Buying local authority flat via existing tenant (family member)

Parthenon

My wife and I are both a few years from retirement, are close to paying off our mortgage and have no children. We have an aunt who has lived in the same council ground floor studio flat for 38 years. It’s in one of the most sought after cities in the UK (not London) where central 3/4 bed detached houses routinely sell for £1M+. The flat is in a nice location, the main aspect being over a large, communal grassed area with a small (non flood risk) river 100 yards away. A similar flat in the same development sold recently for £143k. Another is up for rent at £750 per month.

The local authority operates right to buy and other tenants have done so. Auntie is 90, recently diagnosed with cancer (now in remission), and does not have the funds to buy, but does see the advantages of recouping the benefits of her 38 years rental payments and passing them on to family. She’s recently had a new kitchen and bathroom, new double glazing and door.

Understanding that there are likely to be hurdles, what would be the pros and cons, of us fronting her the purchase price (estimated at half market value) on the understanding that we become her landlord for the rest of her life, her somehow paying us the same rent she pays now, with a legal arrangement that she leaves the flat to us in her will, potentially for us to use at weekends, rent out, and eventually sell.

I’m sure there are many wrinkles in this scheme. Does anyone have experience of doing anything similar?

mrginge

What an absolutely delightful plan.

mrginge

I'm not sure why you want to give her the security of a life tenancy though. Wouldn't it make more sense to kick her out after a few months?

Pixie5740

You can't buy it using her discount. The only person who can is your aunt as she is the one with the right to buy.

If she somehow managed to raise the funds (unlikely any lender will give her a mortgage due to her age) then it would have to remain in her name for at least 5 years otherwise she would have to repay some or all of the discount.

In her shoes I would rather have the council as my landlord with a lovely secure tenancy than you and your AST.

So you see there are more than a few wrinkles with your plan.

bnegative

Auntie has already reaped her rewards for her 38 years of reduced rate rental payments im afraid.

theartfullodger

Ah, brilliant.

What about those key British values of decency & fair-play??

silvercar

You can't prevent her changing her will. So the cats home could inherit rather than you.

Nobbie1967

1/10 for trolling, very unimaginative.

Gigervamp

Oh, look at those £ signs lighting up your eyes.

Your aunt has had the benefit of a lovely flat with a secure tenancy for 38 years. When she dies, another person in need will get the same benefit.

Don't you think someone else like your aunt deserves a decent, affordable, secure home too?

If you could go ahead with your plan, you would be taking desperately needed social housing and turning it into a profit making business, renting at market rates which will be more than a social housing tenant would pay.

Does your conscience not prickle just a little bit at that?

Dan-Dan

Parthenon wrote: »

My wife and I are both a few years from retirement, are close to paying off our mortgage and have no children. We have an aunt who has lived in the same council ground floor studio flat for 38 years. It’s in one of the most sought after cities in the UK (not London) where central 3/4 bed detached houses routinely sell for £1M+. The flat is in a nice location, the main aspect being over a large, communal grassed area with a small (non flood risk) river 100 yards away. A similar flat in the same development sold recently for £143k. Another is up for rent at £750 per month.

The local authority operates right to buy and other tenants have done so. Auntie is 90, recently diagnosed with cancer (now in remission), and does not have the funds to buy, but does see the advantages of recouping the benefits of her 38 years rental payments and passing them on to family. She’s recently had a new kitchen and bathroom, new double glazing and door.

Understanding that there are likely to be hurdles, what would be the pros and cons, of us fronting her the purchase price (estimated at half market value) on the understanding that we become her landlord for the rest of her life, her somehow paying us the same rent she pays now, with a legal arrangement that she leaves the flat to us in her will, potentially for us to use at weekends, rent out, and eventually sell.

I’m sure there are many wrinkles in this scheme. Does anyone have experience of doing anything similar?

Oh you absolute horror






Shame on you

Cheeky_Monkey

In the event that the OP is not a troll then my response to them is ....... you despicable, greedy bar stewards :mad: