1. Laylabud

    Laylabud Registered User

    Sep 7, 2007
    111
    Kent
    I still lived at home with my parents in a council rented house, i was not married but engaged saving up to buy a property, My Dad died very suddenly 10 years ago so that left Mum and I to struggle to pay the rent etc. At that time my now Husband, Mum and I went in for the right to buy scheme, which we now own the lease on the property. I have paid the mortgage for the last nine years and Mum's name is on the lease. We now find ourselves in the position that Mum has AD and the assessment unit she is in want to move her on to an EMI nursing home, does anyone know or can advise me if my mum's name being on the lease will be classed as being part of her assets, despite the fact that Mum has not paid any of the mortgage but has helped paying some of the utility bills?

    Thank you
     
  2. Brucie

    Brucie Registered User

    Jan 31, 2004
    12,413
    near London
    I may be incorrect in saying this but if your Mum's name is the only one on the lease then legally, the place is hers alone.

    It is a difficult situation for someone else to give advice on, without more information.

    Do you have an Enduring Power of Attorney for your Mum?

    I suggest you phone the Alzheimer's Society Help Line and ask for the legal specialist there, who may be able to advise you on your questions. Citizens Advice might be helpful as well.
     
  3. Laylabud

    Laylabud Registered User

    Sep 7, 2007
    111
    Kent
    Hi Bruce

    In answer to your question, there are 3 names on the lease and yes i do have Enduring Power of Attorney for Mum
     
  4. Bristolbelle

    Bristolbelle Registered User

    Aug 18, 2006
    1,847
    Bristol
    Our situation........

    is that we had our oown house and my Mum was in a council house. She was entitled to a £30,000 discount if she bought the house in her soul name. We were worried about these implications and we had to get a solicitor to write a special "deed of trust" which pointed out that although Mum was legally the owner we had actually used the money form our old house to purchase tyhe property it alwso included clauses saying neither she nor we could sell the house without the others consent, and if we predeceased her she would have the right to sty in her grany flat if new owners took over the house etc. It was pretty comlokicated and we had to get it all done when she was still "compus mentis". Now I'm not saying every case is the same but that was the advice we were given when we went in for a "house share". I
    Good luck I'll be interested to see how you get on.
     
  5. Brucie

    Brucie Registered User

    Jan 31, 2004
    12,413
    near London
    Phew! That is good news.:)

    I would therefore still call the Help Line, with that information, to get pukka advice.

    Do you know if the lease is framed as Tenants in Common? That information would also be useful to be able to tell.
     
  6. Laylabud

    Laylabud Registered User

    Sep 7, 2007
    111
    Kent
    #6 Laylabud, Oct 2, 2007
    Last edited: Oct 2, 2007

    No it is worded that we are joint tenants

    Thanks
     
  7. jenniferpa

    jenniferpa Volunteer Moderator

    Jun 27, 2006
    39,439
    #7 jenniferpa, Oct 2, 2007
    Last edited: Oct 2, 2007
    One important thing to remember for your peace of mind is that even if the Local Authority attempted to consider the 1/3 of the house your mother owns their valuation must be realistic: that is the value they assign to that one third must be obtainable on the open market. Now I don't know about you, but a 1/3 share of an occupied house doesn't seem a very attractive investment to me. Now they may well try to say "oh the house is worth £150000, so 1/3 is £50000" but there is no way you could find a purchaser willing to pay that. However, they are very unlikely to come straight out and admit this - you will have to be both firm and clear with them, and you'll probably need professional help.

    There was a moneybox program about this I think - I'll see if I can find the link

    I can only find the text link which isn't that easy to read http://news.bbc.co.uk/nol/shared/spl/hi/programmes/money_box/transcripts/03_5_19.txt

    Incidentally, not to pry but if you're 60 or older the house will be disregarded anyway.
     
  8. Laylabud

    Laylabud Registered User

    Sep 7, 2007
    111
    Kent

    Sadly both my husband and i are in our forties and Mum is 80

    Thanks for your help and link, i will take a look
     
  9. jenniferpa

    jenniferpa Volunteer Moderator

    Jun 27, 2006
    39,439
    FYI
    The relevant section of the Department of Health guidelines referred to in the program is Page 43 Joint Beneficial ownership of property in Charging for residential accommodation guide (CRAG): April 2007 (CRAG) (available http://www.dh.gov.uk/en/Publication...tions/PublicationsPolicyAndGuidance/DH_073650)

    This is part of it

    "Where an interest in a property is beneficially shared between relatives, the value of the resident's interest will be heavily influenced by the possibility of a market amongst his fellow beneficiaries. If no other relative is willing to buy the resident's interest, it is highly unlikely that any "outsider" would be willing to buy into the property unless the financial advantages far outweighed the risks and limitations involved. The value of the interest, even to a willing buyer, could in such circumstances effectively be nil. If the local authority is unsure about the resident's
    share, or their valuation is disputed by the resident, again a professional valuation should be obtained."

    In other words, if you and your husband weren't prepared to buy her share, no one else is likely to be willing to either.
     

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