need alot of advice about alot of stuff!!!

headhurts.com

ok, new to this and in search of advice about mine and my partners plan and any pitfalls we could occur. Have been researching as much as I can but my HEAD HURTS! heres the plan; me and my partner and kids live in housing association, we are on homeswapper and are going to attempt to swap back to council to then buy home with discount. We would then rent out the property to pay for itself with the intention then to sell it in the future for a profit. MEANWHILE we would be living in my mums, owned outright, home.... with a extension built on to it with separate kitchen bathroom etc, for her to live in. I will add that my mum is 58, super healthy, very close to her, no partner, no intensions to ever marry, I am an only child and the house is left to me. I am after any advice on deprivation of assets, building an extension for the purpose of separate living, what could happen if my mum needed proper care (I have the intension to look after my mum the best possible and if it was needed to fund costs for care home, if say alzeimers should strike then that is what would happen) Also inheritance tax. or someother crazy tax that is out there. Any other snags in our plan that people can see??? I am just after advice from helpful people in the know, im just trying to secure my kids future like my mum has done for me. thanks

lawriejones1

Firstly, it's good forum etiquette to use a space bar and insert line breaks around paragraphs as it's quite hard to read.

Secondly, what you are suggesting is morally suspect, legally dubious and inevitably, financially impossible.

If the taxpayer supports you to buy a home, it's to live in, not to rent out. You won't get a buy-to-let mortgage for an ex-council place immediately, so don't try.

Any improvements made to your mother's home would benefit her, unless you became tenants in common, which would incur legal costs.

This all reads like some kind of get rich quick scheme drawn up on the bag of a fag packet in a provincial Wetherspoons.

pyueck

I don't really understand the plan to be honest based on what you have said. I suggest you read the rules on right to buy and as the previous poster said look at your chances of securing a buy-to-let mortgage.

Guest101

headhurts.com wrote: »

ok, new to this and in search of advice about mine and my partners plan and any pitfalls we could occur. Have been researching as much as I can but my HEAD HURTS! heres the plan; me and my partner and kids live in housing association, we are on homeswapper and are going to attempt to swap back to council to then buy home with discount. We would then rent out the property to pay for itself with the intention then to sell it in the future for a profit. MEANWHILE we would be living in my mums, owned outright, home.... with a extension built on to it with separate kitchen bathroom etc, for her to live in. I will add that my mum is 58, super healthy, very close to her, no partner, no intensions to ever marry, I am an only child and the house is left to me. I am after any advice on deprivation of assets, building an extension for the purpose of separate living, what could happen if my mum needed proper care (I have the intension to look after my mum the best possible and if it was needed to fund costs for care home, if say alzeimers should strike then that is what would happen) Also inheritance tax. or someother crazy tax that is out there. Any other snags in our plan that people can see??? I am just after advice from helpful people in the know, im just trying to secure my kids future like my mum has done for me. thanks

Well you can use right to buy to purchase, with a discount - check council rules regarding renting out the property afterwards.

But presumebly you'd need a mortgage, and you won't get a BTL with your plan. So you're relying on getting a residential mortgage, and consent. Which you won't for a minimum 6-12 months really.

Let's say you do, you're going to be a LL, with no financial capital, and no experience. What happens if the property needs a new boiler? What happens if tenant stop paying rent? What happens if you don't replace tenant after a few months?

Argghhh

sounds like a troll post

Cheeky_Monkey

Argghhh wrote: »

sounds like a troll post

Totally agree :beer:

Just in case it isn't ...... who in their right mind is going to swap a Council property (with RTB) for a HA one without.

hostie

Hello, I don't often reply so I have no idea whether you are a troll but your post seemed totally reasonable to me.

You would need to move into the new council place and then buy it to live in yourself. As the other people say, you won't be able to get it on a buy to let basis. I don't know how long you have to live in it before you can let it out but someone else will be able to tell you this.

You need to get help from a solicitor regarding inheritance issues. There is a scheme whereby a parent can gift a property to their children and I believe that if that parent survives another 7 years, the tax burden is less. However I would not suggest this for your mother as she only has one property and could of course have problems if you two fell out (or you became mentally unstable in some way and wanted her out of the house… sounds weird but such things do happen after car accidents, trauma etc).

Don't listen to the other people discouraging you from being a LL. There is a lot of snobbery around with people assuming (wrongly in my opinion) that poorer LL will not be such a good one.

You can get a gas care product for about £40 per month to cover most heating / boiler / maintenance issues. Of course you will need to have a fund for emergencies and periods when the property is empty, but I'm sure you have thought of this.

Good luck.

Guest101

hostie wrote: »

Hello, I don't often reply so I have no idea whether you are a troll but your post seemed totally reasonable to me.

You would need to move into the new council place and then buy it to live in yourself. As the other people say, you won't be able to get it on a buy to let basis. I don't know how long you have to live in it before you can let it out but someone else will be able to tell you this.

You need to get help from a solicitor regarding inheritance issues. There is a scheme whereby a parent can gift a property to their children and I believe that if that parent survives another 7 years, the tax burden is less. However I would not suggest this for your mother as she only has one property and could of course have problems if you two fell out (or you became mentally unstable in some way and wanted her out of the house… sounds weird but such things do happen after car accidents, trauma etc).

Don't listen to the other people discouraging you from being a LL. There is a lot of snobbery around with people assuming (wrongly in my opinion) that poorer LL will not be such a good one.

You can get a gas care product for about £40 per month to cover most heating / boiler / maintenance issues. Of course you will need to have a fund for emergencies and periods when the property is empty, but I'm sure you have thought of this.

Good luck.

I'm sure he hasn't thought of this.

Being a financially poor LL means that repairs cannot be completed as quickly as by a solvent LL.

It's simply a case of not having the money. Doesn't make them a bad person, but not a great LL.

[Deleted User]

Your ideas are so questionable I'm finding it difficult to find the words. This does not even seem to occur to you.

As the 'plan' depends on many factors, I surely hope it all comes to nothing.

Besides which, your mum is 58, so very young for it to be decided she will never have another relationship. So you could end up with nothing as far as she is concerned.

The BTL plan has already been shown to be difficult. The rental idea is financial viable if you could legally get a mortgage, and you don't get a single void period or bad tenant or major repair need. But if any of these things occur, it could cost thousands when you don't have it.

I suspect the £'s signs you are seeing are blocking your view.

Pixie5740

If I've followed your plan correctly you currently have a home for you and your family to live in (possibly under a bridge?). You want to swap your current home for another one to get a whopping big RTB discount. However, you're not going to live in this new home but instead you're going to move into your mother's home and your mother is going to live in some granny flat annexe in her own home? Have I followed that correctly?

Have you researched what being a LL entails and done your sums?

headhurts.com

Thanks everyone, no troll here!! Will defiantly look into the buy to let mortgage.


The whole being a landlord thing.... My partner works in the trade and can do most things (apart from boilers, electrics) which im sure will help. I have thought about the fact there will be times where the tenants wont pay or the place is not occupied, but we will have two incomes from me and my partner to cover that.


A get rich scheme maybe, probably not quickly, and lawriejones1...we are non smokers.


If it turns out that we cant get a buy to let mortgage, then another option would be is to ATTEMPT to find a council house that we intend to buy... that can house us and my mum. And then rent my mums house out. That will be very hard.


I think everyone can surely appreciate that I am trying to find the best option for my family (I wont hold my breath though!?!).