Ways to inherit the right to buy

mm04926412

I am currently at university, I grew up in a council home with my single mum..

It's something I've always known growing up that I basically have no inheritance, however, my mum recently told me she has accumulated a 70% discount on her council home via the right to buy scheme on social housing, she doesn't have the income or the money to get a mortgage, but it is likely that I will probably be in a position when i graduate and work for a few year to be able to buy the house at said 70% discount. My mum pointed out to me that that potential for the right to buy discount was basically a solid asset that she had. Legally what are all the ways that could be secured.

Which of the following are feasible

1. If my mum died could I inherit the secure tenancy and buy my family home outright at the same discount wait until it's legal to sell it and use the difference to pay off loans with funeral expenses or my current mortgage, this seems like the best plan to have since it doesn't require a coordinated effort unless something happens to my mum.

2. Could we both put money towards buying the property when I'm on a stable option and then the family home goes to me in her will

3. Could I accumulate money in a savings account in the future and act as the guarantor for my mum?

There's two motivations here. I want my mum to not have to pay rent anymore and have peace of mind in her old age and my mum wants to be able to leave me something should she pass away but we both are seeing her right to buy discount as a solid asset that we can't afford to let dissapear and leave to chance.

Any advice would be appreciated, because otherwise I would genuinely have nothing if anything happened to my mum in the near future i would have nowhere to go, so knowing I could at least attempt to get a discounted mortgage on my family home would be massive peace of mind. Apologies if I'm rambling I just know people have ethical issues with right to buy and I don't want to make it look like I'm taking the mick since to be honest I'm not sure if I'm comfortable with it myself but I thought I should at least ask.

Pixie5740

Lots of people don't inherit much if anything when their parents die. One shouldn't go through life hoping for an inheritance. Should I live to a ripe old age my will shall say, "being of sound mind I spent the lot."

The RTB isn't really an asset and it's something only your mum has the right to exercise. If you live with your mother then you might be able to make a joint application with her but that's it.

Whilst you don't want your mother to pay rent anymore who will pay for the repairs and maintenance to the property? The good thing about your mother owning her home is that should she require residential care in her later years then the equity in her home will be used to fund it which should give your mum some options rather than having to rely on some council run care home. Of course that would result in little or no inheritance for you.

Jon_B_2

Why are you hung up on an inheritance? I'd rather my parents lived longer and spent all their cash than leave my sister and I some dough.

Besides, most inheretence pots are wiped out paying for care in later life...

sparky130a

mm04926412 wrote: »

There's two motivations here. .

No, there's only one. At least be honest.

journeymanpro

this should be fun!!!

csgohan4

popcorn comes out....

da_rule

I'm not going to enter into discussion on whether right to buy is an asset, I'm just going to address your questions in the best way I can.

As a family member you have a right to buy with your mum as long as you occupy the house as your main/only home for a period of 1 year before the application. You and your mum can then buy the property jointly (potentially with a joint mortgage). When your mum does pass then you could inherit the whole house. There are obviously up sides and down sides to buying property and, with right to buy, there are restrictions on selling the house within the first 10 years. When they work out the discount they use the person who has the longest tenancy period (and therefore the largest discount - i.e. Your mum).

You can only inherit the tenancy if (assuming the tenancy pre-dates April 2012) you were living there with you mum for 12 months before she died. If, on the off chance the tenancy was after April 2012 then the tenancy could exclude succession so you'd need to check it.

Don't think that you can buy a house and then sell it right away using right to buy as you'll owe the council a lot of money if you do that.

seashore22

Neither my husband nor I will inherit from either side of the family. I suggest that you take responsibility for your own wealth and happiness and stop focusing on a non existent pot of money.

Just for context, my parents have lived in council houses all of their lives and none of their children has agonised over a lack of inheritance. None of them went on to live in council properties either. We all found our own way in the world without the advantage of a degree, so you already have an advantage that we lacked. Be thankful.

ViolaLass

You say you want your mother to not have to pay rent any more. So if you got a mortgage, would YOU pay it? If so, you could pay her rent for her.

Missus_Hyde

this should be fun!!!

csgohan4 wrote: »

popcorn comes out....

Oh I do so love these RTB threads! :dance:

AdrianC

mm04926412 wrote: »

I want my mum to not have to pay rent anymore

Can she move in with you?