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View Full Version : House swap/rental advice needed



jennhall7
23-11-2005, 19:43 PM
Hi

I don't know if anyone can help me, so here goes.

In January this year my father passed away leaving my elderly mother on her own. The house next door to my sister came up for sale but mum was too distressed to cope with leaving one house and moving into another in one go. Therefore my son (who still lives at home with us) got a mortgage and purchased the house so we could move her in gradually. This we have now done and her old house has been on the market for a couple of months. However, due to the fact that it needs quite a bit of work done to it the only offers she has had have been much lower than hoped for, so we've come up with another idea.

My son would like to buy my mum's house and they have agreed that both houses are valued at the same price - £138,000. On first enquiries they can't just "swap" houses, they both have to buy and sell to each other which is going to cost a lot in stamp duty, legal expenses etc, neither of whom can afford it. Still with me? Good!

What we wondered is whether or not it would be feasible for my son to rent my mum's house and my mum to rent my son's? Bearing in mind that my mum is 82 years old and has an equity release loan of around £35,000 on her house. Although she's in good health at the moment there is the added thought that one day she might not be able to stay in her own home and might need to sell her house towards nursing home costs. How would that affect things if my son was living in that house???

Any ideas would be very welcome - even if it's just to tell me where I can get this kind of advice.

Jenn

MrWoof
23-11-2005, 20:43 PM
On the face of it, I don't see a problem but if Housing Benefit are involved there may be. I seem to recall this sort of thing being done many years ago with the object of Housing Benefit being used to pay mortgages, it was known as the 'Isle of Wight' scam if memory serves.

jennhall7
23-11-2005, 22:15 PM
No, there's no Housing Benefit involved. Mum receives attendance allowance and credit pension but my son works full time and can pay the mortgage.


On the face of it, I don't see a problem but if Housing Benefit are involved there may be. I seem to recall this sort of thing being done many years ago with the object of Housing Benefit being used to pay mortgages, it was known as the 'Isle of Wight' scam if memory serves.