Right to buy (parents house)

pickledonionspaceraider

tyty21 wrote: »

They would simply pay the same amount they are currently paying in rent but instead that would go towards the mortgage payments- I would make up the difference.



I'm not sure what is unpleasant about being in a position to enable us to take up the right to buy when they would never have been able to afford to do it on their own...

You seem to forget as a relative and as someone who lives with them at home I have every right to share in their right to buy.

As for when WE sell the house, the plan is for them to be able to use their share of the sale proceeds (plus probably some help from myself) to buy out the half of a small flat my grandmother will be leaving my mother and her brother- again without taking up the right to buy they would never have that sort of money to be able to do that (incidentally neither would I have the money to help them do that).



Losing my job- I am in a professional career and so I don't see that happening however the mortgage amount we are talking about could be covered by working a few shifts in a supermarket each month (with RTB people are rarely 'giged up to their eyeballs and so the whole 'what happens if you lose your job' argument is rather redundant. Besides if everyone thought 'what happens if I lose my job' then no one would ever get mortgages.

Moving out- For sure I will want to move out (probably very soon) but that doesn't change anything? I will continue to pay for my part of the mortgage whilst paying rent somewhere.

As for your point about getting divorced and the house being part of the settlement- this smacks of desperately trying to scrap together reasons as to why you think I'm a bad guy; I really don't think that argument has any merit.



So for all out there who are swift to judge- what I'm trying to achieve is the purchase of the house that I currently live in with my parents by the three of us. For them to have no additional expense than what they currently have and for them to receive a decent sum when we come to sell to enable them to buy all 100% of a flat they will be left and thus live rent free. And yes at the same time I save a lot of money on buying a property but saving money doesn't make me a bad person- if you think that then you're on the wrong site!

Let me get this right........ you are going to take the massive discount your parents have built up over the years... get them to pay most of the mortgage (in line with what they are currently paying in rent) ...you will pay literally a few quid each month to make up the mortgage ...and then you walk away with 90% share...whilst leaving your parents with no security in their old age?

If you were my sibling I would quite literally wipe the floor with you

I doubt very much you are in any kind of professional career due to the fact you are scrabbling around social housing to make a few quid

If your parents had any sense they would cut you out of the deal. They will find that the difference between rent and mortgage to pennies, may even pay less in mortgage than they do in rent.

BrassicWoman

They are going to buy sod all with 10% of an ex council house. why not have a third each, then I will believe your altruism!

Also they have a theoretical share in another house. Not a real share.

You may find the cats home own it, or the present owners have giant gambling debts, or remarry, or any manner of things. Planning on the assets of someone not yet dead.. also reeks of circling vultures.

How will your skint parents replace windows and boilers?

Secure rent, with a housing benefit option if needed, may be a very good option for them... not great for your own inheritence, but with a sound career, you won't need that, surely?

tyty21

pickledonionspaceraider wrote: »

Let me get this right........ you are going to take the massive discount your parents have built up over the years... get them to pay most of the mortgage (in line with what they are currently paying in rent) ...you will pay literally a few quid each month to make up the mortgage ...and then you walk away with 90% share...whilst leaving your parents with no security in their old age?

If you were my sibling I would quite literally wipe the floor with you

I doubt very much you are in any kind of professional career due to the fact you are scrabbling around social housing to make a few quid

Ok firstly I'm sorry- no one is 'taking' anything here. You seem to assume that somehow my parents don't have the inteligence to make these decisions- I can assure you they do. They are allowing me to use the RTB with them.

You now base your argument on the % figure. Again I'm sorry but what business is it of yours to pass judgment on the % we have agreed. They want me to have a large percentage as unlike many of my friends' parents, they are not in a position to give me tens of thousands for a house deposit. Again unlike many of my friends parents', they won't be leaving anything to me. This is their way of being able to give something to me in the same way hundreds of thousands of other parents do for their children.

'No security in their old age'- in case you missed it, this allows them to buy a flat for themselves ergo they get a nice flat in a town/area that is much nicer to grow old in than where they are now, all whilst paying no rent. Your argument again fails.

I don't have any siblings (you're making assumptions to suit your point that simply aren't true).

Finally, I'm not sure how the fact that my parents and I live in social housing would somehow negate me having a professional career. It's 2015 don't you know?

tyty21

BrassicWoman wrote: »

They are going to buy sod all with 10% of an ex council house. why not have a third each, then I will believe your altruism!


Also they have a theoretical share in another house. Not a real share.


You may find the cats home own it, or the present owners have giant gambling debts, or remarry, or any manner of things. Planning on the assets of someone not yet dead.. also reeks of circling vultures.


How will your skint parents replace windows and boilers?


Secure rent, with a housing benefit option if needed, may be a very good option for them... not great for your own inheritence, but with a sound career, you won't need that, surely?

10% today would give them 25k- hardly sod all by anyone's calculation. To buy out the other half of the flat they would need perhaps another 40k- which with their savings/pension/help from me is more than enough. Your point fails.


My nan is an 85 year old Catholic, I don't see her remarrying or having tens of thousands in gambling debts but thanks for the concern. As in a post above, this smacks of desperately trying to throw mud in the hope something will stick.


'Planning on the assets of someone who's not yet dead reeks of circling vultures' - ok in case you hadn't noticed, people die. It's a fact. They also leave inheritances. My grandmother has openly discussed the provisions of her will. It's really not some taboo subject that you need to stick you head in the sand over. It's just an ordinary occurrence in life and if you can't see that then you're living in la la land.


'How will your skint parents afford...' Sorry I don't ever remember saying my parents were skint? They have a household income above average, well off, on no benefits. Of course they've got the money to fix the boiler. In case you aren't aware not everyone living in social housing spends their time split between the dole queue and the food bank. I have no time for your prejudice and stereotypical assertions.

BrassicWoman

tyty21 wrote: »

1 Sorry I don't ever remember saying my parents were skint? They have a household income above average, well off, on no benefits. Of course they've got the money to fix the boiler. In case you aren't aware not everyone living in social housing spends their time split between the dole queue and the food bank. I have no time for your prejudice and stereotypical assertions.

Great. Let them buy the place themselves!

Elfbert

So if your parents buy out the half of this flat - with the 25k from your current joint home and 40k from savings that supposes that this new flat will be worth 130k? But you say they won't be leaving you anything (unlike the parents of your friends...although I'm unclear what they have to do with anything) and you're an only child....so who gets the 130k flat? Maybe they don't like you much afterall

Serendipitious

tyty21 wrote: »

Yes for mortgage purposes we would be jointly liable however under the deed of trust I believe you can set out who will pay what. I will pay the difference between their current HA rent and the mortgage repayments. The beneficial ownership will be split as we'll be TiCs.

My only concern is if the bank assesses my income and includes rent outgoings (as I will want to move out). In that case my income probably wouldn't be sufficient for them to lend the amount needed (even though it would be sufficient to afford to pay the mortgage as my parents would be paying a share).

In that case I guess I would have to include my parents income in the assessment to show that together we can afford the repayments even with my paying rent somewhere else- this then comes to the problem of the ages of my parents.

So in short I guess I need a chat with a good mortgage broker.

Isn't it a condition of RTB that the property being purchased has to be your main home?

tyty21

BrassicWoman wrote: »

Great. Let them buy the place themselves!

They came very close to doing so about 20 years ago however decided not to. Now they can't due to their ages as I've previously said...

tyty21

Elfbert wrote: »

So if your parents buy out the half of this flat - with the 25k from your current joint home and 40k from savings that supposes that this new flat will be worth 130k? But you say they won't be leaving you anything (unlike the parents of your friends...although I'm unclear what they have to do with anything) and you're an only child....so who gets the 130k flat? Maybe they don't like you much afterall

You don't seem to have understood correctly. It's only by exercising the RTB that they will have sale proceeds in order to fund the purchase of the other half. It's only through exercising RTB that I would be in the position to give them money to fund the purchase of the other half. Therefore without exercising the RTB there would be no property to inherit. Moreover the point is for us to get on the housing ladder asap.

The point about parents of my friends giving there children money is to show people on here that parents give their children money all the time- whether it's money for a house deposit or via an inheritance. No one seems to have a problem with that and yet they do with this even though it is the exact same principle just achieved in a different way.

I really feel people need to be less judgemental when they no nothing of the circumstances or the people involved.

tyty21

Serendipitious wrote: »

Isn't it a condition of RTB that the property being purchased has to be your main home?

I would have thought so however I think that would apply at the time of purchase and at that time it will be my (and my parents) main residence. It will continue to be their main residence however I don't think there can be any kind of legal stipulation that it has to remain our main residence otherwise that amounts to a prohibition on me moving out.

So yeah I guess hopefully the bank won't factor any potential future rent payments I would make if/when I move out.