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Council House Purchase - help

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Comments

  • charlesworth82
    charlesworth82 Posts: 313 Forumite
    First Anniversary Combo Breaker
    Out,_Vile_Jelly wrote: »
    The value of the house isn't relevant; what's important is that your mum has a secure tenancy and doesn't have to worry about maintenance costs. There is a lot to be said for that peace of mind when you're on a low income. You can't guarantee that the mortgage will always be lower than the current rent, especially given the financial uncertainty facing the country.

    She doesn't have to worry about any of the costs as I can cover them all. Mortgage would only be about 7/8 years. you can sell after 5 (make a big profit) in worst case scenario
    ‘It ain’t over 'til it's over’
  • charlesworth82
    charlesworth82 Posts: 313 Forumite
    First Anniversary Combo Breaker
    Barejester wrote: »
    Hi Charlesworth82, as to your specific question yes you'll attract the tax and fees associated with a second property if your interest in the property is greater than £40,000


    it will actually be less than 40k she would pay - any idea of the tax/fees etc. associated with less than>?
    ‘It ain’t over 'til it's over’
  • Mojisola
    Mojisola Posts: 35,557 Forumite
    Name Dropper First Post First Anniversary
    charlesworth82 wrote: »
    No - she covers it all herself.

    On a part time wage? Must be quite a well-paid job.
  • charlesworth82
    charlesworth82 Posts: 313 Forumite
    First Anniversary Combo Breaker
    Mojisola wrote: »
    On a part time wage? Must be quite a well-paid job.


    I think council rent is only around 350
    ‘It ain’t over 'til it's over’
  • Red-Squirrel_2
    Red-Squirrel_2 Posts: 4,341 Forumite
    charlesworth82 wrote: »
    She doesn't have to worry about any of the costs as I can cover them all. Mortgage would only be about 7/8 years. you can sell after 5 (make a big profit) in worst case scenario

    What if you lose your job, or, God forbid become ill, disabled or even die? It does happen.

    You're thinking about money as the only kind if value, but a home you can stay in forever, guaranteed to be affordable, where you can claim housing benefit if you can't pay, where you don't have to worry about maintenance, and where you will be rehoused to something more suitable if you become frail or have special requirements in the future, is incredibly valuable and shouldn't be thrown away just in order to leave an inheritance.
  • fairy_lights
    fairy_lights Posts: 9,220 Forumite
    charlesworth82 wrote: »
    Mortgage would only be about 7/8 years. you can sell after 5 (make a big profit) in worst case scenario
    Ahh. I see.
  • Red-Squirrel_2
    Red-Squirrel_2 Posts: 4,341 Forumite
    fairy_lights wrote: »
    Ahh. I see.

    Depressing, isn't it?
  • Barejester
    Barejester Posts: 27 Forumite
    it will actually be less than 40k she would pay - any idea of the tax/fees etc. associated with less than>?


    I'm not completely up on the details and someone much more knowledgeable than me would come along and explain I'm sure. If your share of the property is less than £40,000 you will not have to pay the additional Stamp Duty, however between you you'll still have legal/survey/mortgage fee's which you can get quotes for.


    I wanted to weigh in more on the consideration of looking at the whole picture and your Mum should consider what would be the best benefit for her in the long run - right now she has a home for life, if she pursues this she'll have an asset that she may or may not be able to afford to upkeep.

    She doesn't have to worry about any of the costs as I can cover them all. Mortgage would only be about 7/8 years. you can sell after 5 (make a big profit) in worst case scenario


    This however makes it seem like you're looking at this as a potential cash cow for your own gain and you're looking at a way to use your Mum's discount for profit/additional property, I apologise if that's a mischaracterisation.
  • BrassicWoman
    BrassicWoman Posts: 3,202 Forumite
    First Anniversary Name Dropper First Post Mortgage-free Glee!
    Red-Squirrel wrote: »
    Depressing, isn't it?

    and yet inevitable
    2021 GC £1365.71/ £2400
  • sunny1966
    sunny1966 Posts: 4 Newbie
    its an attractive proposition, but there are real risks as identified.

    i dont think you should decide on the potential profit you can make in say 5 years.....your mum will need somewhere to live and the secured tenancy that's currently offered at a reasonable rent is very reassuring.

    mortgage rates may very well increase but the risk is mitigated by the term time of the mortgage you suggest.

    if you mum is set on it, i'd do it but please dont think about any financial gain
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