Ways to inherit the right to buy

da_rule

Something else to bear in mind is although your mum has the full 70% discount, this is capped at £77,900 outside of London and £103,900 in London.

This may go up in April as it is linked to inflation.

Carer

Something else to bear in mind that you may not get the full discount even if she qualifies as the council/HA are allowed to deduct the value of improvements (kitchens, bathrooms, central heating etc) from the discount.

csgohan4

Too many I's in the OP's post, what does your mother have to say about you wanting to buy the place and does she understand the disadvantages of this i.e being shifted to a care home

leespot

Does your mum not work? If she can't afford to buy it how will she pay the rent to you for the mortgage that you'll be planning to take out? Or are you going to pay it for her?

Inheritance for anyone is a gift by circumstance, not a God given right. People always seem to forget that to receive an Inheritance someone had to die first - I'd be happier watching my parents blow every penny on themselves and know they lived a full life doing so.

tlc678910

Hi OP,
If you buy the house jointly with your mum on the understanding she will live out her life there then your joint ownership will prevent you from getting a mortgage of your own. (unless you pass affordability for 2 mortgages). You will also have to pay an additional 3% stamp duty as you will own two properties.

Or do you see yourself not buying your own place? Or plan to live with your mum which could possibly be until you are 60 or 70 years old. Won't you want your own place and a family one day?

Tlc

Jamiesmum

I hope my son grows up successful in his own right that he never needs to rely on an inheritance.

I'm forever telling my parents + grandparents not to fuss about those things - my dad is very hung up on leaving something for us.

On the original question yeah you should be able to buy it but there is lots and lots of rules and guidelines you must follow before, during and after your mums death - plus when it comes to selling the house, if you want it just because it's cheap to sell on then it won't work as you pay the discount back on selling within a set amount of time.

If it's a forever home then, OK. Enjoy it. If your mum has had any council work done to the kitchen/electrics/bathroom fitted ect, then the cost of this will come out of the discount, too.

I'm actually not against the right to buy scheme, but I do think there should be regulations on it. It helps so many young families out, or people who have started with nothing and built there way up but have also spent alot of money on there council houses. But I don't think it should become a right like this situation (my personal opinion)

fairy_lights

You need to stop thinking of the right to buy as an inheritable asset. Your mother has a secure lifelong tenancy, isn't that enough?

tim123456789

fairy_lights wrote: »

You need to stop thinking of the right to buy as an inheritable asset. Your mother has a secure lifelong tenancy, isn't that enough?

TPTB, apparently think not


tim

45002

mm04926412 wrote:

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.

https://forums.moneysavingexpert.com/discussion/5586355

mm04926412

I posted the thread then thought I'd put it in the wrong sub-forum so I posted it again.