Right to buy council house

Denni

Hi folks,
hope you are all well this afternoon.

I'm sure this subject has been covered to death but a forum search didn't provide my answer and I was wondering if someone could enlighten me.

My wifes parents are looking to purchase their council house in Redditch as they are eligible but they were wondering if it is possible to immediately rent the property? I know they cannot sell within 5 years of purchase without a payback for their discount but not too sure about the renting aspect of it.

They are currently away so I'm fielding the question to see if anyone has done it or if it is possible to do it after purchase.

Thanks in advance, Den

Better_Days

Why do your in laws want to rent the property?
Where will they be living?

Surely you are not suggesting that the inlaws wish to both purchase a property at a substantial discount when there is a great shortage of social housing and also receive rental income to boot?

Or is this a wind up?

Denni

Hi there,
thanks for the reply. I appreciate where you are coming from but this Isn't a wind up.

The council wrote and asked them if they wished to buy the house so the shortage of social housing in their area doesn't seem to be an issue for the council so why not take them up on their offer?

It seems daft not to buy the house and rent it out if this is possible and as for where they are going to live, they would come and live with us and then after the 5 year period, they would sell the house in order to fund a house near to us.

If a council is happy to sell of its social housing to either the current occupant or anyone else, don't you agree that it would be prudent to take them up on their offer? If it were the case that they said due to a shortage no properties would come under the right to buy then I'd understand that but to actively seek out a buyer would indicate they didn't require the house.

I probably should have explained that in post one!
Thanks for the reply though, much appreciated.
Den

kingstreet

Ask the local authority.

The only answer you can rely on, is the one from the horse's mouth.

Unless there just happens to be a Redditch recent RTB purchaser on here, the general speculation you'll get will be pointless.

Werdnal

Councils are usually happy to sell to people who have been long term tenants and therefore built up their RTB in order to be able to buy their own property.

You may regret posting this, as feelings run very high on the subject of taking advantage of this generous offer by the council, when the purchasers only intend to use it as a money making opportunity. Why should they buy it cheap only to rent it out???? Believe me, other posters will not be quite as reserved in their comments - might want to put your tin hat on!

Where will your parents be living whilst they rent this property out? If they can afford to live elsewhere, surely the moral thing to do would be to free up this cheap to rent property to a family who may need it more than your parent obviously do.

Denni

Hi folks,
again thanks for the replies, much appreciated. Having found an old thread, tin hat firmly on!

I don't expect however to reply to all the potential posters I am simply asking a question on behalf of my wifes parents. (who will be living with us due to various reasons)

So then, asking those who are against it, what should their preferred option be? The council are not interested in the property so should they simply just give it to someone else to live in? They don't want to live there, they have been offered the right to buy, they would like to sell it after the 5 year period and move nearer us so why not?

As far as renting goes, they are actually quite happy to rent it cheaply to someone who needs it, it isn't all about making money and exploiting people despite what people may say.

Anyway, thanks in advance for vitriolic posts and hopefully more advice ;0)

Den

cattie

The majority of us if ever given the opportunity to buy a cheap house would do so, albeit a council house that morally should stay as social housing.

However, no government has ever had the b*lls to rebuke the legislation that allows the RTB & until that happens who can blame those lucky enough to be council or HA tenants wanting buy a bargain property when given the opportunity. I certainly don't.

Better_Days

OP, I wouldn't infer that the council isn't interested in the property because they wrote to your inlaws. They may be obligated to inform tenants of their RTB even if there is a shortage of social housing in the area.

My late Dad purchased his flat from the council many years ago. But it was only as a result of the council contacting him and informing of his RTB and the discount due. He had just inherited enough money from when his Dad died and so went ahead with the purchase.

He lived there happily for the rest of his life, although in retrospect he was very lucky not to get stung with a big bill for repairs. So do your inlaws have the funds to maintain the property if they buy it? Becoming a LL is a big responsibility - are you inlaws aware of their obligations (there are some excellent stickies on this forum on the topic)

Your question is really a moral one, and no doubt you will receive a variety of responses Personally I think that it is madness that councils are selling off properties when there is such a shortage of housing in this country. But I see it as neither the fault of the buyers or the councils. As cattie says - we need a government with the b*lls to revoke RTB, at least until housing stock is built up, rents fall and so the housing benefit bill is bought down.

custardy

Denni wrote: »

Hi there,
thanks for the reply. I appreciate where you are coming from but this Isn't a wind up.

The council wrote and asked them if they wished to buy the house so the shortage of social housing in their area doesn't seem to be an issue for the council so why not take them up on their offer?

It seems daft not to buy the house and rent it out if this is possible and as for where they are going to live, they would come and live with us and then after the 5 year period, they would sell the house in order to fund a house near to us.

If a council is happy to sell of its social housing to either the current occupant or anyone else, don't you agree that it would be prudent to take them up on their offer? If it were the case that they said due to a shortage no properties would come under the right to buy then I'd understand that but to actively seek out a buyer would indicate they didn't require the house.

I probably should have explained that in post one!
Thanks for the reply though, much appreciated.
Den

It still doesnt make sense to me
why suddenly move to live with you?
would they be living rent free with you?

BitterAndTwisted

One potential issue is that if they exercise the RTB they will have to apply for a residential mortgage. Residential mortgages are not the right vehicle for a commercial undertaking, and lenders will often not give consent-to-let immediately after the mortgage has been taken out. That makes it clear that the intention was not to live in it but to start a business and that could be a potential mortgage fraud. They should apply for a Buy-To-Let mortgage and the Council may not allow that to happen. The Right To Buy is not designed for those who are planning an investment portfolio.

One strategy might be to buy it with a residential mortgage, live in it for five years to avoid having to pay back any discount and then apply for a BTL mortgage.

Yorkie1

I think B&T has a point. I don't think any BTL products are available on RTB properties.