Social housing and inheriting a share of a house

[howdoesitworkthen]

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.

MPs often have quite a low salary but then have expenses top ups, which increases their income but they don’t need to declare it.

It would also cost the council time and money to take someone to court and evict them and it’s often just easier letting them stay.

I know a few people who live in a council house but have a buy to let mortgage on another property which they rent out.
The private rent they receive pays for their rent and buy to let mortgage.
They’re not allowed to do it and meant to declare it but don’t as even if they get found out the council probably won’t do anything.

And prepared to facilitate fraud.

I live in a HA property too and you’re breaking the contract by part owning another property. I am in the same situation as you and when my parents pass on, the house will be sold so that I can get my share and actually put it towards a house of my own. You cannot own a property when you’re living in a HA house. Even partly.

This

You need to see a solicitor as there will be Inheritance Tax implications.

Don't put it in your sister's name only that's stupid then you lose all rights. If you have no experience of being a landlord and the standards that need to be kept and repairs,breakages,insurances,boiler covers, possibly bad tenants that wreck the place or stop paying rent and the list goes on then I wouldn't do it because it's a hell of a lot of stress and your lucky to break even most months. Best to sell the house and half the money between yous and not end up creating bad feelings because this one wants this the other wants that. But if it's like our grandparents the house was sold so both could get better care and still do because nobody was bothered about the money we just want grandparents to be as comfortable as possible

Would it be possible for you to live there and pay your sister half the market value of the rental price? And both you and her would then be responsible for 50%of the maintenance etc?

I’m a Landlord.

Do not become a landlord unless you have researched the responsibilities and legal issues you need to understand.

Landlording is not not for amateurs (I’m not suggesting you are) but there is a lot more to it than ever meets the eye.

Do your due diligence very thoroughly before you embark on a rental plan. It’s not all it’s cracked up to be. Believe me, I know.

Why do people think that social housing is means tested?. Anyone can live a social housing property if they are allocated. The deputy leader of the RMT is on £80k and lives in a council flat. Taxes don't subsidise HA properties, yes they can subsidise housing benefit but those not on UC pay their own rent. These rents only look low (subsidised) as they are compared to vastly inflated private rents.

You can move in there pay rent to your sister, or sell your share of the house, it can also go as a forced sale if ye can't decide

Our will states that the house is to be sold and the proceeds split.
It might be worth having a proper discussion with your sister and mum, to make sure that you are all on the same page. If your tenancy states thar you can't own another property,the decision is made for you. You will need your half to buy a property, which you can then leave to dc. Your sister can buy a rental property if she wishes.
The idea of carrying on renting out the family home for decades sounds like a quick way to trouble to me.

And with regard to inheritance tax, I think that if the property was jointly owned and passed to your mum from your dad, you get double the allowance. Legal advice needed!

MPs often have quite a low salary but then have expenses top ups, which increases their income but they don’t need to declare it.

A basic MP salary is 86.5k which I'm not sure can be described as low ....even by MN standards!!

No that’s definitely not low! Lol but I remember in school someone saying that on paper MPs don’t get that much of a salary because most of it is classed as expenses.

There was a programme or an MP said that they could live on £10 a day like those on benefits and in the newspaper there was a list of expenses they get on top of their salary.

So I maybe wrong but I’ve always thought that on paper their salary looks ok but not great but then they get lots of extra money on top.

I can't see that it would have any impact on your HA home, unless your tenancy states that your income can't go over a certain level. I don't think that's normal though.

Most assured tenancies state you cannot own/part own another property as it’s classed as fraud. Income doesn’t come into it.

That’s absurd. That someone who manages to get allocated a tax payer subsidised tenancy should chose to keep it even if their circumstances change.

There are months long waiting lists for social housing for women in hostels with their children who have escaped domestic violence.

social housing should be a safety net for people who need it - not a lifestyle choice.

I'm a HA tenant, and I inherited half an uncles house and then my dads house.

I sold both, and it had no impact whatsoever on my HA tenancy. It's only before being given a tenancy that this matters.

It would have had an impact on any means tested benefits, but I've never claimed them anyway.

I did sell the properties though.🙂

Its always the same on here people always go.on about it being tax payers funded ( like social.housing residents don't pay tax ) and subsidised ,they have no real.clue how it works and just make it up.in their head
There was one thread a few years ago asking if social.housing tenants actually paid rent 🙄

There was also a thread years ago that said ALL social housing tenants got their TV licence paid for them.

Shame the Tories gutlessly backtracked on means testing social housing like they do everything else.Every single social housing unit in the country should be audited before any more are built, too many are occupied by people who obtained them under false pretences which has directly lead to the current housing crisis affecting those in the private rented sector

@Blackbyrd Well my husband is 73 and disabled and we live in a one bedroom flat We have to sleep separately and he sleeps in the living room. Do be careful what you wish for cos we might end up with a bungalow then you will have one more thing to be jealous of.

What has led to the housing crisis is things like what happened at Balfron Tower and Bridport House which i bet you know fuck all about.

AND

The Elephant and Castle neighbourhood is being physically, socially and ethnically transformed. This started with the demolition of the Heygate estate, a classic for stigmatised perceptions of council housing and the people who live in it. As the local 35% Campaign has meticulously documented, a succession of promises to Heygate residents were broken to arrive at a situation where 1,214 council homes were demolished, to be replaced with 2,704 new homes, of which only 82 (3%) are for social rent. The HA partner was London and Quadrant. To be eligible for the cheapest one-bedroom home built by them on the Heygate site, people needed a minimum household income of £57,500. The average household income in that part of Southwark is £24,324

I take it you can do simple maths!

One minute SH tenants are too thick to understand Covid restrictions the next we are all criminal masterminds Make your minds up!

I don't blame you for maximising your own personal arrangements, but that doesn't sit well with me. You pay a less than commercial rate for your rent while receiving full market rent. It shouldn't be allowed. But hey, don't hate the player, hate the game.

Owning the house together and renting it out doesn't make sense, OP. Your sister is much older than you and will probably die first. When she does, is she leaving her half of a house to her children or just the rental income? What happens when work needs to be done? You don't even live near to the house - you wouldn't be able to look after it.

And then later when you die, your own children will inherit your half? Can't you see how difficult that would be for everyone?

But also, it's your decision as much as hers as to what happens to your inheritance. She has no right to influence your decision.

Can you buy a house in your area for £250,000?

I'm pretty sure it was right to buy and then not building enough replacement social housing that led to the shortage...?