Further to my question a few days ago
http://www.theanswerbank.co.uk/Law/Question1471147.html
I have been doing a bit more thinking.
How is this for a plan?
My son moves back in with us and after a year he can apply to buy the house with us as co-tenants.We keep the right to buy and discount under this arrangement so he applies to buy the house under the 'right to buy' law.
I have already established that we do have the right to buy , as it was transferred to the housing association, from our previous council tenancy of the same house. The discount is the maximum of £77,900, the house is valued at £162,000 so £84,100 mortgage.
He gets the mortgage which works out at £100 a week. After the mortgage we will no longer be housing association tenants but tenants of my son.
We then tell the Pension credit dept that our landlord has changed and is no longer the housing association but a private landlord ( my son)
We then claim housing benefit as private tenants . The LHA for my area is £123 a week for a 1 bedroom house, which is what we are entitled to claim as a couple. But this more than covers the mortgage of £100 a week.
Any one see a problem with this?
From what I see we get a free house for life and my son gets a £162,000 house for nothing as long as we live (as we will use the housing benefit to pay my sons mortgage) ,after we both die my son just has to keep paying the mortgage to get a house which should be worth around £250,000 .