Any help for a neighbour..getting onto the property ladder

ACID

Hi,

my neighbour was talking to me yesterday and this house buying discussion always props up
hes in a bizarre situation

bascially to sum up

boh parents are in their late 50s
mother is earing say 15k
father is on benefits and retired
son is nearing 30 on about 25k
other son is on jsa

they rent house their from the local housing association
and pay about 500-600 a month on rent

any ideas how they can get on? or what can they get on? most affordable in low income house?

should they stil pay rent and also look for a property elsehwhere? or will that cost too much? BTL one bed flat?


they missed funding for this years allocation
other schemes left are shared ownership??? do they pay both the H.A and the shared ownership rent at the same time?

anthing else? anything really recommend> not overpriced etc.

im aware thye have left it late to go on..and shouldve bought in the past etc. but there is no point in writing that?

any helps would be greatly appreciated, if i have missed anythign out ill update accordingly

many thanks in advance for reading..

barnaby-bear

ACID wrote: »

Hi,

my neighbour was talking to me yesterday and this house buying discussion always props up
hes in a bizarre situation

bascially to sum up

boh parents are in their late 50s
mother is earing say 15k
father is on benefits and retired
son is nearing 30 on about 25k
other son is on jsa

they rent house their from the local housing association
and pay about 500-600 a month on rent

any ideas how they can get on? or what can they get on? most affordable in low income house?

should they stil pay rent and also look for a property elsehwhere? or will that cost too much? BTL one bed flat?


they missed funding for this years allocation
other schemes left are shared ownership??? do they pay both the H.A and the shared ownership rent at the same time?

anthing else? anything really recommend> not overpriced etc.

im aware thye have left it late to go on..and shouldve bought in the past etc. but there is no point in writing that?

any helps would be greatly appreciated, if i have missed anythign out ill update accordingly

many thanks in advance for reading..

They must have a household income of 55k+ throwing in benefits and pensions - not really low income; they have low rent (you'd only get a room round here for that) and stable tenure, why buy when htey have cheap rent, permanent home and high disposable household income

ILW

barnaby-bear wrote: »

They must have a household income of 55k+ throwing in benefits and pensions - not really low income; they have low rent (you'd only get a room round here for that) and stable tenure, why buy when htey have cheap rent, permanent home and high disposable household income

Because buying a house is a sure fire way of making a fortune. Everyone knows that.

PasturesNew

The parents should stay doing what they are doing, living in a cheap house for life, no worries.

The son who has a job should be looking at saving a 10% deposit on a small starter home for himself. He can save up over the next 2-3 years and leave home.

The other son needs to look at where he's at and what he hopes to achieve ... and start to either work, study or write poetry. His time will come in the future.

ACID

ta...there are circumstance as to why he is on JSA and cannot work at the moment
however have told his son the same.10% is a lot for london..and its easier said then done..ut he knows that...eventually lol
parents to remain here?? hmmm well agree its low rent
but think his wife prefers to have their own home ? althought they are pretty old now..unsure how they can cope with the rent if they are turn into pensioners?

any other helps

thanks so far!

are the schemes not worth going for? is it better just to get a house on the open market?

ACID

barnaby-bear wrote: »

They must have a household income of 55k+ throwing in benefits and pensions - not really low income; they have low rent (you'd only get a room round here for that) and stable tenure, why buy when htey have cheap rent, permanent home and high disposable household income

its true..its permanent but the luxury is to have your own home when you are renting but not paying the money towards your own home?

it made sense to me..or am i thinking of it differently?

barnaby-bear

ACID wrote: »

its true..its permanent but the luxury is to have your own home when you are renting but not paying the money towards your own home?

it made sense to me..or am i thinking of it differently?

I bet they really feel for the lack of the luxury of paying for your own kitchen upgrade, replacement boiler, exterior decoration, building insurance, mortgage interest and new windows; whilst never having to worry about how to meet the mortgage if out of work....

mlz1413

Acid do I take it that you are asking how do the parents buy the council house they are alreay in? Rather than any old house at full market value?

That you think as only mum earns she will need to buy with son who is working?

If so buying in your late 50's with a mortgage is not going to happen unless they have a large lump sum as retirement is so close the mortgage could only be for 5 or so years.

If the son buys then he needs to pay the mortgage and I presume he will let parents live there, so that could be the full 25 yrs if they live into their 80's and he will be responsible for all repairs in that period as he will be the only one earning.

As for paying rent rather than paying towards own home I think barnaby-bear answered that fully.

Whilst they live in a secure tenanture council house getting old is not a worry, but buying it now and getting old will be a huge worry, I definately wouldn't buy in their situation.

ACID

hi thanks for your feedback, its very useful. For the record its not a council house but housing association, its a 3 bed.
So they shiuld retire in that current house? I ask because oaps struggle later on, would that be the case?
The next step? Should the son save and buy a flat/house?
Open market or a scheme??
Its a good discussion and im glad i have helpful people here:

mlz1413

I thought housing association was the equivalent of council housing? ie new name and scheme but same thing in terms of when you retire the government paid the rent. I'm not up on this so your neighbours need to be aware of what their options are, a chat with the councils benefits officer or CAB would be a good start point.

As for the son's options they are his choice if he needs advise I would get him to speak to an independent finanical adviser and/or mortgage adviser so he can find out his options.

cattie

ACID wrote: »

unsure how they can cope with the rent if they are turn into pensioners?

QUOTE]


They apply for housing benefit of course. How would they pay for a mortage when pensioners is the more important question? Housing benefit is only payable to tenants of property, not owners.

I don't see the point in giving up a good secure housing association tenancy for a half brained idea of wanting to buy a house when thousands are finding themselves being repossessed because they can no longer afford the mortgage & would give anything for the security of a Housing Association tenancy.