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kevino

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I'd like to seek advice of fellow HPC'ers.

Current situation is Mrs and I bought in late 2001. I got a good overseas contract in 2002 (Oil and Gas) and hence made enough to pay off mortgage in late '07. We are wanting to move ( to have another child), but not at current prices!!!

In meantime, amongst the madness from 2003, my Mother in law and her partner bought the Council house she has lived in since late 80's under right to buy. They paid 18 k for it. They are now splitting up. Mother in law doesn't want to move, she's been there for 20 years. No way she can afford to buy him out, she's in remission from Breast cancer and back is wrecked from years working as Nurse. They have the house up for sale. Your move advised to put it up for 99,950, next door sold for 88 last year. Unsurprisingly no offers. I have offered them 40 k for it, 10 k to pay off their mortgage, 30 k cash for them to split as they see fit and mother in law get's to stay in it rent free for rest of her days. They are getting desperate, she is not working and he has just lost job as a bus driver. Both of them are 59, so earning potential not great.

I think this is a logical solution, yes, we (more likely my daughter) get a house cheap (probably at it's real Market value tbh) but we have a rent free tenant on an open ended tenancy. They get some cash to supplement pensions??

Am I missing something legally??

This ain't a windup, going to check on mortgages etc on Monday!!!

Any advice or pitfalls appreciated.

Kevino.

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I'd like to seek advice of fellow HPC'ers.

Current situation is Mrs and I bought in late 2001. I got a good overseas contract in 2002 (Oil and Gas) and hence made enough to pay off mortgage in late '07. We are wanting to move ( to have another child), but not at current prices!!!

In meantime, amongst the madness from 2003, my Mother in law and her partner bought the Council house she has lived in since late 80's under right to buy. They paid 18 k for it. They are now splitting up. Mother in law doesn't want to move, she's been there for 20 years. No way she can afford to buy him out, she's in remission from Breast cancer and back is wrecked from years working as Nurse. They have the house up for sale. Your move advised to put it up for 99,950, next door sold for 88 last year. Unsurprisingly no offers. I have offered them 40 k for it, 10 k to pay off their mortgage, 30 k cash for them to split as they see fit and mother in law get's to stay in it rent free for rest of her days. They are getting desperate, she is not working and he has just lost job as a bus driver. Both of them are 59, so earning potential not great.

I think this is a logical solution, yes, we (more likely my daughter) get a house cheap (probably at it's real Market value tbh) but we have a rent free tenant on an open ended tenancy. They get some cash to supplement pensions??

Am I missing something legally??

This ain't a windup, going to check on mortgages etc on Monday!!!

Any advice or pitfalls appreciated.

Kevino.

nothing illegal what you are doing, from what i know, sounds a great deal for them both,

also you may be able to get some sort of housing benifit from her, might not be much but dont think they would turn ou down if you asked for 100 a month

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nothing illegal what you are doing, from what i know, sounds a great deal for them both,

also you may be able to get some sort of housing benifit from her, might not be much but dont think they would turn ou down if you asked for 100 a month

Not sure HB covers relatives.

Shouldn't she be claiming that other benefit SMI?

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Not sure HB covers relatives.

Shouldn't she be claiming that other benefit SMI?

What is SMI??

I wouldn't claim the HB!!! To be honest, it solves an immediate problem and is an asset for my daughter/her siblings. Possibly to pay uni fees!!!

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I'd like to seek advice of fellow HPC'ers.

Current situation is Mrs and I bought in late 2001. I got a good overseas contract in 2002 (Oil and Gas) and hence made enough to pay off mortgage in late '07. We are wanting to move ( to have another child), but not at current prices!!!

In meantime, amongst the madness from 2003, my Mother in law and her partner bought the Council house she has lived in since late 80's under right to buy. They paid 18 k for it. They are now splitting up. Mother in law doesn't want to move, she's been there for 20 years. No way she can afford to buy him out, she's in remission from Breast cancer and back is wrecked from years working as Nurse. They have the house up for sale. Your move advised to put it up for 99,950, next door sold for 88 last year. Unsurprisingly no offers. I have offered them 40 k for it, 10 k to pay off their mortgage, 30 k cash for them to split as they see fit and mother in law get's to stay in it rent free for rest of her days. They are getting desperate, she is not working and he has just lost job as a bus driver. Both of them are 59, so earning potential not great.

I think this is a logical solution, yes, we (more likely my daughter) get a house cheap (probably at it's real Market value tbh) but we have a rent free tenant on an open ended tenancy. They get some cash to supplement pensions??

Am I missing something legally??

This ain't a windup, going to check on mortgages etc on Monday!!!

Any advice or pitfalls appreciated.

Kevino.

Kevino,

I think I spot the flaw in your plan. Unless you and the wife are moving in with your mother-in-law, you are paying 40,000 for a house but not getting anywhere to LIVE for your money. And you wont be earning any rent (read: interest) on the money you have put down.

Where is the house your mother in law lives? Is it a terrace? I'm curious to see what you consider to be a 40,000 house. I'm in Leeds - there's one for 40K going to auction thats just round the corner!

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Kevino,

I think I spot the flaw in your plan. Unless you and the wife are moving in with your mother-in-law, you are paying 40,000 for a house but not getting anywhere to LIVE for your money. And you wont be earning any rent (read: interest) on the money you have put down.

Where is the house your mother in law lives? Is it a terrace? I'm curious to see what you consider to be a 40,000 house. I'm in Leeds - there's one for 40K going to auction thats just round the corner!

It's Sunderland she lives in, 3 Bed Terrace.

No, we won't be getting a place to live, but we have a house paid off already that we live in. I'd be going for a 30K mortgage and will hammer it down in repayments especially as I have an overseas contract kicking off next year. I will get a new house when they decline to sensible levels of price. The house my Mother in law lives in now is a long term project for our children's education etc.

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Sounds like the OP is trying to take his MIL and her ex for £50k.

Can't see why her partner would want to accept £15k instead of £45k if the only benefit is *SHE* gets to stay in the house.

These sort of arrangements do NOT end well.

Example would be if his MIL had to go into care, the council would see it as disposal of assets below value and ask him for £50k else she'll be out on her ****.

OP: You need proper legal advice.

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You're onto a great idea apart from what does the partner get out of it? no free house for the rest of his days for sure.

If you can get them to agree then you've got to factor in landlord gas check, insurance and repair costs with no income.

HB won't do unless it's a real tenancy - one which you'd evict her if they don't pay (Suspect some of these relative things are going to be pushed to the limit soon just to see who will actually evict and who is taking the piss)

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I'd like to seek advice of fellow HPC'ers.

Current situation is Mrs and I bought in late 2001. I got a good overseas contract in 2002 (Oil and Gas) and hence made enough to pay off mortgage in late '07. We are wanting to move ( to have another child), but not at current prices!!!

In meantime, amongst the madness from 2003, my Mother in law and her partner bought the Council house she has lived in since late 80's under right to buy. They paid 18 k for it. They are now splitting up. Mother in law doesn't want to move, she's been there for 20 years. No way she can afford to buy him out, she's in remission from Breast cancer and back is wrecked from years working as Nurse. They have the house up for sale. Your move advised to put it up for 99,950, next door sold for 88 last year. Unsurprisingly no offers. I have offered them 40 k for it, 10 k to pay off their mortgage, 30 k cash for them to split as they see fit and mother in law get's to stay in it rent free for rest of her days. They are getting desperate, she is not working and he has just lost job as a bus driver. Both of them are 59, so earning potential not great.

I think this is a logical solution, yes, we (more likely my daughter) get a house cheap (probably at it's real Market value tbh) but we have a rent free tenant on an open ended tenancy. They get some cash to supplement pensions??

Am I missing something legally??

This ain't a windup, going to check on mortgages etc on Monday!!!

Any advice or pitfalls appreciated.

Kevino.

Well I can see a problem straight off.

Well your MIL's partner has a 50% stake in the equity in the house. If the house is worth, say £80k, then that equity is worth £35k, less costs of selling of course. And you are offering him half of £30k. Why would he wish to accept such a deal?

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You're onto a great idea apart from what does the partner get out of it? no free house for the rest of his days for sure.

If you can get them to agree then you've got to factor in landlord gas check, insurance and repair costs with no income.

HB won't do unless it's a real tenancy - one which you'd evict her if they don't pay (Suspect some of these relative things are going to be pushed to the limit soon just to see who will actually evict and who is taking the piss)

No, as I say, I don't want HB. It's a rent free deal. I'd already thought of Gas check (My Uncle's Corgi/Gassafe registered) and yes I'd get Buildings insurance.

As I say, this is a long term deal. To another poster who said I'm trying to "do" my MIL, au contraire!! They are desperate enough to go to this crowd who'll buy it off them for 50k and rent them it back for a year. I think I'm giving them a better deal. I won't pay 90 K, the house is not worth it.

Their choice is

Sell to me and MIL has home for life

Sell to BMV crowd and be out after one year.

Fall into arrears and possibly be repo'ed and out on backside.....

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Well I can see a problem straight off.

Well your MIL's partner has a 50% stake in the equity in the house. If the house is worth, say £80k, then that equity is worth £35k, less costs of selling of course. And you are offering him half of £30k. Why would he wish to accept such a deal?

Be very careul. You haven't mentioned Capital Gains Tax. Whose name do you anticipate the deeds going in? Your name? In which case you may have a CGT liability on selling. This is a real minefield. I have a very similar scenario some years ago - be extremely careful.

I actully got sound advise some years ago from 'This is money forums'. And I did it correct with no CGT liability, but that was years ago. Be extremely careful. You need to look into gifting, trusts, trust deeds & all sorts. Be careful you don't end up with a noose around your neck. If you can figure it out, then good for you, but again can't see ex-partner accepting less than half of open market price.

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Be very careul. You haven't mentioned Capital Gains Tax. Whose name do you anticipate the deeds going in? Your name? In which case you may have a CGT liability on selling. This is a real minefield. I have a very similar scenario some years ago - be extremely careful.

I actully got sound advise some years ago from 'This is money forums'. And I did it correct with no CGT liability, but that was years ago. Be extremely careful. You need to look into gifting, trusts, trust deeds & all sorts. Be careful you don't end up with a noose around your neck. If you can figure it out, then good for you, but again can't see ex-partner accepting less than half of open market price.

As well as appointment with Bank manager, I also have appointment with solicitor. The in laws have accepted the offer. The reason MIL's partner is accepting is all to do with why they are splitting, he's been a bit naughty. Plus, he acknowledges she's lived there for twenty years + but he has for less than 10.

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Are the MiL and her partner married? If so, a good divorce lawyer could rip you an arsehole on the unfair disposal of assets. Even if they are not married, see this from a government advice website:

"Housing rights at the end of a relationship

At the end of your relationship, a court can give you or your partner short-term rights to the home, for example:

* the right to stay in your home

* the right to come back home to get your things

* the right to stop your partner from coming into the home.

If your partner has been violent to you, you might need help to make sure you are safe in your home, or have a safe place to stay.

For more information about help you can get if your partner has been violent to you, see Domestic violence.

A court can also make long-term arrangements about housing in certain cases where there are children.

If you are thinking of going to court about your housing rights after the breakdown of your relationship, you should consult an experienced adviser, for example, a family law solicitor or at a Citizens Advice Bureau. To search for details of your nearest CAB, including those that can give advice by e-mail, click on (New window) nearest CAB.

Rights to the home for owner-occupiers

If you and your partner are owner-occupiers, it's possible that only one of you is the actual owner of the property. If your partner is the sole owner, you may have no right to stay in your home if your partner asks you to leave.

However, if you have children, you can ask the court to transfer the property into your name. The court will only do this if it decides it is in the best interests of your children.

If you don't have children, you may be able to claim a financial interest in your home if you can show you contributed financially by, for example, paying for improvements or towards mortgage repayments. If you have a financial interest in your home you might be able to stop your partner from selling it. You'll need to get legal advice about this. You could get help with legal costs.

If you do own your home jointly with your partner and you decide to leave, you should take steps to protect your right to go back there if you want to. You will also need to protect your share in the value of the home by making sure that your partner does not sell it without your knowledge. You will need to get legal advice about this. You could get help with legal costs.

For more information about help with legal costs, in England and Wales see Help with legal costs and in N Ireland, see Help with legal costs"

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Duly noted. No they are not married. He is still living there, I've told them how much I'm willing to pay them, they both know how much they are getting. I'm being upfront with them. I've even told them to keep it on the Market as long as they can up to completion in case someone is daft enough to give them 80 k or so for it, but then MIL will have to move. I don't see how my offering them both a fee for their property lower than what an EA markets it for is dodgy in anyway-most people on this website advocate this!!!

They are both of sound mind and I've been upfront about this. It's an offer, if they can get a better one then fine!!!

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  • 150 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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