Right To Buy

[lilacuk]

My elderly parents have both lived in the same council house in the midlands since the early seventies.

My mother needs a stairlift and there is no movement from the council about fitting one.

I am considering lending my parents the money to take advantage of the new ruling on right to buy.

I would guess that they have already paid for the house many times.

Were one of my parents or both, to need residential care, would the cost of the care be taken from my investment in the form of a charge.

How can this be avoided or rather my investment protected.

My solicitor suggests the money is used as a loan to my parents, but who trusts a solicitor these days.

My parents do not want to be pushed around into a small bungalow. It seems sensible to buy the house.

Any ideas?

[Peter Hun]

My solicitor suggests the money is used as a loan to my parents, but who trusts a solicitor these days.

So trust some random dude off the Internet instead.

BTW, its not your 'investment', its theirs. If they both die withing 5 years the discount is repayed and no matter what the cost of care will come out of the asset value - you won't get it. Unless you own the house, which will take 7 years after they have outright ownership.

Edited April 12, 2012 by Peter Hun

[trippytinker]

I knew of someone in a similar situation. They purchased the council house in the form of a family loan which protected the property from having to be sold to meet care costs.

That was during the last Tory governments time & I believe Labour took steps to help protect the family home but if you don't trust your solicitor it's time to get a new one.

[tim123]

My elderly parents have both lived in the same council house in the midlands since the early seventies.

My mother needs a stairlift and there is no movement from the council about fitting one.

Don't wish to be unreasonable, but why should this be the council's responsibility?

One of the advantages of having a council property is that you ARE allowed to make non structural modifications to it.

So, ISTM that if you need a non structural modification (that the council wouldn’t do for someone who lives in an owned property) to make it suitable for an infirm person to live in, then that modification in a rented property is the responsibility of the tenant.

tim

[Son of Taeper]

So trust some random dude off the Internet instead.

BTW, its not your 'investment', its theirs. If they both die withing 5 years the discount is repayed and no matter what the cost of care will come out of the asset value - you won't get it. Unless you own the house, which will take 7 years after they have outright ownership.

I think you got it in one.

I have a lot of time for many HPC members both rich and poor.

I suggest that just because a family member needs a stairlift, there is no reason to try to purchase a property at a knock down rate.

Shame on the op :angry:

[porca misèria]

Shame on the op :angry:

I don't like the OP and others exercising undeserved privileges and jumping ahead of hardworking people (or in the OP's case, thinking about it).

But I can't blame him/her for playing the system. Just as with tax avoidance and the rich, they're just playing the system. Blame the system that makes one course of action more profitable than another for Bad Reasons.

[19 year mortgage 8itch]

I don't like the OP and others exercising undeserved privileges and jumping ahead of hardworking people (or in the OP's case, thinking about it).

But I can't blame him/her for playing the system. Just as with tax avoidance and the rich, they're just playing the system. Blame the system that makes one course of action more profitable than another for Bad Reasons.

Wrong to sell

[council dweller]

I think you got it in one.

I have a lot of time for many HPC members both rich and poor.

I suggest that just because a family member needs a stairlift, there is no reason to try to purchase a property at a knock down rate.

Yep.

Get on to your elected representative about it (your local councillor) Failing that you'll have to dip into your own pocket.