Social housing and inheriting a share of a house

howdoesitworkthen · 2023-09-26T22:05:03+00:00

I'm living in a housing association home and have an elderly mother. She will leave the house about 500k to me and my sister. My sister already owns a house and suggested we rent out our parents house as a retirement income. I'm not sure if we could buy a home each if we sold and split. How does this work if you have a housing association assured tenancy and inherit part of a property.

Dotcheck · 26/09/2023 23:05

Would you rather use it to buy your own place?

Original poster

howdoesitworkthen · 26/09/2023 23:08

I think I would but my sister would like to rent it out and can't afford to buy me out.

OP posts:

Woollymonster · 26/09/2023 23:09

Does your social housing depend on income? I didn’t think it did.

Dotcheck · 26/09/2023 23:10

Personally, I would hate to be a landlord.
Perhaps she can invest the money in something else

Woollymonster · 26/09/2023 23:11

If you’d like to buy, there are lots of other factors to consider apart from the buying of a house, costs of repairs etc

Original poster

howdoesitworkthen · 26/09/2023 23:11

No it doesn't matter how much we earn but you can't have any other property, but I don't know about half a property especially as we can't afford to buy out my sister.

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Embarrassednamechangeadoddle · 26/09/2023 23:11

i shouldn’t think it would affect your tenancy in any way.

If you would prefer to buy a home with it you will have to have that conversation with your sister. Possibly it will have to be sold and she can use her half for an investment property if that’s what she wants to do. Or you use the rental income to cover your mortgage?

QueenCamilla · 26/09/2023 23:15

I'm not sure if we could buy a home each if we sold and split.

What?!
Strange how someone in social housing sounds as far removed from reality as "trustfund babies" do.

Original poster

howdoesitworkthen · 26/09/2023 23:18

If we stay in our home and rent out mums house we would both have the house to leave our children if we rent it out and use the income as a pension.

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MidnightOnceMore · 26/09/2023 23:19

howdoesitworkthen · 26/09/2023 23:11

No it doesn't matter how much we earn but you can't have any other property, but I don't know about half a property especially as we can't afford to buy out my sister.

You need to speak to a solicitor about your tenancy.

Babyroobs · 26/09/2023 23:21

Why are you thinking about this now ? Is your mum terminally ill or something ? What if she needed long term care and you ended up with no house to sell as it had been used to pay care fees?

QueenCamilla · 26/09/2023 23:26

OP, I'm pretty sure (not 100 % but 99) that any interest (share) in another property would terminate your social tenancy. I know it's definitely the case to receive the housing element of UC - I had to declare that my name is not associated with any other house or land in the UK or any other country.
I made sure an inherited house went to my brother's name only and when it was sold, I used my share of the profit to buy my own house (with a much smaller budget than you are looking at).

Original poster

howdoesitworkthen · 26/09/2023 23:33

QueenCamilla · 26/09/2023 23:26

OP, I'm pretty sure (not 100 % but 99) that any interest (share) in another property would terminate your social tenancy. I know it's definitely the case to receive the housing element of UC - I had to declare that my name is not associated with any other house or land in the UK or any other country.
I made sure an inherited house went to my brother's name only and when it was sold, I used my share of the profit to buy my own house (with a much smaller budget than you are looking at).

We don't claim universal credit but I was wondering if the house being in my sisters name would have to be an option.

OP posts:

Dotcheck · 26/09/2023 23:35

howdoesitworkthen · 26/09/2023 23:18

If we stay in our home and rent out mums house we would both have the house to leave our children if we rent it out and use the income as a pension.

But if you buy your own place, you could benefit from lower living costs and also leave a house to your children…?

Original poster

howdoesitworkthen · 26/09/2023 23:37

Babyroobs · 26/09/2023 23:21

Why are you thinking about this now ? Is your mum terminally ill or something ? What if she needed long term care and you ended up with no house to sell as it had been used to pay care fees?

If that was the case I would be her carer.

OP posts:

Domino20 · 26/09/2023 23:39

howdoesitworkthen · 26/09/2023 23:11

No it doesn't matter how much we earn but you can't have any other property, but I don't know about half a property especially as we can't afford to buy out my sister.

I think you'll find that the tenancy agreement requires you to occupy your HA property as your main home. This doesn't mean you can't have another property or share in another property. However, it's pretty much useless asking here because no-one has access to your specific tenancy agreement so can't advise you correctly.

Tbry · 26/09/2023 23:40

This reply has been withdrawn

This message has been withdrawn at the poster's request

Domino20 · 26/09/2023 23:43

OP. Please don't be spooked by some of these comments. The only thing that counts is the specific terms of YOUR tenancy and not somebody else's experience

Schoolmumeroo · 26/09/2023 23:44

You need to check your contract as there are various schemes available. You may have a lifetime tenancy or plenty newer contract involve renewals every 5 years including financial assessment. Do you not have/ want to consider right to buy?

76evie · 26/09/2023 23:44

Money does strange thing to people. I think putting it in your sisters name only has the potential for you to end up with nothing.

Does your tenancy state you can’t own another house? I thought you couldn’t apply and accept social housing if already owned another property but doesn’t cause a problem once your tenancy starts and you For example inherit half a house.

Original poster

howdoesitworkthen · 26/09/2023 23:45

Schoolmumeroo · 26/09/2023 23:44

You need to check your contract as there are various schemes available. You may have a lifetime tenancy or plenty newer contract involve renewals every 5 years including financial assessment. Do you not have/ want to consider right to buy?

Right to buy is for council housing. We have an assured tenancy with a housing association so basically a life time tenancy.

OP posts:

Totaly · 26/09/2023 23:46

I think as neither of you can afford the buy out the other - you need to sell.

Plus, you can’t just give away your share to your sister, that’s deprecation of asserts - also when money is involved people change. If you sign it over then there’s a chance she could take it all - and legally she can. You would put yourself in a position where you could end up with nothing. You couldn’t take her to court because you would have to admit to fraud.

If you have children, perhaps you would be better off leaving the cash to them instead - you could keep your HA home .

Alternatively you could put the house in trust and rent it out - the trustees own the house, this could be left in trust to your children etc

Speak to a solicitor. It seems you want your cake and eat.

converseandjeans · 26/09/2023 23:46

Surely it's better to sell & use your share as a huge deposit & eventually have your own property. Once you're retired it would hopefully be paid off & you have no rent.

It's different for your sister as she has a property. It's not fair for her to essentially block you getting on the property ladder (for her own benefit)

Presil · 26/09/2023 23:47

Check the tenancy agreement. It will all be in there. Pointless asking us.

Most HA properties an occupier can inherit if they don't own anything else. So your sister won't get anything. You might. You might be able to buy/rent it out, depends on the tenancy agreement. Your sister won't be able to. You might not either - rights vary with succession. How do you even calculate it's worth £500k if it's never previously been sold?! Entire conversation is a bit mad.

Original poster

howdoesitworkthen · 26/09/2023 23:53

Presil · 26/09/2023 23:47

Check the tenancy agreement. It will all be in there. Pointless asking us.

Most HA properties an occupier can inherit if they don't own anything else. So your sister won't get anything. You might. You might be able to buy/rent it out, depends on the tenancy agreement. Your sister won't be able to. You might not either - rights vary with succession. How do you even calculate it's worth £500k if it's never previously been sold?! Entire conversation is a bit mad.

I live in a housing association property ,my mum has her own house.

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