Ways to inherit the right to buy

Cakeguts

mm04926412 wrote: »

My dad died when I was very young and so was he and that's the reason we were struggling to begin with financially, it's uncomfortable to talk about it but it does make me scared it'l happen again.

I'm not worried about not having an inheritance when I'm independent, I'm worried about where I'd live independently between university years how I'd cope if something happened in the short term, of course on top of the stress of losing a parent but I imagined that went without saying. My Dad has already passed away and all my mum had to look after me on her own after that was a fifth of his state pension.

In the long term, if I'm doing alright, I actually would just want to help my mum in her retirement and buy the house for her so she isn't kicked out or anything, and not being able to buy the house like she would have been able to 20 years ago if my dad was still here has put her in a bad situation that I really would like to see her out of.

You aren't listening. Your mum is not in a bad situation now she is in an excellent situation. She doesn't need you to buy her house in retirement she can stay there or if she wishes she can downsize into a council owned retirement property. As long as she lives in a property owned by the council she has nothing to worry about.

If you buy her house that is when she is in a bad situation because she is relying on you to pay the mortgage and you are saying that you only need to buy the house if you are not in a good financial position. You have got to be in an excellent financial position to pay a mortgage because if you are not in an excellent financial position and the house gets repossessed your mother will end up retiring to a homeless hostel.

How can the risk of retirement into a homeless hostel be better than renting a council house?

mm04926412

Cakeguts wrote: »

You aren't listening. Your mum is not in a bad situation now she is in an excellent situation. She doesn't need you to buy her house in retirement she can stay there or if she wishes she can downsize into a council owned retirement property. As long as she lives in a property owned by the council she has nothing to worry about.

If you buy her house that is when she is in a bad situation because she is relying on you to pay the mortgage and you are saying that you only need to buy the house if you are not in a good financial position. You have got to be in an excellent financial position to pay a mortgage because if you are not in an excellent financial position and the house gets repossessed your mother will end up retiring to a homeless hostel.

How can the risk of retirement into a homeless hostel be better than renting a council house?

If that is indeed the case and she is in a good situation now then I'll trust you.

Just to clarify again I was asking

1.I am still dependant on my mum, if she died while I was still dependant on her since being able to come home at summer keeps my head above water I wanted to know if I still had her right to buy discount so I could stay in my own home, my dad already died when i was young and that had catastrophic impact so that's why I'm even thinking about this if I had to sell the property I thought it might pay off any credit card debts I brought on or something if that actually happened.

2. If I had savings when I was older would helping her to buy the house in this way actually benefit her, I thought that that ability to buy the house was essentially free money she hadn't claimed but clearly I've been thinking about it too simplistically.

from what you are saying it seems that this was a non-starter, just please don't think I'm some cruel hearted mercenary who's thinking of my own mother as a property investment because I'm really not. I mean at minimum surely I wouldn't care what you thought of me if that were true.

csgohan4

Either way Op is a long long long way in buying a house, things may change in the future, including the RTB scheme, hopefully this will be rescinded.


Good luck to the OP what ever happens. Good Intentions do not always lead to a good ending.

Mojisola

At the moment you don't know where in the country you will be working after uni.

If you're committed to staying at home with your Mum because she needs you to pay the mortgage, you might have to turn down your dream job.

Cakeguts

mm04926412 wrote: »

If that is indeed the case and she is in a good situation now then I'll trust you.

Just to clarify again I was asking

1.I am still dependant on my mum, if she died while I was still dependant on her since being able to come home at summer keeps my head above water I wanted to know if I still had her right to buy discount so I could stay in my own home, my dad already died when i was young and that had catastrophic impact so that's why I'm even thinking about this if I had to sell the property I thought it might pay off any credit card debts I brought on or something if that actually happened.

2. If I had savings when I was older would helping her to buy the house in this way actually benefit her, I thought that that ability to buy the house was essentially free money she hadn't claimed but clearly I've been thinking about it too simplistically.

from what you are saying it seems that this was a non-starter, just please don't think I'm some cruel hearted mercenary who's thinking of my own mother as a property investment because I'm really not. I mean at minimum surely I wouldn't care what you thought of me if that were true.

I don't think badly of you. I realised that if your mum lived in a council house you wouldn't really understand the difference between that and owning a property. Now you do. That is very good because you now have a much better idea of what property owning is and hopefully this will help you when you come to buy your first home on the open market.

Have a bit of a think about this. Are you hoping to get a good job after your university course? If you are then you need to get some work experience because this is extremely valuable.

When you get your first job it could be anywhere in the country so it is unlikely that you will be returning to your mum's house. You will have your own home and you will visit your mum at hers.

sparky130a

mm04926412 wrote: »

Well the whole thing came up because my mum mentioned she regretted not buying when she was a lot younger. You ask these questions when you don't know what the unforeseen consequences might be, since her concerns about buying were what if she lost her job I thought I could help and give her the cash for it because she is my mum so I could pay the mortgage if she couldn't.

But it isn't your cash is it. Grow up.

da_rule

leveller2911 wrote: »

Can you post a link to this because Council housing was/is different from Housing Association. Council tenants could ,depending on how long they have been a Council tenant build up a discount of up to 70% off the market value of the property

The cap is imposed by Section 131 Housing Act 1985 (Limits on Discount). Specifically, Subsection 2, which sets out that the amount of discount may be capped by order of the Secretary of State. The current order sets the cap at £77,900 (£103,900 in London).
https://righttobuy.gov.uk/about-right-to-buy/
The order is usually updated in early April to reflect inflation.

This means that if you have a property outside of London worth approximately £111,300 and the full 70% discount the amount of discount you receive will be capped at £77,900 as this is the lower amount of either the cap value or the discount percentage.

tlc678910

Hi OP,
I don't doubt your good intentions but fear buying the property might not be best for you or your mum.

Not best for you because you will most likely not be able to get your own place (following these boards I see lots of threads of people who cannot get a mortgage with their partner because they are named on a mortgage with their parents or an ex partner - search the forums)

And not best for your mum
because she has a secure tenancy that she can keep even on a low income and claim housing benefit.

Why do you think your mum would have more money in retirement if she bought her property? My auntie owns her home and for an expensive boiler problem had to look into equity release and trying to borrow off her adult children. My nan, who was a council tenant, rang the council to fix her boiler problem and grumbled about having to wait in for them! Of course didn't cost her a penny.

If you are fearful of losing your home find out if you are or can be named on the tenancy so you could keep the tenancy if anything happened to your mum in the very short term and still have a home to go to.

I think some council tenancies can be inherited by people that live there but I don't think the discount can be inherited.?

Then hopefully your mum will live for many decades and you will have long since moved to a home of your own but in the short term that would provide some peace of mind.

Tlc

Cakeguts

mm04926412 wrote: »

It means I live with my mum when I'm not at university and would have come home for a while when I graduated before finding my own place and I would get into debt very quickly if I couldn't come home at summer and had to pay rent with money that generally runs out at the end of term. If my house was gone i'd have to hastily string together some sort of extra residence and I'd probably max out my student overdraft and I don't know if I could find a job fast enough to sort it out. It's not like thats all I'd be worried about if my mum died but this is a forum about these sorts of things after all talking about the obvious emotional impact of that isn't probably what anyone here is interested in hearing.

I thought that buying at around 50 would still benefit my mum in the long-term since her main concern was what if she lost her job and since the house is not a very expensive one at all it seemed possible that I could get enough of my own savings together that I could give her a safety net. I don't really have that much to gain financially at all from the house since our neighbour bought hers for around £10,000 I know you don't believe but its about not losing where I grew up and something I genuinely thought would help her in a way that was effectively free. I even suggested she could do equity release and I'd still be perfectly willing to give her the money. Inheritance was only on my mind if something happened as of right now not in 30 years because then I might have been able to take on the tenancy find a job and try and buy it with it hopefully being quickly affordable to me with the discount. I'm concerned if she stays on as a tenant she might struggle when she retires since she only has a state pension as well.

This isn't going to happen if you do what you are supposed to do while you are at university. University learning doesn't last from September until May it lasts for the whole year. What you are supposed to do is to work for the whole of the summer holidays to get work experience. Having done work experience is as important as your degree for getting a job. So you get a job and you work for the whole of the summer holidays. If you are working for the whole of the summer holidays every year you should never be short of money in the summer. When you get towards the end of your degree you will have an idea of what grade you are going to get and at that point you start to apply for jobs. You don't wait until you have finished the degree. The idea is that if you are not at university you should be working.

ViolaLass

Beetroot24 wrote: »

The OP sounds like my SIL. My husband grew up in social housing. It doesn't bother him that he won't inherit anything, he works unbelievably hard. It really bothered his sister though. She ended up taking life insurance out for their parents, which she pays for herself. Unbelievable!

What's the problem? She wants an inheritance and is making it happen, with her own money.