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Clare
Clare, Solicitor
Category: Law
Satisfied Customers: 33538
Experience:  I have been a solicitor in High Street Practice since 1985 with a wide general experience.
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Hi This is a bit long winded. Basically I'm considering

Resolved Question:

Hi
This is a bit long winded.
Basically I'm considering giving my Grandparents about £50,000 to buy their council house. They've lived there for about 30 years so I believe are eligible for significant discount, possibly up to £77,000, which means my £50,000 would be enough to buy the property outright. Q1. Is that legal for me to do?
Q2. Possibly a deal breaker, how would this affect the benefits they receive? I understand they wouldn't be able to claim housing benefit, how would I find exactly how their benefits would be affected?
Q3. Would it be straightforward to then put it in a will that the property will be left to me when they die? Could a solicitor come to their house and get that documented legally?
Thanks
Dave
Submitted: 2 years ago.
Category: Law
Expert:  Clare replied 2 years ago.
Hi
Thank you for your question.
My name is Clare
I will do my best to help you but I need some further information first.
What benefits do they actually receive?
Clare
Customer: replied 2 years ago.

Hi

Sorry for the delay in replying, not sure if this question is still active? If it is;

Can I scrap the 2nd question in my original post, I think the benefits issue can be dealt with without legal advice.

But I am still interested in points 1 and 3;

Q1. Is it legal for me to give my grandparents £50,000 to buy their council house? - I believe this is perfectly legal from what I can gather.

Q3. Would it be straightforward to then put it in a will that the property will be left to me when they die? Could a solicitor come to their house and get that documented legally? - Also, is there anyway to transfer ownership other than leaving it in a will? - I don't believe you are allowed to sell the property within 5 years, but not sure if "gifting" the property back to me would get around that?

Thanks

Expert:  Clare replied 2 years ago.
Hi
There is no reason why you should not finance the purchase in this way for your grandparents
The best way of protecting your investment is to ask your Grandparents to sign a Declaration of Trust that states that whilst they legally own the house they are holding it on trust for you.
This is perfectly acceptable and will ensure that in the event of their deaths the property is secure
The Deed can also provide for the Transfer of the property into your name after five years
I hope that this is of assistance - please ask if you need further details
Clare
Customer: replied 2 years ago.

Thanks.

That sounds like a good idea. How does the declaration of trust sit in relation to the will?

Just asking because if we signed a declaration of trust to that effect but the will was lost / ambiguous and was challenged by another relative, do you know what would take precedent / priority?

Expert:  Clare replied 2 years ago.
Hi
The Declaration of Trust means that the property would revert to you outside of the Will
Clare
Customer: replied 2 years ago.

I would just to clarify a couple things if I may.

If the Declaration of Trust states the property would revert to me, but my grandparents had a last minute change of heart on their death bed (Hypothetically) and decided to re-write their will to the effect of giving the property to another relative, which document would take legal priority in that situation? The Declaration of Trust or the Will?

Thanks

Customer: replied 2 years ago.

This question has been marked as finished? But I am not finished?

Expert:  Clare replied 2 years ago.
Hi
The Declaration of Trust sets out the ownership;of the property.
Provided they have legal advice before hand that reminds them that they have "invested" the discount and still signed the Declaration then it cannot be challenged
Clare
Customer: replied 2 years ago.

Thanks. I think that clears that up.

One final question, sorry;

At what stage of the process can the Declaration of Trust be signed. Before they take ownership of their house i.e. whilst they are filling out their right to buy forms for the council? Or is it something that can only be signed once the process with the council is complete and they are in full ownership of their property?

Thanks

Expert:  Clare replied 2 years ago.
Hi
It cannot actually become valid until the purchase is completed - usually you would have this prepared around the time of completion
Clare
Clare, Solicitor
Category: Law
Satisfied Customers: 33538
Experience: I have been a solicitor in High Street Practice since 1985 with a wide general experience.
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