have to pay any inheritance tax.

We officially purchased our house 18 Feb 2013, so it's been about 7 months since we completed the RTB purchase.

I agree it may get them to think in a negative way when it's so soon after the purchase that we want to transfer (we thought of this as well). But our reason for this is legitimate based on the fact that I want to extend the term to pay lower monthly payments.

[PlanB]

Re: Right-To-Buy Transfer Ownership

this is not as straight forward as I thought it would be.

I see all the points you have highlighted and I need to think of them carefully.

The reason I asked that insensitive question about your parents' age was because this transfer may cause problems in future if either of them went into long term care. The local authority (not the HA you bought it from) may take the view that your parents' asset (home) was deliberately given away to avoid any financial obligation to contribute towards their care costs. LAs are hot on this topic and have been known to take legal action to recover costs.

Having said that it could be argued that the sooner they do that the better since they are relatively young and it could be another 20 years or more before this issue would raise its ugly head This manoeuvre now would distance them from the LA's accusations.

[Busybe]

Hi i have recently bought my council house , can i transfer it to my son without having to pay back the discount

[MIKE770]

this thread is 8 years old not up to date start a thread of your own and an update probably be answered

[MIKE770]

after 5 years is was/ may still be no repayment!