# Buying second house,Social welfare implications?



## a25c (1 Oct 2006)

My wife and I are looking to buy our second house.Its my mothers house and it has a discounted tennant purchase price which will make it affordable for us to purchase.My question is that my wife is on dissability benefit the last four years ,are their any implications with the social welfare if we go ahead with this?


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## RainyDay (1 Oct 2006)

I'm not an expert , but I guess you'll need to give some more details. Is the disability benefit means tested? Are you planning on renting out the house? Are you borrowing to fund the purchase? If so, how much of the cost will be borrowed? Is your mother still alive and will she continue to live in the house?


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## a25c (1 Oct 2006)

it,s means tested but the last time was when she first went on it 4 years ago.My Mother will continue to live there and we plan to borrow the full amount.


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## ontour (1 Oct 2006)

Would the tenant purchase price not only be applicable to where the tenant purchases the house?  From reading your post you seem to plan to take advantage of the reduced price that would be available to your mother the tenant.  If the house had to go in to her name to avail of the discount, how would you get a mortgage on a property you would not own_


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## a25c (1 Oct 2006)

The bank are willing to put my mothers name on the mortgage as the third applicy.The council dont care where my Mother gets the money as long as it is her buying the house.


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## Molly (1 Oct 2006)

lenders will only approve a mortgage to purchase under the tenant purchase scheme to the tenant, in order for you  and your wife to fund the purchase,along with your mother you will have to also be registered as tenants of the property.


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## RainyDay (1 Oct 2006)

I'd suggest you contact whoever administers the means test (DSFA?) and confirm exactly what rules are applied in relation to investments/dependant relatives.


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## a25c (3 Oct 2006)

Thanks.....


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## liteweight (3 Oct 2006)

I knew someone who did this a good number of years ago. The woman had been left widowed and had a small income. She wanted to buy out her house, simply for the security she felt it gave her. At that time Dublin Corporation gave her a loan with the children acting as guarantor. In fact, her children paid the mortgage between them each month. The house had to be in their mother's name.


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## fobs (4 Oct 2006)

> The house had to be in their mother's name.


 
Which would imply she could decide to will this house to the cats home and the kids get nothing as in this case?


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## liteweight (4 Oct 2006)

fobs said:


> Which would imply she could decide to will this house to the cats home and the kids get nothing as in this case?



Yes but her kids did it for her, not for the inheritance. I'm sure if she left it to the cats home, the family could have contested the will and proved that they'd made the payments to the mortgage.


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