Buying my parents' Council House

newsgroup_monkey

antrobus wrote: »

They'd have the same place to retire to if they didn't buy it. There are no indications that the council is going to take their house away from them.

There is no mention on how they intend to pay for rent after retirement however. Councils don't stop charging people if they retire. You are making an unfair assumption if you think that they might be entitled to HB in retirement.

antrobus wrote: »

Presumably the parents could leave the house to the OP in their wills if they wanted to, thereby ensuring that they did not lose out on the investment irrespective of what it said on the land registry.

Not if they go into care. They will be forced to sell their house and the OP would be entitled to whatever the threshold would be (which could be a lot or could be nothing).

There's an awful lot of assumptions in this thread. People are reading this as "I would like to buy my folks pad on their behalf so that when they are older I can flog it and make myself very wealthy at the taxpayers expense".

Whereas I see it as "I would like to buy my folks pad so that they have somewhere to live later in life and so that I have something to leave my grandchildren etc."

For all we know, the OP is in his early 20s and the parents are in their mid-40s.

Mojisola

newsgroup_monkey wrote: »

Councils don't stop charging people if they retire.

But they do keep doing repairs and maintenance.

If the parents buy the house, they will need to put money aside to pay for that.

If they would be getting HB towards their rent, they could be worse off than if they stayed as tenants.

xylophone

Could you not lend the money to your parents interest free but with capital (say) RPI linked, the money to be repaid on sale of the property?

You would need to consult a solicitor as would your parents.

newsgroup_monkey

But the OP made no reference to whether they would ever be entitled to any HB?

For all we know, one of his parents might earn £35k a year and have a 2/3rds final salary pension.

They might be paying £400 a month rent which generally would be more than maintenance and repairs.

terra_ferma

People do make a lot of assumptions, from a simple request for information, from someone who is prepared to accept that they don't have a right to be included but are just checking it out.
Then as they know best, they decide it wouldn't be in his parents' interest to buy after all.
This thread is very entertaining....

AliceBanned

I recommend you ask your parents to do the application. The council will send a surveyor round to value the property. Following this your parents will receive an offer notice, including discount, based on the surveyor's valuation which is considered to be current market value (more likely to be on the moderate side rather than an overestimate - they may be pleasantly surprised).

From there your parents will be able to find out whether they can afford it. I don't know what happens with regard to you owning a share - may not be possible but your parents could make this enquiry. As it is their tenancy they may be able to choose if someone buys it with them, but this will probably only include people currently living there, not sure.

Your parents have nothing to lose by instigating the process, and can terminate after the valuation - the council will give them several weeks to decide and in that time they can see whether they can get a mortgage on it (can be difficult with some council properties, but not all). They can re-apply at any date in the future if they like; they don't have to go ahead first time or at all.

I don't think there's anything wrong with you making this enquiry on this forum - I think people sometimes misunderstand that there are many downsides to being in council property, it isn't a gifthorse getting the right to buy necessarily. After all, many people can go and buy whatever they like. They are the ones to be envied, not people stuck in cheap housing, whether social housing or private.

terra_ferma

Just thought of something, before you buy a property it's worth finding out any future costs arising from repairs and maintenance work.
In an estate I know of, property owners ended up with bills of £15000 for a large estate that had a lot of work outstanding (e.g. double glazing, roof, lifts).
Also regular service charges can be expensive, much more than if you are renting.

Mojisola

Mojisola wrote: »

If they would be getting HB towards their rent, they could be worse off than if they stayed as tenants.

newsgroup_monkey wrote: »

But the OP made no reference to whether they would ever be entitled to any HB?

Which is why I said "if" and "could"!

For all we know, one of his parents might earn £35k a year and have a 2/3rds final salary pension.

They might be paying £400 a month rent which generally would be more than maintenance and repairs.

If the parents have a good income, they should be able to buy the house without extra money from anyone else.

terra_ferma

Mojisola wrote: »

If the parents have a good income, they should be able to buy the house without extra money from anyone else.

OP didn't say they aren't able to buy without his money, but whatever their situation, it's his business and not relevant to his question. His right to put his name on the property is not effected by how much money his parents have, or why he's giving them money.

Mojisola

terra_ferma wrote: »

OP didn't say they aren't able to buy without his money, but whatever their situation, it's his business and not relevant to his question. His right to put his name on the property is not effected by how much money his parents have, or why he's giving them money.

mattcafc wrote: »

I have a few questions that you may be able to help with, that may put a stop to this straight away though. I no longer live with my parents, however I would like to purchase it (along with my parents), is this allowed on the right to buy scheme?

There's a strong implication there. If he can't add his name to the deeds, they won't be buying it.