Council House purchase?

shaneshaneshane

Hi MSE Forumites.

I know I will probably have a wide arrary of replies but here goes...

Long and short of the post is, I want to give my parents the deposit to purchase their council house, motives being that running calculations they would save almost £300 PCM being homeowners and would save most of that for any unforseen costs and repairs (perks of being a homeowner!) and that the property would come to me eventually (well, unless care costs come into play) rather than being handed back to the council.

I don't want to be named anywhere or have any legal rights/links to the property, I am aware that it leaves me high and dry from a legal point of view if anything went wrong but I am comfortable with the negligible risk, so, I ask, How would I go about this?

Complications (Or maybe not?) are:

I am a mortgaged homeowner in my own property, but as I don't want to be named anywhere on documents/contracts etc that shouldn't be an issue?

They qualify for the max discount on the purchase price due to being council tenants for longer than I have been alive... and due to the discount etc would me funding the deposit cause any issues?

Thanks

Lioness_Twinkletoes

Your parents shouldn't need a deposit as the stupidly high discount will effectively be their deposit. Assuming they have a regular income they can apply for a mortgage and take another social housing home out of circulation thereby screwing over future generations.

SailorSam

Shouldn't be any problems, nobody is going to ask your Mum & Dad where they've got the deposit from. You just write out a cheque.
Long long time ago now but i helped my Mum.

SailorSam

Lioness_Twinkletoes wrote: »

Your parents shouldn't need a deposit as the stupidly high discount will effectively be their deposit. Assuming they have a regular income they can apply for a mortgage and take another social housing home out of circulation thereby screwing over future generations.

That sounds like sour grapes.

Pixie5740

Absolutely no issues with you gifting a deposit to your parents. You're not allowed to borrow money to use as a deposit anyway.

However, your parents' discount could probably be used as the deposit. Are they going to require a mortgage to fund the rest of the purchase? I don't know how old your parents are but I do know that older people are finding it more difficult to get mortgages these days.

leveller2911

SailorSam wrote: »

That sounds like sour grapes.

The fact remains that this will be yet another Council House that won't be available in the decades to come for a family that will need housing.

Just to add, why should anyone (you,me,or the op) be gifted £10,000 of taxpayers money?. It was never a great idea when Maggie Thatcher implemented the scheme and I actually think she did more good that bad when she was Prime Minister so sour grapes ,I don't think comes into it.

Sailor, add together all of those £millions gifted to people on the RTB scheme and think of the extra housing that could have been built with the money..

"Sour grapes" snipe is a poor one IMO..

Lioness_Twinkletoes

SailorSam wrote: »

That sounds like sour grapes.

Not at all - I have the option to buy my home under the RTB scheme. I wouldn't dream of it, I don't consider that being fortunate enough to be offered a home by the council (or HA) gives me the right to buy it for a pittance when others have to pay full price.

Makes me even more angry when I KNOW that the RTB is being abused by people like the OP, hoping to make a killing when the parents die. Or those that buy them while on benefits and then rent them out for profit....In my borough over 50% of properties sold under the RTB are owned by non resident owners. Makes a mockery of the whole scheme.

lighting_up_the_chalice

leveller2911 wrote: »

The fact remains that this will be yet another Council House that won't be available in the decades to come for a family that will need housing.

No it won't. Unless you think they are going to demolish it once bought.

leveller2911 wrote: »

Sailor, add together all of those £millions gifted to people on the RTB scheme and think of the extra housing that could have been built with the money..

A drop in the ocean compared to the amount of VAT lost from all those houses built for private sale.

leveller2911 wrote: »

"Sour grapes" snipe is a poor one IMO..

Poor? Maybe.... But well observed.

Lioness_Twinkletoes

lighting_up_the_chalice wrote: »

Poor? Maybe.... But well observed.

No - wrong :rotfl:

I am very anti the RTB scheme for a whole host of reasons and I'm not a hypocrite

lighting_up_the_chalice

Lioness_Twinkletoes wrote: »

No - wrong :rotfl:

I am very anti the RTB scheme for a whole host of reasons and I'm not a hypocrite

As the "sour grapes" comment related to taking "another social housing home out of circulation thereby screwing over future generations", I stand by my comment that it was well observed. No-one has accused anyone of hypocrisy on this thread.

SailorSam

Imagine if the OPs parents don't buy the house but contine living in it, as they get older and start to live on benefits, the Council or the Govt will pay their rent. But if the house is bought and paid for the Council will save all that money it may pay out.
I never made anything out of RTB, i left home and bought myself a little terrace that needed work doing on it. But my Mum bought 'our' Council house back in the days of Maggie.