Hi All -
I would like a little advice please as to the following scenario / circumstance -
My partners father has had his council house for 43 years - he is now elderly (72 years and he remains in good health), during most of these 43 years as a tenant he was in employment and paid full rent - when he stopped working he moved onto receiving housing benefit and essentially the rent is now paid for him.
Over dinner last week he asked us why we didn't consider buying the house as he would be entitled to a very large reduction in the value price - his rational was that he could have bought the house 3 times over in all the years he paid rent !!
At first we didn't think much of this, but after making initial basic enquires the property price of the house is estimated at around £70,000 - he would qualify for a 70% discount - meaning potentially the house could be purchased for just £21,000.
Do any members know if tenants are able to purchase their homes with the support of family (ie in this instance the tenants daughter and me, her partner). ??
My partner is the only child to the tenant (her dad), therefore we don't have to worry about other family members wanting to buy it and we have the full backing of him to do so - I have mentioned it to people at work and naturally the overwhelming response has been "do it as quick as possible" due to large discount available. Our thought process would be not to buy this with a view to sell on for profit, it would be for in later years when the inevitable occurs (partners father passes), we would move into the family home where my partner grew up.
Please can i have peoples thoughts - i appreciate these questions do often stir peoples opinions and emotions.
I would like a little advice please as to the following scenario / circumstance -
My partners father has had his council house for 43 years - he is now elderly (72 years and he remains in good health), during most of these 43 years as a tenant he was in employment and paid full rent - when he stopped working he moved onto receiving housing benefit and essentially the rent is now paid for him.
Over dinner last week he asked us why we didn't consider buying the house as he would be entitled to a very large reduction in the value price - his rational was that he could have bought the house 3 times over in all the years he paid rent !!
At first we didn't think much of this, but after making initial basic enquires the property price of the house is estimated at around £70,000 - he would qualify for a 70% discount - meaning potentially the house could be purchased for just £21,000.
Do any members know if tenants are able to purchase their homes with the support of family (ie in this instance the tenants daughter and me, her partner). ??
My partner is the only child to the tenant (her dad), therefore we don't have to worry about other family members wanting to buy it and we have the full backing of him to do so - I have mentioned it to people at work and naturally the overwhelming response has been "do it as quick as possible" due to large discount available. Our thought process would be not to buy this with a view to sell on for profit, it would be for in later years when the inevitable occurs (partners father passes), we would move into the family home where my partner grew up.
Please can i have peoples thoughts - i appreciate these questions do often stir peoples opinions and emotions.
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sorted byI assume your sister already owns the council house, in which case you do not have to be present when she signs her will in front of witnesses.
If she is only a tenant in the council house then she is unable to gift it to you in her will as the house will be returned back to the council’s possession upon her death.
Speak to a solicitor, there are benefits and pitfalls, rather than take advice from a stranger on the internet, on probably one of the most expensive purchases you will ever make, do it properly
Most solicitors will give you 30 minutes free, but even if you have to pay, the £50-100 you spend could potentially save you thousands.
Speak to a solicitor who specialises in this type of thing
We have no silly plans of buying it and turfing him out so it wouldnt matter but we would prefer the house to be in our name at some point if we were the ones that had financed its purchase.
also a bank will happily issue a joint mortgage to him and your partner if this is what is required.
been there....done that
You do need to get professional advice as there would be other concerns such as death and subsequent sale (discount repayment etc), dad moving into care and the councils right to sell assets to pay for care etc etc.
Good luck as its a great start to the property ladder.
The house was in mine and my mums names. Tenant has to be on the deeds, my mother never contributed towards the purchase. You can transfer the deeds after 5 years. I just wrote into the deeds that my mum could out live her days there rent free, just incase something happened to me.
One is if they pass away within a certain time money has to be repaid.
I believe you also have to show that the person buying [i.e. the person who will benefit, not the homeowner] has lived there for a certain number of years.
Our intention would be for him to live in it as he does now. However when he did pass away we would move into it, sell our own current property (which we do have a mortgage on) - and with the equity we have in our own/current property by buying the council house we would effectively be mortgage free due to the cost it would have been bought at. I know it sounds very clinical but the discount on offer is a once in a life time discount.
I should also have mentioned earlier we are not latching onto any kind of scam/freebie - my partner is 37 years old and for approx 10 years she herself contributed to the rent costs at this council property before we bought our own house together a few years ago.
Would a financial adviser be the person to offer sound advice / or would it be a solicitor - im thinking a solicitors advice would be costly?
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I'm not sure he would get a mortgage as he's 72 years old and his income now is not very high.
We were hoping to look at the option of getting a second mortgage to purchase the property - if this would be problematic my dad has said he would be willing to assist us in purchasing the property.
I also believe that the council property has to be the only home, so as you have another property I think this could be an issue
I think only he, in his own right can buy. If he can't get a mortgage then maybe you could gift him the casj but as to you getting a mortgage to buy it - I donot think this is possible. Maybe someone who knows more about this may be able to advise. What would happen if you actually could get a mortgage to buy it then for some reason you could no longer pay it? He would lose his house.
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Lad who works for me was put on his parents tenancy incase he decides to buy in the future
This was about 3 years ago
Each area will be different no doubt
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I doubt your father in law would get a mortgage at that age.
Housing shortages all over & yet the council houses are still being sold off!!
No council tenant should have the right to buy, no matter how long they have lived there! If you can afford to buy a house, you shouldn't be in housing that is meant for people who cant afford to buy or rent privately!
Makes me sick when i go round some of the local estates to me & see Range Rovers & Jags parked outside council properties, why should they get cheap rent when they can afford £50000+ cars.
Hadnt thought of this option thanks.
Think i will get some legal advice before going through any formal channels.
Thanks to all there has been some valuable info.
Whilst I agree to a degree, the idea of right to buy was they were supposed to build new social houses, Sadly that hasn't happened.
Another thing, Social housing gives people some security with fair rents etc.. Gives you some time to establish yourself, Remember not everyone who lives in Council houses are on benefits.
The right to buy scheme as been heavily abused by people buying to let.
Don't hate the player though, hate the game.
best to look into the legal aspects first, but apart from that is looks like a no brainer, go for it.
unbelievable.
personally I don't agree to the whole RTB thing but hey, if its allowed, why not.
The only person that can buy the house would be the tenant or any family member that has lived there within the past 12 months.
There's no way she would be able to get a morgage given her age and income (she only works part time and earns next to nothing) so our only option is to gift her the cash and she pays for the house in full.
and why not. good on you Aiden. hope it works out for you.
I think this is similar to our circumstances - although if im honest i dont have £21k in the bank to buy the property outright, therefore financially i would need to raise the amount via releasing equity in the property we live in. Ultimatly it would mean buying a 70k property for just 21k and despite some people on here stating how its morally wrong, im pretty sure most people (whether they care would admit it or not) would think this is a no brainer.
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Thanks, Enigma.
Hi there Justanothercid - just read your comment. What would the benefits be please for taking out a bank loan as apposed to taking out a second mortgage? I havent consider this as an option. From a financial point of view my personal mortgage is with Nationwide therefore i was considering approaching them about what options were available.
I would assume a bank loan would have a higher rate than a mortgage?
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Sucessions rights to the tenancy would cancel the rtb disxount as one tenancy is endng and a new one starting.
My advice is to get the 21k, give it to him and get him to buy it.
I dont believe in rtb hence this "housing crisis".
Good luck
Your dad has to get the mortgage himself.
second.... you already own a property, greedy or what ?
third.... if he becomes ill property goes for support of his care.
fourth... your wife cannot be on the purchase, she doesn't live there.
fifth if he dies within five years you cannot benefit.
sixth when he dies it's part of his estate.
seventh... once bought he will lose housing benefit and maintenance of property.
as for 'everyone does it'... myself and my ex didn't and there was a lot more money potentially profit/ involved on her father's four bedroomed semi.
spot on, Council housing are for those in need of a home. Scotland and Wales have stopped the sale of those homes.