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  • FIRST POST
    • Kieran2001
    • By Kieran2001 8th Feb 18, 6:03 PM
    • 24Posts
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    Kieran2001
    Moving from Bought House to Long-Term Rented
    • #1
    • 8th Feb 18, 6:03 PM
    Moving from Bought House to Long-Term Rented 8th Feb 18 at 6:03 PM
    Hello,

    Me and my parents currently live in a 3 bed room house in a town on the outskirts of County Durham. We are planning to move to a 3 bed room rented house in the same town, which has a smaller footprint, as my parents donít want to deal with the possibility of anything going wrong in the house as my parent has a low income and has recently split from my other parents permanently after 25+ years.

    My parents have had a mortgage on the house for about 20 years, and the mortgage still has a few decades left and the price of the mortgage isnít going down, pretty much just paying the interest. My parent has received a 25% reduction as she is the the only adult living in the house.

    My parents concern is that if they move from mortgage to rented, they will have to pay council tax until the mortgaged house sells which could be 3-6 Months. Is there any additional reduction schemes she can use, as she is on low income and divorced? She is unable to pay 2 council taxes, however she also canít afford to pay for repairs if thereís faults in the house, such as a pipe bursting, two breaking etc.

    Thanks fo any advice, and let me know if you need any further information to assist me.
Page 3
    • saajan_12
    • By saajan_12 8th Feb 18, 8:26 PM
    • 1,118 Posts
    • 752 Thanks
    saajan_12
    OP, stop sticking to your plan and try to think about the issues with it.

    1. Landlord will want to check affordability, will see mortgage and deduce mum can't afford rent, so rental isn't possible.

    2. Benefits won't cover rent when she has a perfectly good house to stay in

    3. Lender won't give an open ended payment holiday for however long it takes to sell, when mum can afford mortgage without the unnecessary rental, so they aren't backed into a corner. So she will be covering rent + mortgage.

    4. Letting it go to auction will mean MUCH lower sale price, plus repossession, auction room etc costs .. does she WANT to throw away money?

    5. Council tax discounts for empty properties are minimal ~1 month if that, for extended periods can be higher than the usual bill to disincentivise leaving properties empty. So she'll be liable for 2x council tax.

    6. Utility bills usually have standing charges, even when you're not in residence. If you turn off heating/water, pipes can freeze, making it more likely to cause repair bills.

    7. Mortgage can be paid down atleast. Long term renting has no end in sight - what will happen when she no longer has any income?

    Your realistic options are sell then move or stay put. Your plan isn't feasible.
    • Penitent
    • By Penitent 8th Feb 18, 8:28 PM
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    Penitent
    Iíve lost track of it now. She gets roughly £900 Per Month from her 60 Hour A Week job, and about the same in a variations of benefits. Once my DLA Appeal has being completed, there will be an additional £500 Per Month, and she has stated when this happens, she would be able to handle both properties.
    Originally posted by Kieran2001
    She intends to spend your DLA (which is meant to be spent on costs associated with your disability) on renting a house she doesn't need to rent (because she already has one she can live in until it sells)?

    Itís more long term issue, than short term, as if something breaks like an oven, she canít magic out hundreds to repair it, and she refuses to get any loans / finincal aid that isnít provided by DCC.
    Originally posted by Kieran2001
    These long term issues can be a good reason to go into rented. Some people prefer paying a set amount each month and knowing it will cover repairs. This isn't a reason for her to start renting now instead of waiting for the house to sell first.
    • dimbo61
    • By dimbo61 8th Feb 18, 8:28 PM
    • 9,754 Posts
    • 5,254 Thanks
    dimbo61
    Minimum wage for someone over 25 is £7.83 an hour.
    60X 7.83 is alot more than £900 a month.
    Mum needs to stay in the property until it is sold.
    She needs to speak to a Good solicitor so her ex cannot run up any more debts in her name or use the property as security on a loan or other debts.
    PS your dad maybe entitled to 50% of the equity in the property.
    • Kieran2001
    • By Kieran2001 8th Feb 18, 8:29 PM
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    Kieran2001
    Your mum needs to be saved from herself.

    Other son is going to have to lump it.

    She sells in the normal way to get best price, and moves into rented.

    Anything else is perverse and more expensive
    Originally posted by AnotherJoe
    3 Bedrooms are only £25 more than 2 Bedroom houses, so that part really doesnít make any diffence. Also, sheís canít afford all the sale fees, evaluations etc.
    • Kieran2001
    • By Kieran2001 8th Feb 18, 8:33 PM
    • 24 Posts
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    Kieran2001
    Minimum wage for someone over 25 is £7.83 an hour.
    60X 7.83 is alot more than £900 a month.
    Mum needs to stay in the property until it is sold.
    She needs to speak to a Good solicitor so her ex cannot run up any more debts in her name or use the property as security on a loan or other debts.
    PS your dad maybe entitled to 50% of the equity in the property.
    Originally posted by dimbo61
    She works alternate weeks, and she doesnít like the job TBH neither, as she gets 0 work befits beyond that legally required, despite working for 20 Years, and pension is a mear £500, which is a laughing stock.

    And she is aware of the 50% split on any earnings from a sale. The only thing tied to both names is the mortgage, unfortunately the largest asset. On top of this her ex is pushing her to sell the house, as he is trying to get as much money as possible from her.
    • Kieran2001
    • By Kieran2001 8th Feb 18, 8:34 PM
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    Kieran2001
    She also doesn!!!8217;t want to be dealing with constantly returning letters, and more than likely having numerous high court enforment officers turn up, as all his debts are registered as my mams house.
    • Cakeguts
    • By Cakeguts 8th Feb 18, 8:36 PM
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    Cakeguts
    3 Bedrooms are only £25 more than 2 Bedroom houses, so that part really doesnít make any diffence. Also, sheís canít afford all the sale fees, evaluations etc.
    Originally posted by Kieran2001
    They get paid out when the house is sold not up front. If she can't afford the sales fees she cannot afford the rent.
    • Kieran2001
    • By Kieran2001 8th Feb 18, 8:37 PM
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    Kieran2001
    They get paid out when the house is sold not up front. If she can't afford the sales fees she cannot afford the rent.
    Originally posted by Cakeguts
    Most agents charge over double, unless you pay up front from what Iíve seen. And some fees will probably have to be paid regardless of a sale.
    • Cakeguts
    • By Cakeguts 8th Feb 18, 8:40 PM
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    Cakeguts
    She works alternate weeks, and she doesn!!!8217;t like the job TBH neither, as she gets 0 work befits beyond that legally required, despite working for 20 Years, and pension is a mear £500, which is a laughing stock.

    And she is aware of the 50% split on any earnings from a sale. The only thing tied to both names is the mortgage, unfortunately the largest asset. On top of this her ex is pushing her to sell the house, as he is trying to get as much money as possible from her.
    Originally posted by Kieran2001
    Well that is good isn't it because she wants to sell the house. She still won't get any benefits and she won't get benefits for a 3 bed house when only 2 people live there. Your brother will be expected to find his own accommodation.
    • Penitent
    • By Penitent 8th Feb 18, 8:42 PM
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    Penitent
    And she is aware of the 50% split on any earnings from a sale. The only thing tied to both names is the mortgage, unfortunately the largest asset. On top of this her ex is pushing her to sell the house, as he is trying to get as much money as possible from her.
    Originally posted by Kieran2001
    I thought you weren't in contact?

    She also doesn!!!8217;t want to be dealing with constantly returning letters, and more than likely having numerous high court enforment officers turn up, as all his debts are registered as my mams house.
    Originally posted by Kieran2001
    "Not at this address. Return to sender." Yes, it's annoying, but it's a really bad reason to go down this bizarre route that's going to leave her financially worse off.

    BTW - you also said you DLA appeal isn't complete. What stage is it at? Has the Tribunal made an award? If not, then there's no guarantee that you'll get the amount you think you'll get. I've been fighting over my PIP for nearly two years (I had to go to the Upper Tribunal). I know what I'm likely to receive at this point, but there's no guarantee until it's reheard by the First Tier Tribunal and I know whether or not the DWP intend to appeal.
    • Cakeguts
    • By Cakeguts 8th Feb 18, 8:42 PM
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    Cakeguts
    Most agents charge over double, unless you pay up front from what Iíve seen. And some fees will probably have to be paid regardless of a sale.
    Originally posted by Kieran2001
    Well find one that doesn't.
    • Kieran2001
    • By Kieran2001 8th Feb 18, 8:45 PM
    • 24 Posts
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    Kieran2001
    I thought you weren't in contact?



    "Not at this address. Return to sender." Yes, it's annoying, but it's a really bad reason to go down this bizarre route that's going to leave her financially worse off.

    BTW - you also said you DLA appeal isn't complete. What stage is it at? Has the Tribunal made an award? If not, then there's no guarantee that you'll get the amount you think you'll get. I've been fighting over my PIP for nearly two years (I had to go to the Upper Tribunal). I know what I'm likely to receive at this point, but there's no guarantee until it's reheard by the First Tier Tribunal and I know whether or not the DWP intend to appeal.
    Originally posted by Penitent
    Iíve got a cover letter saying Iím entitled, but the points all say zero, only got the letter a few weeks ago.
    • Penitent
    • By Penitent 8th Feb 18, 8:46 PM
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    Penitent
    Well that is good isn't it because she wants to sell the house. She still won't get any benefits and she won't get benefits for a 3 bed house when only 2 people live there. Your brother will be expected to find his own accommodation.
    Originally posted by Cakeguts
    She might: http://forums.moneysavingexpert.com/showpost.php?p=73849620&postcount=6

    But not while she still has a house she could be living in.
    • Penitent
    • By Penitent 8th Feb 18, 8:49 PM
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    Penitent
    Iíve got a cover letter saying Iím entitled, but the points all say zero, only got the letter a few weeks ago.
    Originally posted by Kieran2001
    So it's potentially just a cover letter with a typo at this point? You haven't even had a Mandatory Reconsideration?
    • Cakeguts
    • By Cakeguts 8th Feb 18, 8:50 PM
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    Cakeguts
    She might: http://forums.moneysavingexpert.com/showpost.php?p=73849620&postcount=6

    But not while she still has a house she could be living in.
    Originally posted by Penitent
    Thank you.

    I am beginning to lose the will to live.......
    • Penitent
    • By Penitent 8th Feb 18, 8:59 PM
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    Penitent
    Thank you.

    I am beginning to lose the will to live.......
    Originally posted by Cakeguts
    Part of the reason I still use these boards even when they inevitably lead to an anxiety-fueled crash is that I like to feel like I'm contributing something to the world. It ofsets the constant guilt of being a "scrounger". Right now, I really don't think I'm contributing. I feel like this young man's mother is going to make this bizarre financial decision--funded by a wing, a prayer and her son's disability money--regardless.
    • Cakeguts
    • By Cakeguts 8th Feb 18, 8:59 PM
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    Cakeguts
    None of the reasons you have given are good ones for not selling the house before moving into rented. The fact that her ex wants her to sell the house is good because that means he isn't going to block the sale.

    All the rest the letters, pipes, mortgage, estate agents fees etc are not good reasons not to sell the house.

    If your mum can't afford to pay the mortgage and mend the pipes then she can't afford to do all that and pay rent at the same time. She will not get benefits to help pay the rent while she still owns a house. She will have to sell the house first. If she fails to pay the rent the landlord will take her to court to get the house back. The council will not rehouse her. They don't give council houses to people who already own houses or who do not pay their rent.

    Councils run extensive checks on people before they give them any benefits.
    • Cakeguts
    • By Cakeguts 8th Feb 18, 9:04 PM
    • 3,763 Posts
    • 5,201 Thanks
    Cakeguts
    Part of the reason I still use these boards even when they inevitably lead to an anxiety-fueled crash is that I like to feel like I'm contributing something to the world. It ofsets the constant guilt of being a "scrounger". Right now, I really don't think I'm contributing. I feel like this young man's mother is going to make this bizarre financial decision--funded by a wing, a prayer and her son's disability money--regardless.
    Originally posted by Penitent
    People eligible for getting PIP are not scroungers. I like to pay tax to help the vulnerable in our society. Scroungers are people who are perfectly able to get a job but choose not to and expect others to pay for their children and themselves to have a lifesyle of leisure paid for by others. No one can help getting ill.
    • Kieran2001
    • By Kieran2001 8th Feb 18, 9:05 PM
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    Kieran2001
    So it's potentially just a cover letter with a typo at this point? You haven't even had a Mandatory Reconsideration?
    Originally posted by Penitent
    No, the DWP hasnít acknowledged any phone calls. Also, Iíve had PIP since 2009, only last year they did a reassessment and magically went from top band to nothing at all.
    • Cakeguts
    • By Cakeguts 8th Feb 18, 9:09 PM
    • 3,763 Posts
    • 5,201 Thanks
    Cakeguts
    No, the DWP hasnít acknowledged any phone calls. Also, Iíve had PIP since 2009, only last year they did a reassessment and magically went from top band to nothing at all.
    Originally posted by Kieran2001
    So until this is sorted out you won't get any money towards paying the rent on the mythical rented house so this means that your mum will have to get going on selling the one she currently owns.
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