need alot of advice about alot of stuff!!!

headhurts.com

lighting_up_the_chalice wrote: »

Leaving aside the moral judgments for just a moment, the sad truth is that your plan is "do-able".

The first hurdle is going to be finding and securing an exchange with a council tenant. To those who ask why anyone would swap a council R2B with an HA R2A, the answer is that not everyone wants to exercise their R2B. It may also be wise to enquire with your current LL about your existing R2A. You may find the discounts and terms already offered differ little from that of the council, as you would only qualify for slightly more than the minimal discount of 35%.

You may, when transferring to a council property, be offered an initial "introductory tenancy", usually lasting 12 months. During this time, you may be barred from R2B. If that is the case, it may be a good time to get any repairs done that may have been missed by your LL or the previous tenant. As soon as you apply for R2B, their attitude to repairs on the property WILL change.

There is nothing stopping you from exercising your right to buy on Monday and advertising the property to let on Tuesday, as long as you have a BTL mortgage. That is very unlikely to be granted on a R2B during the initial 5 year period. Unlikely, but not impossible. However, it may be worth considering the option of raising the mortgage against mums house, then you have no mortgage on your rented property and you can do with it as you see fit.

Being a landlord can, of course, be a pain in the butt. It can also be money for old rope. Letting a former council property at least gives some assurance that routine maintenance and repair has been carried out. But you need to get some good, independent advice and, I would suggest, join a LL association.

And now, the moral judgments. What you are suggesting is, of course, morally abhorrent. But no more than private landlords who maximise rental income at the expence of the suffering of tenants or sellers getting the best price while they complain about others trying to get their snouts in the trough. I do hope your plan fails in the most spectacular way.

Thanks... I think.


That is what we are currently doing...trying to get a exchange back to council which is proving to be more difficult than first thought.
We have only just found out that housing association (right to acquire) discounts are so much less than council. We have always believed that the discounts were the same, they are not even close.
Although there is talk about h/a homes getting the same discount as council in the future.

What do you mean about the option of raising against my mums mortgage... what does this mean? My mum owns her home. Thanks

headhurts.com

Cheeky_Monkey wrote: »

:T:T:T:T

This particular troll is not clever enough to think of a plan that will actually work :rotfl:

Switching to a council place, save like mad and get a 35% discount and then selling it 5 years on sounds like a plan that would defiantly work ... don't you think??
The idea of living at my mums while renting out is merely exploring my options.

lighting_up_the_chalice

Guest101 wrote: »

How many new homes have been built by councils in this financial year? I can find out if you want, but I'll bet you £500 that it's a lot less than sold via RTB - which is a short term solution to council with serious deficits. - not that you'll have a clue what I'm talking about.

Thankfully no, because you'll be sold the home with terms and conditions. Don't like it? Feel free to enter the open market.

Social housing would be perfect for a lot of people. Shame that some take the absolute !!!! ( yes I mean you ).

It seems your biggest hurdle and one which is likely to last your lifetime is the lack of a moral compass and social awareness.

The problem is 2 fold. A lack of housing stock and the rules surrounding R2B. Neither of which is the fault of the OP. If you don't agree with R2B, blame R2B, not those who take advantage of it. If we were all honest, we'd all accept a large discount on a property we were buying, wouldn't we? As for housing stock? Well, the OP intends to effectively fit 3 households into 2 properties. At least in doing so they are addressing a small fraction of the supply/demand chain and, effectively, increasing the overall housing stock. What have YOU done?

lighting_up_the_chalice

headhurts.com wrote: »

What do you mean about the option of raising against my mums mortgage... what does this mean? My mum owns her home. Thanks

Her home is an asset which she can borrow against. Think of it as your mum borrowing money to buy her house from herself and giving you the proceeds to buy your home under R2B with cash.

lighting_up_the_chalice

headhurts.com wrote: »

Switching to a council place, save like mad and get a 35% discount and then selling it 5 years on sounds like a plan that would defiantly work ... don't you think??
The idea of living at my mums while renting out is merely exploring my options.

It usually applies that your time spent in ANY social housing (including HA) will count towards your R2B, so you may already qualify for the 35% under a council tenancy. Every additional year is another 1% added to the discount.

Guest101

lighting_up_the_chalice wrote: »

The problem is 2 fold. A lack of housing stock and the rules surrounding R2B. Neither of which is the fault of the OP. If you don't agree with R2B, blame R2B, not those who take advantage of it. If we were all honest, we'd all accept a large discount on a property we were buying, wouldn't we? As for housing stock? Well, the OP intends to effectively fit 3 households into 2 properties. At least in doing so they are addressing a small fraction of the supply/demand chain and, effectively, increasing the overall housing stock. What have YOU done?

Oh I do blame the system, but doesn't mean everyone should take advantage.

Well I pay my taxes and have done for years. Normally I agree with the logical arguement, but I feel that this is profiteering at the expense of the needy.

The money the op gets from housing 3 households isn't going to be used solely to support low income families / people which social housing is there for.

Yes the system is wrong, but blame can still be assigned to people who take advantage.

headhurts.com

Also I would like to add that the people I will swap with will be getting a home that we have improved ALOT, in a nice area. When we got this property it was a crap hole, but my partner has made it blooming lovely. It looks like we will probably have to downgrade abit to get back to a council home, therefore giving another family better accommodation.

headhurts.com

lighting_up_the_chalice wrote: »

Her home is an asset which she can borrow against. Think of it as your mum borrowing money to buy her house from herself and giving you the proceeds to buy your home under R2B with cash.

Will look into it.


OK, already qualify for discount. While we are trying to get back to council, we have started to save for deposit.


As far as im aware if you then sell the property before 5 years then I would have to pay back some of the discount.


We have also considered that once we sell home and make some cash... my mum could then sell hers, we then put money together and then go and buy a (lush) home with a annex. Maybe In the country : ) Either mortgage free or low mortgage.


I think I am put off the idea of renting out abit, not to do with bloody morals, need to do more research.


Money makes the world go round and there is no one on this planet that deserves it more than my children.

lighting_up_the_chalice

Guest101 wrote: »

The money the op gets from housing 3 households isn't going to be used solely to support low income families / people which social housing is there for.

Neither is the council house next door. SH is rarely allocated on the basis of income. In fact, income is almost never taken into account. It's assumed to be self regulating that when people earn enough to buy, that's what they do, rather than sitting it out on the SH waiting list.

Nor is SH just for the vulnerable. Plenty of the usual suspects get through too. Homelessness being a case in point. Until the 2011 Localism Act, if you were threatened with homelessness, you had 2 options:

A: Make every possible effort to secure, for you and your family, suitable alternative accommodation in the PR sector. Result - Not homeless.

B: Sit back and wait for eviction, doing absolutely nothing at all to seek resolution to your situation. Result - Social Housing allocation.

Is that who SH is really there for? The fe ckless. the idle, the chancers, those who would take advantage of a system? The OP fits right in.

lighting_up_the_chalice

headhurts.com wrote: »

As far as im aware if you then sell the property before 5 years then I would have to pay back some of the discount.

I wouldn't be in too much of a rush. There is talk of making that 3 years!