Help with right to buy mortgage

Icikle

Hello all,

I am in the process of trying to buy a council property with my mother who has rented for 30 years. I live with her obviously and I am named on the RTB notice.

I am entitled to the property, which has been valued at £72000, for approximately £29,000. However, the council/housing association are saying I have to pay £39,950 because of the cost floor - this means they cant be compelled to the sell the property for less than what they spent acquiring it and maintaining/modernizing it.

I have tried to obtain a breakdown of the cost floor figure as I dont believe they have spent what they say they have in the last 15 years. They wont give this to me and apparently I have no legal right to it.

Is this correct? And if so it is fundamentally flawed and without logic as they could just come up with any figure they wanted. I cant even do a freedom of information request as they arent technically a public body, but, can it be argued that when administering a public service (preserved right to buy), they are a public body for that purpose?

Any help on this would be greatly appreciated.

thank you,

Alice_Walker

Can we get this clear, you're complaining that you've been offered the opportunity to buy a house with a 40%+ discount? :eek:

Icikle

Not sure there was any need for that really?

No I am not complaining. I am asking for substantiation of a figure.

Also no, the current discount is 45%. But my mother has been a tenant for 30 years and is entitled to 60%. If they want to take this away from her, then we want the reasons for this to be substantiated, which I don't consider unreasonable.

System

Im not blaming you but RTB should br scrapped - bad policy.

Why do you think your 'entitled'? I know it's policy and I'm not having a pop, I'm just wondering.

Pixie5740

You are not entitled to the property, your mother is entitled to buy the property, you're just along for the ride since you live with her.

Yes the cost floor can affect (or is it effect, I always get the two mixed up) the discount.

https://righttobuy.gov.uk/apply/things-that-affect-discount-amount/

xylophone

But my mother has been a tenant for 30 years and is entitled to 60%. If they want to take this away from her

I am entitled to the property, which has been valued at £72000, for approximately £29,000. However, the council/housing association are saying I have to pay £39,950

Hmm.........:D

Best be grateful for the "small" mercy of the 40%+ discount?

Locana

I'm afraid when it comes to right to buy queries, you will have to put on your tin hat.

Wouldn't she be entitled to housing benefit if she left work to care for your father?

moneycantbuyyouhappiness

Council housing as it stands is probably much more secure than you having a mortgage for your Mum. If the circumstances are as they say there is a very small chance your mum would ever be evicted.

Why don't you just pay her council rent? Oh sorry I forgot you want to make monetary gain NOT instill financial security for your Mum.

NYM

If they don't have to provide you with a breakdown of the 'cost floor' and I presume they don't if they've already refused, the choice to continue with the purchase is yours.

Accept the *discount* your Mum & Dad have been given, in good faith.

Icikle

There are a plethora of reasons why this is the best all round decision. My dad has never been named on the tenancy sonic anything happened to my man we likely would be evicted in favour of giving the house to a family, which would be serious upheaval for a parkinsons sufferer. Furthermore, I have to be on the mortgage because I'm the higher earned and can afford this, my mother is too old as well so I'm very lucky in a sense that some lenders will overlook her finances despite her being named on the mortgage. I'm also giving her 100% of the equity from day one. The bitterness of some folk is absolutely astonishing, but that doesn't surprise me as much as how they let it get in the way of being civil. If you couldn't give advice, you didn't need to post. I don't even know why I'm bothering to justify myself, I guess I'm just that damn flabbergasted.

xylophone

My mother cannot afford to buy it, I am buying it for her and paying the mortgage. I will never take rent from her. She can then leave work without the financial worry and care for my father who has Parkinson's.

If it were simply a case of allowing your mother to stop work, then you could pay the rent and the objective would still be achieved?

In any event, if your mother left work to care full time for your father, and they were on a low income, would your parents not be entitled to housing benefit, CT benefit, Carers' Allowance etc?

And presumably your father might well be entitled to other benefits in view of his disability?

However, your mother /you have the right to claim the RTB discount which is fair enough and you propose taking on the mortgage to do so.

The HA have advised the amount of the discount ( which is generous) - thank your lucky stars?

Incidentally, do you intend to remain with your parents?

If you ever wish to move out and buy a property of your own there could be CGT considerations/ mortgage considerations etc.