Buying Gran's Council House?

seven-day-weekend

leftieM wrote: »

Are people legally entitled to use RTB if they are not the named tenants at the address to be purchased? I would have thought it would be a complete exploitation of the system which was designed to [strike]shackle working people with debt so they couldn't afford to strike too often[/strike] help working class people become home owners.

Well we helped my MIL to buy her council place (because she wanted to); my husband inherited it when she died and we rented it out for a few years and then sold it and bought our house in Spain with the proceeds.

We did nothing illegal - make of it what you will.

DaveHemmerman

Seven-day-weekend you seemed to have done similar to what i "may" do, i am sure if my gran could afford to do it should would have done it years ago as she has lived there 30 years so must like the area and the people. I would think that i would put the house in my gran and aunts names as my mum would inherit the house if anything was to happen to them, which in the long term i will benefit. I aint planning on selling the minute i buy it, i was just looking at this from a long time investment think everyone would agree your money is best invested in bricks and mortar. Like the above post says, i too would eventually rent it out and use the proceeds to buy a house abroad, im only 26 years old so have hopefully many years in front of me to do what i can.

Please dont take this the wrong way but i was only after advice on what is the best way of moving forward if i decided to following through with buying it. I understand that some people may have strong opinions on this matter, but as others have said i am nowhere near the first nor will i be the last to do this sort of thing. I am luck that my house has doubled invalue just like many peoples in the 4 years we have had it so i plan on using a small amount of the equity to buy this house.

Regards

Dave

CB1979_2

I too asked this question a week or so ago, with regards to helping my g/f sis buy her place.

don't worry m8, I got the same do gooders banding about the morals, blah blah blah.

look after No. 1, even if it may seem morally wrong (because of the social housing shortage blah blah crap!) do whatever you can to help you and your family.

others have done it, !!!!!! my nan lived in her place for 50 years & her mum & dad 20 years before that! she bought it with help from my aunt for £35k, sold it the other year for £350k (in Clapham).

do whatever necessary even if illegal (even though this isn't!)

disclaimer, even though I say do whatever necessary i do not condone rape, murder, burglary or any other serious crime to individuals!

seven-day-weekend

Yes, we bought it primarily because it was her home and she would have less to pay out than if she contimued to rent it. This was her wish and definitely was her late husband's; he had been excited about buying it before he died.

It had to be bought in her name as she was the tenant; she signed it over to my husband just before she died. We did actually pay most of the money.

After my MIL did, we rented it for five years to a pensioner couple on income support and never put the rent up.

We sold it in 2003 for £35,000 and bought our house in Spain for exactly the same price.

The difference with you is we are in our 50s.

I wish the RTB scheme was administered differently (no huge discounts and money ploughed back into housing); however it isn't - so MIL just exercised her right to buy and we helped her.

seven-day-weekend

Right, in answer to your original question - if your Grandma buys her house she will lose any entitlement to Housing Benefit (as this only pays rent). She may still qualify for Council Tax Benefit - depends on family income.

The discount she will get will depend on the time she has been a council tenant (doesn't have to be the same property all the time), I think there's a maximum of £35000 but I'm not sure about that.

Hope this helps.

DaveHemmerman

At my age (26) do you think i am planning to much for my future or do you think i am doing the right thing? Many people i know blow their money on going out and on 15k cars with hpi and credit cards upto their eye balls. I know which lifestyle i would rather have and i have got it. I work for Royal Mail with a reasonable pension but who knows what might happen in 40 years time if i work that long, (it maybe 45 years from now depending on things.) I am planning on having my mortgage paid of buy the time i am 40 years old my wife would be 49 so we would be still young enough to live out our dreams whatever they maybe at the time.

Regards

Dave

DaveHemmerman

Seven-day-week - She has lived in the same house for 30 years a previous to that she had another house in the village and if i remember rightly has never owned one and she is now 80 so i guess at least 60 years with the council. Household income, my aunt earns less than £5k, i believe she is paying her contributions so that she gets a pension (think thats what she told me) and my gran just has her pension and perhaps my grandads who is no longer with her. I dont know how much she gets a week, i think she has around £5k in savings too.

seven-day-weekend

We had the mortgage on our family home paid off in our 40s too (although we had one on an investment property until our 50s). We bought our family home in 1976 and didn't bother 'climbing the ladder', we were happy with what we had and therefore it was cheap for us to live in and was paid for after twenty years , even though I was a SAHM for 15 years and my husband spent four years as a student training to be a teacher. It was affordable!! We still have this house, our son lives in it with two other young men.

I think you are doing exactly the right thing.

seven-day-weekend

Try putting the details into https://www.entitledto.com

blue_monkey_2

At the age of 36 I still live with my Mother as we do not earn enough money to rent or buy in this area. We have been on the housing list for 8 years and have 2 kids. We are sitting here watching the 3 bed council houses being bought up by family members other than those that live there when they have their own houses to live in.

Yes I do think it unfair. It is not our fault my husband and I cannot earn more money to be able to buy, even if I was working we would not be able to afford to live around here so we are hoping that one day the council might be able to help us. When my mum 'goes' I haven't a clue what we will do as there are 4 of us so any money in the house will be shared and it's not enough for a deposit. Maybe the council will help us before then, maybe they won't. However, if the houses are bought by people who do not NEED them and there are none left - then where do we go?

Sure you are entitled to do whatever you want but unless you are buying outright, how are you going to be able to get a 'good return' on your investment as with a mortgage you'll have interest to pay. If you are buying outright then you don't need this house do you so why buy it? Why not just pay her rent and buy her some food each week if you 'want to look after her?'. From the way I read it you know your aunt can't look after herself and will need residential care and so you can sell it as soon as she is out. Sorry, but from my own perspective and having been waiting for somewhere we can rent cheap for 8 years, I really don't think this is right.