Right To Buy Advice

puzl

Pixie5740 wrote: »

It's really your parents' discount, not yours so if they wanted to transfer the property out of their names within 5 years some or all of the discount would need to be repaid. The council will have the first charge on the property so no changes with the Land Registry can be made without involving the council.

I thought this might be the case and we expected it as such. It's not a big deal, as even if we did decide to sell, we wouldn't be able to do so until 5 years anyway. Thanks for your help.

AdrianC

puzl wrote: »

My question is, would I have to wait 5 years to transfer their share into my name only, or would I be able to do it instantly after purchase (and keep the RTB discount) ?

The discount is cancelled if the property leaves their ownership within the five years.

marksoton

Here's a mad idea. Move out and get your own place and leave your parents with their nice secure tenancy.

puzl

marksoton wrote: »

Here's a mad idea. Move out and get your own place and leave your parents with their nice secure tenancy.

This is such a predictable, drive-by response. Ask yourself this: If you were in my situation, would you waste ~£600/month on rent, in a house that will likely be 2x smaller and less safe than the house I am currently living in, essentially dooming my savings within a couple of years with no option of any gain on my investment, all so that I could have a place of my "own" which trades one set of owners for another?

All the while, my parents get the benefit of me paying more than half for all bills/foods/taxes. Oh and believe it or not, some families actually enjoy each others company and aren't desperate to kick each other out!

Financially, it makes absolutely zero sense to do so. Do you wonder why people are living at home for longer these days when buying a home is essentially out of the reach of the majority of young people? The rental market is an absolute money sink and getting on the property ladder is even harder. For a website that calls itself moneysavingexpert, you'd at least think the users would have some semblance of budgeting and choosing the right investments for their money, but I suppose it's easier just to be judgmental and assume the worst in people, always.

Anyway, thanks to the people who did offer helpful advice.

DPDRC90

Puzl,

Right to Buy is always frowned upon on these boards as you can probably tell by the tone of the replies you've received and obviously Marksoton response. Thumbs up for not falling for the bait and biting whilst being mature in your responses.

In my opinion, you'd be stupid not to buy the home and almost anybody else in your position would be doing the exact same. Good luck with your purchase.

tlc678910

I agree that right to buy usually causes a stink on the boards but if I may paraphrase the problem

"how can I get my parent's right to buy discount transferred to me as quickly as possible and make absolutely sure that this gift from the tax payer doesn't go to who it was intended to, or cause them to have to contribute towards their own care costs" you can see why!

The "in the worst case scenario" e.g. I decide to start a family, go bancrupt etc "they can always just rent privately" (using housing benefit while I keep their wads of discount) did nothing for me either.

Tlc

puzl

DPDRC90 wrote: »

Puzl,

Right to Buy is always frowned upon on these boards as you can probably tell by the tone of the replies you've received and obviously Marksoton response. Thumbs up for not falling for the bait and biting whilst being mature in your responses.

In my opinion, you'd be stupid not to buy the home and almost anybody else in your position would be doing the exact same. Good luck with your purchase.

Thanks. It just seems hypocritical how many of these same users would have no qualms opening and closing multiple bank accounts to engage in switch incentives at the expense of the bank, yet frown upon a government scheme that is there to help people get onto the property ladder. As you say, it just seems ridiculous that people would advice against it, when it offers not only a secure home for my family, but also the potential to triple our money return in 5 years time, if we did decide to sell. All I see is gain, with very little to lose, for all parties involved.

I can understand people's qualms with the lack of social housing as a result of the RTB scheme, but this particular Pandora's box was opened long ago. Any ethical dilemma has long been abandoned as far as I'm concerned. If the option is there and it works for you, then you take it.

puzl

tlc678910 wrote: »

I agree that right to buy usually causes a stink on the boards but if I may paraphrase the problem

"how can I get my parent's right to buy discount transferred to me as quickly as possible and make absolutely sure that this gift from the tax payer doesn't go to who it was intended to, or cause them to have to contribute towards their own care costs" you can see why!

The "in the worst case scenario" e.g. I decide to start a family, go bancrupt etc "they can always just rent privately" (using housing benefit while I keep their wads of discount) did nothing for me either.

Tlc

Then you need to stop paraphrasing and start reading properly. This is a joint claim between me and my family, and all parties would own the house for 5 years, with none of us having any intention to leave. I'm not some stranger who hasn't lived in the house and suddenly wants ownership of it. I've lived there with them for nearly 30 years and we've all paid FAR more into the system than we have taken out. My parents only retired 18 months ago and this is the only time they have ever claimed HB, or indeed, any other benefit. If they could go back in time to when they first moved in, they would have got a mortgage themselves and had it all paid off by now, but alas, what is done is done and we can only think about the future and use the best options we have.

But hey, don't let facts get in the way of your opinion.

tlc678910

puzl wrote: »

Thanks. It just seems hypocritical how many of these same users would have no qualms opening and closing multiple bank accounts to engage in switch incentives at the expense of the bank, yet frown upon a government scheme that is there to help people get onto the property ladder. yes the people entitled to the discount (I.e. Your parents not you)

As you say, it just seems ridiculous that people would advice against it, when it offers not only a secure home for my family, but also the potential to triple our money return in 5 years time, if we did decide to sell. All I see is gain, with very little to lose, for all parties involved. loss for the tax payer, loss for people in need of housing in future, loss of security of tenure for your parents, loss of equity for your parents which might be used towards downsizing, paying rent, care home fees, gain for you.

I can understand people's qualms with the lack of social housing as a result of the RTB scheme, but this particular Pandora's box was opened long ago. Any ethical dilemma has long been abandoned as far as I'm concerned. you have decided their is no such thing as morality? Anyhow the housing providers are trying to not rely on your sense of fairness versus greed but tring to create policies to prevent this I.e. five years before selling etc If the option is there and it works for you, then you take it.

Do you really expect the general public to be delighted for you to take their assets (social housing) and their money (future care costs and housing benefit costs for both your parents and people who have to rent privately as the social housing is sold) and "triple your money in five years?"

marksoton

puzl wrote: »

This is such a predictable, drive-by response. Ask yourself this: If you were in my situation, would you waste ~£600/month on rent, in a house that will likely be 2x smaller and less safe than the house I am currently living in, essentially dooming my savings within a couple of years with no option of any gain on my investment, all so that I could have a place of my "own" which trades one set of owners for another?

All the while, my parents get the benefit of me paying more than half for all bills/foods/taxes. Oh and believe it or not, some families actually enjoy each others company and aren't desperate to kick each other out!

Financially, it makes absolutely zero sense to do so. Do you wonder why people are living at home for longer these days when buying a home is essentially out of the reach of the majority of young people? The rental market is an absolute money sink and getting on the property ladder is even harder. For a website that calls itself moneysavingexpert, you'd at least think the users would have some semblance of budgeting and choosing the right investments for their money, but I suppose it's easier just to be judgmental and assume the worst in people, always.

Anyway, thanks to the people who did offer helpful advice.

puzl wrote: »

Thanks. It just seems hypocritical how many of these same users would have no qualms opening and closing multiple bank accounts to engage in switch incentives at the expense of the bank, yet frown upon a government scheme that is there to help people get onto the property ladder. As you say, it just seems ridiculous that people would advice against it, when it offers not only a secure home for my family, but also the potential to triple our money return in 5 years time, if we did decide to sell. All I see is gain, with very little to lose, for all parties involved.

I can understand people's qualms with the lack of social housing as a result of the RTB scheme, but this particular Pandora's box was opened long ago. Any ethical dilemma has long been abandoned as far as I'm concerned. If the option is there and it works for you, then you take it.

What are you blithering on about. Just grow up and stand on your own two feet and stop holding on to the apron strings that is your parents entitlement not yours.