Buying a council property

pickledonionspaceraider

That is how I think Steve4Mandy, very fortunate to have this opportunity as there is not really any other way we could afford to do it.

Just to be clear ( I warned you I know absolutely nothing whatsoever lol) - the discount - that is used in part as a deposit? I always imagined we would still be needing to get a deposit together, is this not the case?

wahoo if not!

Riddar

steve4mandy wrote: »

In answer to your question -

Market Value £135000

Minus my own home improvements £10000

Purchase price £125000

Minus 52% discount

Mortgage Price £60000

Via broker, through Nationwide, 5 year fixed, £419 Per month, £5 more a month than rent (which goes up again April '14).

Council works/improvements not mentioned, I've had new boiler & Velux windows installed in last 2 years. our house is a 3 storey town house with off road parking for 2 cars, with a small gated drive!

Houses down my road were selling at this price in 1999/2000, in effect we've managed to turn back time.

We consider ourselves very fortunate to be able to purchase a house for this price, when you see the struggle some people are having getting a foot on the ladder.

You've made me very excited. I hope my council doesn't mention anything regarding the work they done also. Congratulations mate, you got yourself a great bargain :T

Thanks for your reply to my question

Riddar

pickledonionspaceraider wrote: »

That is how I think Steve4Mandy, very fortunate to have this opportunity as there is not really any other way we could afford to do it.

Just to be clear ( I warned you I know absolutely nothing whatsoever lol) - the discount - that is used in part as a deposit? I always imagined we would still be needing to get a deposit together, is this not the case?

wahoo if not!

I believe the discount is used as a deposit and covers all the additional fees also.

Amazing isn't it :j

pickledonionspaceraider

It really is, I am starting to feel very excited about all this

thanks for your help

leveller2911

I'm sure all those hundreds of thousands of people in need of Social Housing won't be so excited.The Council RTB scheme has helped create the dire shortage of housing in this country.

One of the things I really think is wrong is when people do execise the RTB and if they are later repossessed they can then go on the Social housing waiting list and in time be renting a council house again.


I don't blame anyone for taking the bribe, looking after number one and I wish you all luck.

somethingcorporate

+1, seems a totally bizarre thing to be doing in the current climate but it would take a very brave government to put a stop to this.

pickledonionspaceraider

leveller2911 wrote: »

I'm sure all those hundreds of thousands of people in need of Social Housing won't be so excited.The Council RTB scheme has helped create the dire shortage of housing in this country.

One of the things I really think is wrong is when people do execise the RTB and if they are later repossessed they can then go on the Social housing waiting list and in time be renting a council house again.


I don't blame anyone for taking the bribe, looking after number one and I wish you all luck.

I don't feel we are taking a bribe at all, bit of a negative attitude to have. I do realise we are very very lucky as not everyone has this opportunity.

I think a bigger problem than the RTB is the hundreds upon thousands of immigrants coming in and needing housing.

It's simple mathematics, too many people = an overwhelmed economy.

leveller2911

pickledonionspaceraider wrote: »

I think a bigger problem than the RTB is the hundreds upon thousands of
immigrants coming in and needing housing.

It's simple mathematics, too many people = an overwhelmed
economy.

I agree that we have a problem with the amount of immigration however the accession countries came in around 2003 but the housing shortage along with our boom and bust economy has been around since the early 80,s so you can't blame it all on the current immigration problem.

The "bigger" problem is lack of supply along with low wages.Hence why people are using the HTB1 and HTB2 schemes. Taxpayer funded guarantees for loans is a recipe for disaster IMO.

Selling off the Social housing stock has been a disaster, people on low wages can't afford to buy and can't afford to rent privately. Why should Council tenants receive a discount at all?.

pickledonionspaceraider

leveller2911 wrote: »

I agree that we have a problem with the amount of immigration however the accession countries came in around 2003 but the housing shortage along with our boom and bust economy has been around since the early 80,s so you can't blame it all on the current immigration problem.

The "bigger" problem is lack of supply along with low wages.Hence why people are using the HTB1 and HTB2 schemes. Taxpayer funded guarantees for loans is a recipe for disaster IMO.

Selling off the Social housing stock has been a disaster, people on low wages can't afford to buy and can't afford to rent privately. Why should Council tenants receive a discount at all?.

I agree, its totally not fair, why SHOULD council tenants recieve a discount? There IS no fairness at all in the situation whatsoever. One person can recieve a massive discount, but their next door neighbour who buys outright, well, they pay market value, it does seem completely crazy

The new Help to Buy schemes seem a disaster to me too, I am guessing that the reposessions are going to go through the roof due to people jumping in quick on a 5% deposit and ending up with huge mortgages. It really is terrifying.

seven-day-weekend

Whilst also not agreeing with all the details of the RTB,(in particular the discount), I do not blame anyone for taking advantage of their chance to improve the future both for them and their families. Hope it works out for you all.

My m-i-l exercised her right to buy her bungalow in the 1990s - the sale of it after her death eventually provided the deposit for our son to buy his own flat. I've said this to declare my interest in the situation.