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  • FIRST POST
    • kymmie
    • By kymmie 12th Oct 17, 2:06 PM
    • 32Posts
    • 10Thanks
    kymmie
    landlord offered to sell house to us
    • #1
    • 12th Oct 17, 2:06 PM
    landlord offered to sell house to us 12th Oct 17 at 2:06 PM
    Hello, I'm looking for a bit of advice

    Bit of a back story, I've lived in my bungalow now for 6 years, I only expected to live here for 6 months until something more permanent was found but it never happened. Last December the landlord sent me a message stating he was looking into selling the property as he has moved out of the area and he simply cannot afford to keep up with the maintenance it requires.
    He offered to do a transfer of deed with an agreement to pay him a certain amount each month until the price agreed is paid. At the time I was scared to agree to anything as I was just about to be discharged from my bankruptcy.
    Then in April I received a letter with an eviction order and I went through the process of going to the council with it and being told they cannot help me until its all been taken to court (which is normal protocol in my area for eviction). Unfortunately my landlord cannot afford to go through all of the court proceedings and sent me another text in September stating he doesn't have a choice but to drop the eviction and he will need to sign a new agreement.
    However I've decided to start looking into buying again as I'm nearly a year since my discharge and things are going smoothly.

    Basically the property I'm in is shared ownership and the landlord only owns 10% of the property (with the rest being owned by the local council). It does need a lot of work doing to it as there is damp, and its in desperate need of double glazing. I am thinking if I go ahead with it, I would be able to give the house the tlc it deserves without bumping up the value of the bungalow for the landlords benefit if he did indeed sell in the future.
    Realistically my question is; If I buy his share would I be able to use the share to put a deposit or move to another home in the future?

    My thinking is to buy his share, install double glazing, clear the damp and sell the share to move to a bigger home.

    Another thing which has got me dreadfully worried is obviously this needs to all be agreed via solicitors to draw up a contract to transfer the deed and he's agreed the payments wont be any more than my rent is currently. Does anyone know what range the solicitor would charge to draw up these contracts?

    It's a serious decision to make and I want to make sure I'm going in with both eyes open!
Page 1
    • Comms69
    • By Comms69 12th Oct 17, 2:22 PM
    • 1,227 Posts
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    Comms69
    • #2
    • 12th Oct 17, 2:22 PM
    • #2
    • 12th Oct 17, 2:22 PM
    All sorts wrong with this I fear. I mean You'll be paying him back and presumably paying the rent to the council too?


    Is it even worth it when you account for all the work to be done?
    • AnotherJoe
    • By AnotherJoe 12th Oct 17, 2:31 PM
    • 7,671 Posts
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    AnotherJoe
    • #3
    • 12th Oct 17, 2:31 PM
    • #3
    • 12th Oct 17, 2:31 PM
    I wonder if it’s allowed let out one of these shared ownership properties

    Anyway it makes no sense to me to be paying 100% maintenance costs when you own 10%. Take the money you’d spend and lose 90% of and spend it on 100% of your property instead.
    • teddysmum
    • By teddysmum 12th Oct 17, 3:42 PM
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    teddysmum
    • #4
    • 12th Oct 17, 3:42 PM
    • #4
    • 12th Oct 17, 3:42 PM
    I believe that in the case of shared ownership, the resident has full responsibility for all repairs and maintenance, so you would be spending money to increase the value of the council's majority share,which they could then sell at a profit. The council could tell you what needs doing and councils have a reputation for being 'generous' when spending other people's money.


    This sounds too involved and very expensive, but ,if the landlord can't afford to take you to court, you can sty put until he makes a move, giving you chance to find a better option.


    I think you would have problems selling a share as small as just 10%,too.
    • Norman Castle
    • By Norman Castle 12th Oct 17, 7:08 PM
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    Norman Castle
    • #5
    • 12th Oct 17, 7:08 PM
    • #5
    • 12th Oct 17, 7:08 PM
    With only 10% ownership of either you or your landlord if you spend 5k on windows you will only own £500 of them. Regardless of affordability 100% of maintenance costs on a property which needs expensive repairs and is only 10% owned is a poor investment.
    Don't harass a hippie. You'll get bad karma.
    • HampshireH
    • By HampshireH 12th Oct 17, 8:03 PM
    • 255 Posts
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    HampshireH
    • #6
    • 12th Oct 17, 8:03 PM
    • #6
    • 12th Oct 17, 8:03 PM
    [QUOTE]
    !

    What's this?

    ANOTHERJOEView public profileSend private messageFind more postsView all thanked postsAdd to contacts

    I wonder if it’s allowed let out one of these shared ownership properties

    /QUOTE]

    Not normallly.... It's usually a condition of the agreement not to sublet.
    • Pixie5740
    • By Pixie5740 12th Oct 17, 8:50 PM
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    Pixie5740
    • #7
    • 12th Oct 17, 8:50 PM
    • #7
    • 12th Oct 17, 8:50 PM
    I donít think the private mortgage arrangement your landlord suggested is entirely kosher. In fact Iím surprise the council or HA allowed him to let out the property in the first place.

    There will be less hassle properties in better condition to buy than this one. Go and see a mortgage broker to discuss your options.
    Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.
    • kymmie
    • By kymmie 13th Oct 17, 11:24 AM
    • 32 Posts
    • 10 Thanks
    kymmie
    • #8
    • 13th Oct 17, 11:24 AM
    • #8
    • 13th Oct 17, 11:24 AM
    Thank you for all of your responses.
    Basically I have no savings whatsoever and I get help with my rent via housing benefit.
    The council are fully aware that he is letting the bungalow out to me and he is under strict rules so he cant actually make any profit from it so I'm paying way below any other private rented properties in the area.
    I'm more or less thinking it will be my only chance to step into the housing market and I could use the percentage that I would have as a deposit on a better house in the future.
    I have taken your advice on board when it comes to double glazing and improving the condition, as a couple of you have said, it would mean paying out for more than what I would end up owning of the property.

    I would think speaking to a mortgage broker to speak about my options, though with no deposit wouldn't this be a waste of their time?
    Last edited by kymmie; 13-10-2017 at 11:26 AM.
    • Pixie5740
    • By Pixie5740 13th Oct 17, 11:41 AM
    • 11,196 Posts
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    Pixie5740
    • #9
    • 13th Oct 17, 11:41 AM
    • #9
    • 13th Oct 17, 11:41 AM
    If you have no savings and rely on housing benefit how would you afford the costs of owenership such as fitting new windows, insurance, maintenance, etc?
    Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.
    • fairy lights
    • By fairy lights 13th Oct 17, 11:44 AM
    • 8,334 Posts
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    fairy lights
    It sounds like a terrible idea.
    You'd be taking on responsibility for a property you won't be able to afford the maintenance on, for very little (if any) return.
    10% shared ownership seems ludicrous and I can't imagine there would be a massive queue of people wanting to buy it when you decide to sell.
    • kymmie
    • By kymmie 13th Oct 17, 12:00 PM
    • 32 Posts
    • 10 Thanks
    kymmie
    When it comes to housing benefit I'm not relying on it to pay the full amount of my rent. The percentage which is paid to the council currently via the landlord, the rest of the rent is paid for via my earnings.
    It doesn't sound like the most ideal way to jump onto the ladder, other properties in my area with shared ownership seem to get jumped on pretty quick.

    When it comes to cost of being able to do maintenance, my partner has been offered a higher position in his line of work and would mean we will no longer need housing benefit and will have a money to put into the house.
    • Comms69
    • By Comms69 13th Oct 17, 12:03 PM
    • 1,227 Posts
    • 1,011 Thanks
    Comms69
    When it comes to housing benefit I'm not relying on it to pay the full amount of my rent. The percentage which is paid to the council currently via the landlord, the rest of the rent is paid for via my earnings.
    It doesn't sound like the most ideal way to jump onto the ladder, other properties in my area with shared ownership seem to get jumped on pretty quick.

    When it comes to cost of being able to do maintenance, my partner has been offered a higher position in his line of work and would mean we will no longer need housing benefit and will have a money to put into the house.
    Originally posted by kymmie


    But why THIS house, why not just save up?
    • aneary
    • By aneary 13th Oct 17, 12:10 PM
    • 799 Posts
    • 699 Thanks
    aneary
    When it comes to housing benefit I'm not relying on it to pay the full amount of my rent. The percentage which is paid to the council currently via the landlord, the rest of the rent is paid for via my earnings.
    It doesn't sound like the most ideal way to jump onto the ladder, other properties in my area with shared ownership seem to get jumped on pretty quick.

    When it comes to cost of being able to do maintenance, my partner has been offered a higher position in his line of work and would mean we will no longer need housing benefit and will have a money to put into the house.
    Originally posted by kymmie
    Yes but those 'other' shared ownership houses are probably new builds with lower maintenance costs and will be more than a 10% share.

    When your partner gets his new job set up a savings account and put the extra money (minus the HB you no longer receive) then look at building a better house.
    • xylophone
    • By xylophone 13th Oct 17, 12:13 PM
    • 23,633 Posts
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    xylophone
    If you saved a deposit and were eligible for a mortgage, could you buy the whole from the landlord and the council?
    • kymmie
    • By kymmie 13th Oct 17, 12:41 PM
    • 32 Posts
    • 10 Thanks
    kymmie
    To be honest all of your replies make perfect sense to me.
    I guess I feel obligated to buy this place as I've been here for so long and the landlord helped me when I felt lost so now I want to take him up on it.
    Although I know he just wants to get rid as he doesn't have the time nor the money to take care of the place himself.
    I'll come up with a plan for saving for a deposit once all of my finances settle down again, I want to thank you all for your honest opinions and responses.
    It doesn't sound the most logical choice, Which my partner did tell me last year but I needed to go over it all again to see if there was anything positive which could lie at the end of the tunnel.
    • xylophone
    • By xylophone 13th Oct 17, 1:02 PM
    • 23,633 Posts
    • 13,761 Thanks
    xylophone
    Would the council buy out the landlord?

    Would you then become a council tenant?

    Would you end up with a right to buy?
    • kymmie
    • By kymmie 13th Oct 17, 1:19 PM
    • 32 Posts
    • 10 Thanks
    kymmie
    As far as I have been lead to believe the council don't have any interest in buying the percentage back. This goes from when the eviction was in place and they asked if we could just buy the place ourselves, We then said the majority is owned by yourselves and the person we spoke with said the council aren't buying properties back.
    But if they did buy the percentage back, we should in theory become council tenants and have our own option with a right to buy.
    • Marcus-H
    • By Marcus-H 13th Oct 17, 4:11 PM
    • 73 Posts
    • 13 Thanks
    Marcus-H
    are you sure he is not sub-letting?
    Would be very surprised if a council would allow the property to be rented, since they own 90% of it!
    • kymmie
    • By kymmie 13th Oct 17, 7:28 PM
    • 32 Posts
    • 10 Thanks
    kymmie
    are you sure he is not sub-letting?
    Would be very surprised if a council would allow the property to be rented, since they own 90% of it!
    Originally posted by Marcus-H
    I'm confident he is not sub letting as I have all the utility bills in my name, including council tax, I've been on the electoral roll since 2011, and I've had to provide copies of all the tenancy agreements to the council as well when I started claiming housing benefit.
    He asked the council if he was able to have someone here before hand and they responded with not being allowed to gain profit from it. I mean if he was sub letting the house illegally I wouldn't be able to have everything written in my name?

    The landlord has never lived here, he inherited it from his late mother who originally brought 10% from the local council, Who passed away in the 90's. his daughter then lived here, then followed by myself.
    • CIS
    • By CIS 13th Oct 17, 7:51 PM
    • 10,114 Posts
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    CIS
    I'm confident he is not sub letting as I have all the utility bills in my name, including council tax, I've been on the electoral roll since 2011, and I've had to provide copies of all the tenancy agreements to the council as well when I started claiming housing benefit.
    They won't check with the council housing section before registering you for council tax / housing benefit / voting etc so it's still possible for him not to have permission and for you to have to registered all these.
    I no longer work in Council Tax Recovery as I'm now a self employed Council Tax advisor and consultant with my own Council Tax consultancy business. My views are my own reading of the law and you should always check with the local authority in question.
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