Jun
13
Legal Advise Please?
By
My mother has various mental health issues. Her Social Worker has suggested Sheltered Housing as mum is very vulnerable. To do this my mum will need to sell her house and use this money to pay her rent etc. The house is in a very poor state of repair as my mum has not allowed any work to be done for some time. Because of this I am concerned that she will only get a percentage of the true value. Is it legal for her to sell the house to me for a token amount say £100.00 which would then allow me to take a secured loan, renovate the property and sell at a future date which will generate more capital for my mum? This Sheltered Housing has been suggested by her Social Worker who feels the best solution is to get rid of the house as quickly as possible ie below market value.
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5 Comments
June 15th, 2010 at 5:44 pm
hmmm, think about this. if you buy a property for 100, sell it for 200000, your profit is huge, which the taxman wants a big piece off, wiping out your true profit. (cap gains).better = you could attain power of attorney(if needed), get a mortgage and do the mods yourself, then sell. you would then pay tax on resell price less purchase price less cost of refurb, you (and her) will be better off.
June 18th, 2010 at 4:11 pm
Your theory sounds good……….in theory anyway.
Hard to give the best answer without knowing more.
Based on what you’ve said I believe your best solution at face value would be to leave the property in your mom’s name and try to generate the funds to rehab it as her power of attorney person or guardian.
If she is not legally competent to sign powers of attorney or anything else you could run into some problems there.
I advise you to consult with an attorney specializing in senior care and senior issues.
June 19th, 2010 at 6:18 pm
the social worker is sooo wrong – to be assessed for benefits the council look into savings etc – if they find out that your mum sold you the house cheaply – they will assess how much they think the property was worth – they will go by the current rate for properties in the area and take the average – they will then say that this is the amount your mum should have got for the property and therefore will take the amount into consideration when assessing your mum for benefits – your best bet is to let them assess the value of the property now – and then you buy it at the ‘going’ rate – this is totally legal and you will then have the property to do up at your leisure and then sell on – it will then be down to you how you distribute the money. You can try to keep it a secret that you bought the property but when they find out any monies paid to your mum will have to be paid back either by her or by you (they will come to you for the money because it will be looked upon as fraud) and it could be thousands………..You should go and see someone from ‘citizens advice’ they will give you a lot of information that is legal and binding
June 21st, 2010 at 8:31 am
I think you can buy your mother’s house
June 23rd, 2010 at 6:32 pm
As your mother has various mental health issues, I would
suggest firstly a meeting together with her Doctor. Your experience,
together with his advice are necessary. Sheltered Housing
may not be the answer. So many of these schemes nowadays provide inadequate support due to Social Service
cutbacks. Depending on feedback, then follow through with
possible Power of Attorney action, consulting with a reliable
solicitor.See if you could get free half-hour advice from the
solicitor.Then , with action suitable to fulfil needs , for Your
Mum’s health & happiness, & to your satisfaction.