Eligibility for a LA Home (if have previously purchased one from the LA)

ianprice19741974

Over twenty years ago my dad bought his house from the local council, a few years later I bought it off him as his endowment mortgage was turning sour. Some fifteen years later I still own the house and he lives there with my mum, they're considering putting their name down for a council house or bungalow but have heard on the grapevine that they won't be eligible as they've previously owned and sold property from the local authority.

Is this true or anyone any similar experiences?

Tixy

Have they/you checked the local council website to look at the eligibility criteria to apply for social housing?

I just checked my 2 local council's websites and neither specifically mentions that as a reason not to be eligible.

TBagpuss

I'm not aware that having bought would of itself exclude them, however, heir current housing situation might make it more difficult - what is their current situation - do they have a formal tenancy agreement with you?

They may need to tread carefully as at present they are likely to be viewed as being securely housed (and so low priority) and if they were to move out voluntarily would be considered to have made themselves homeless.

ianprice19741974

Thanks will check the website.

No they don't have a formal agreement with us, it's very informal. We did try to go formal and charge rent and then they tried to claim rent allowance but they were knocked back. This might sound callous or mercenary but it wasn't we just wanted to recover a rental income to accrue to pay the mortgage off when the term is up, as it stands the house will have to be sold when the term is off to pay the balance.

BigAunty

ianprice19741974 wrote: »

No they don't have a formal agreement with us, it's very informal. We did try to go formal and charge rent and then they tried to claim rent allowance but they were knocked back. This might sound callous or mercenary but it wasn't we just wanted to recover a rental income to accrue to pay the mortgage off when the term is up, as it stands the house will have to be sold when the term is off to pay the balance.

I am not aware of any bar that prevents a right to buy owner from re-applying for social housing later on.

There is a poster called 'Housing Benefit Officer' who may clarify why you failed to get HB for them and your chances of securing it now if you reapply.

There is a bar on ex-owner occupiers getting HB as tenants for the first 5 years, then there are further rules when relatives rent to each other relating to commerciality and contrived tenancies.

Mojisola

ianprice19741974 wrote: »

No they don't have a formal agreement with us, it's very informal. We did try to go formal and charge rent and then they tried to claim rent allowance but they were knocked back.

I would think the lack of a formal agreement since the time the house was sold and the fact the parents have been living there without paying rent from then til now would make any application look like a contrived tenancy.

BigAunty

Are you in an area which has a higher than average supply of social housing and lower demand? And are they in England?

The reason I ask is some areas have virtually no supply that gets largely allocated to the homeless, those in priority need (with dependents or health issues), plus in England, a local council doesn't now even need to supply social housing to meet their homelessness obligations - they can offer a 1 year tenancy in the private sector.

So if they are in an area of high demand/low supply, as general needs applicants, they may have a long wait and not get anything. If you do evict them and they present themselves as homeless to an english council, they may only get a 1 year tenancy agreement with a private landlord.

See the Shelter website, and your local council website, to understand how social housing allocation works - it was very much easier to get council property the first time round!

Pixie5740

So your parents purchased the house through the RTB scheme thus getting the property at a discount price. When you bought the house did you pay market rate or a discounted rate? Then you tried to pay the mortgage using HB. Now your parents are looking to get another council property.

I'm not sure how easily they will be able to do it, if at all due to the depleted social housing stock thanks to the RTB scheme, but I almost admire your brass necks.

ianprice19741974

Mojisola wrote: »

I would think the lack of a formal agreement since the time the house was sold and the fact the parents have been living there without paying rent from then til now would make any application look like a contrived tenancy.

That's why we couldn't get housing benefit apparently, which is fair enough, but it's not about making money it's all about appeasing my mortgage lender when I try to buy a house and obtain another mortgage as they want to see a sufficient rental income stream coming from the property. If I try to charge market rent my parents can't afford as they are retired.

Mojisola

ianprice19741974 wrote: »

That's why we couldn't get housing benefit apparently, which is fair enough, but it's not about making money it's all about appeasing my mortgage lender when I try to buy a house and obtain another mortgage as they want to see a sufficient rental income stream coming from the property. If I try to charge market rent my parents can't afford as they are retired.

Didn't you think about this before you bought your parents' house?

As Pixie5740 said - when you bought your parents' house, did you pay the market rate for it?

McKneff

If your parents are retired, there will be the thick end of a thousand pounds going into the household on a 4 weekly basis, 2 x state pensions, maybe serps, etc.


I see absolutely no reason why they cant pay you rent......