What would you do? Advice needed

judosteffer

Hiya,

heres a real life problem.

I have an Auntie who lives within 5 mins of Gatwick Airport. Her husband is recently deceased. As she no longer wishes to live up there but would like to relocate to the west country.

However- she has lived in her 2 bed council flat near Gatwick for 20 years plus- the council said they would sell it to her for £112,000 although they valued it at worth £150,000.

However she could not sell it for 5 years.

What is the best thing she could do in order to relocate to the West Country but still maximise the potential gains from the flat?

She has a helpful family who want the best for her - and would contribute towards deposits for a new house, decorating, renovating etc.

I am thinking something along the lines of she buys the council flat and rents it out while she either rents or the family help purchase a house in the west country. Then she either sells it at the end of the 5 years or continues to make money from it. (perhaps getting a letting agency to manage the flat over the 5 years so she doesnt have to keep going up to near gatwick to look after it)

Any advice most appreciated!

silvercar

I doubt she could buy it and rent it out straight away. There is probably something in the sale document that prevents her from doing this.

She would have to get a buy-to-let mortgage if she didn't intend living in it. This would be difficult without a deposit. I guess she could get an ordinary mortgage (check that there would be no redemption penalties) initially and then change to a buy-to-let mortgage when she moves; that would get around the deposit problem as she would be looking at less than 80% of the properties then value.

CB1979_2

have you cosidered the other option that teh council's offer (well croydon council does!)

they will give you UPTO £30k (depends on property size, location, etc) for you to leave the property, only on the condition that you get another property with it that has a mortgage.

housebuyer_3

I would find out about buying it and renting it out, check to see what the contracts might say - speak to the council but don't give any specific details about your aunty or which flat. They should still give you the information. Alternatively, tell them you want to purchase it then ask a solicitor to look over the contracts before signing.

clutton_2

why not try to do a swap for a house in your chosen area ?

judosteffer

if she did a house swap - do you think the discount she has built up over the years would be carried over to a house she moved into in the west country? (obviously a different council) how can I find out more about this?

CB1979_2

ring the council and ask