Can I rent out my Right to Buy House

mrt04

Having read through all comments posted I take on board people comments and opinions regarding this matter. Like I have said before im doing this for my family and my future. I am aware of the possible pitfalls regarding Renting and possible problems i may encounter. bearing this in mind I am going to make sure I make the best possible decision on all the facts given, whatever my final decision is im sure not everyone will agree as thats the fundamental problem with the Human Race everyone has a opinion about everything and we will never always meet eye to eye.

JasonLVC

adouglasmhor wrote: »

Council rents are not subsidised, the reason they are usually cheaper is economies of scale and housing benefits/rent allowance where applied. The reason a lot of council housing stock became too expensive for local authorities to maintain was a combination of mismanagement, gullibility and corruption amongst the councils and their officers.

Council rent is set in law and cannot go over a certain amount. This is generally funded by government grants (and therefore subsidised). The rent from tenants is no-where near enough to balance the books and as each house is sold the rent pool becomes ever weaker.

Corruption is nothing to do with it, nor economies of scale...although I'll go along with the mismanagement and gullibility argument!.

The biggest private landlord is the Church and the Prince of Wales Estate and none of their rents are below market value, trust me!.

foreign_correspondent

dolce_vita wrote: »

I have the chance to buy one right now as it happens.

My 70yo auntie has been a council tenant for over 30 years and her husband died last november. They have no children or other dependants and she recently asked me about buying her house under RTB.
She can't afford it so was wondering whether I would like to as a way of getting the house cheaply and then selling it in a few years and thereby getting some sort of inheritance.

My answer?

No.

I refuse to do so on priciple even though I could make some easy money when I come to sell it.





Sometimes, sticking to your principles costs money

oh arent principles a lovely thing. It is a shame so many people with a bit of cash have driven housing prices up... surprisingly it appears that you are one of them - oh come on... get off your high house!

http://forums.moneysavingexpert.com/showthread.html?t=560307

"I like buying property on the cheap. In fact it's how I made most of my money.
But I tell you this - I wouldn't buy one of these newbuilds if they were going for 40k never mind 60k
pile of !!!!!! and the ghettos of tomorrow"

dolce_vita

foreign_correspondent wrote: »

oh arent principles a lovely thing. It is a shame so many people with a bit of cash have driven housing prices up... surprisingly it appears that you are one of them - oh come on... get off your high house!

http://forums.moneysavingexpert.com/showthread.html?t=560307

"I like buying property on the cheap. In fact it's how I made most of my money.
But I tell you this - I wouldn't buy one of these newbuilds if they were going for 40k never mind 60k
pile of !!!!!! and the ghettos of tomorrow"

I can't see the contradiction that you are implying.

Graham_Devon

mrt04 wrote: »

Having read through all comments posted I take on board people comments and opinions regarding this matter. Like I have said before im doing this for my family and my future. I am aware of the possible pitfalls regarding Renting and possible problems i may encounter. bearing this in mind I am going to make sure I make the best possible decision on all the facts given, whatever my final decision is im sure not everyone will agree as thats the fundamental problem with the Human Race everyone has a opinion about everything and we will never always meet eye to eye.

You may be doing it for your family and your future. Just bear in mind other familes have had no choice but to help you to be able to do this.

The family that further helps you by renting your property, paying the going rate now, and paying you while you cream more out of the tax payer (by not paying any percentage back) possibly helped you too, but all your interested in is charging full whack to load your pocket.

You are taking the pee out of of us all who are taxpayers.

Well done, I hope your proud.

foreign_correspondent

what on earth is wrong with this person buying their council house? He has been paying rent on it for at least three years presumably.

He isnt breaking any laws - it seems that we commend people for being enterprising and getting a bargain... so long as its not buying their own council house... it would be sold to someone else otherwise... stop being so sanctimonious!
To the OP, good luck with whatever you decide to do:beer:

Dolce Vita, the contradiction is that you like to buy property cheap and are happy to make money from it... but dont want this chap to have the opportunity to do the same.

Merton

reformedEffortMaker wrote: »

mrt04, I am sure most people would have taken the opportunity you did if it was offered to them.

Well done in trying to plan for your family.
As you have now learnt, BTL and RTB really really really winds people up on this site. (Wont go into the reasons why I think that is, because quite frankly, I dont want to abusive posts or the denial.)

I have sent you a PM which I hope helps, I would also try contacting your council and mortgage company directly as well as going over all your purchase paperwork. The answer will be there somewhere!

Good luck

You're quite wrong in assuming everyone would act so greedily. Many people have a social conscience and know that one home at a time is enough. We can only hope that the OP very quickly realises that the costs associated with being a LL far outweigh the benefits.

Being a LL carries many legal and social responsibilities. It is not something to be dabbled in by the lazy for the sake of making a quick buck. It is not money for nothing. Let's hope any poor tenants the OP manages to get know precisely what their rights are and insist they are met by the OP.

Toto

PasturesNew wrote: »

Except in the eyes of many you wouldn't be.

What if you manage to buy property2 and rent out property1 .... then:
1] wife/new baby problem (from depression to special care) means wifey won't be working again
2] house prices drop by 20%
3] interest rates increase by 0.5%
4] tenant is tenant from hell ... and when you finally get them out you need £5000 to put the house straight again - even though you never had a penny of rent the last 5 months
5] property1 then sits empty for 3 months
6] you lose your job
7] find a new tenant for property1 ... and the boiler blows up and needs replacing.

Very secure. Very stable.
Superdad to the rescue

Ahh but if his properties are reposessed he can go back to the council and get another one. Don't laugh, I know of someone who has done this.

JasonLVC

Toto wrote: »

Ahh but if his properties are reposessed he can go back to the council and get another one. Don't laugh, I know of someone who has done this.

Yep, Toto. Seen it many times. The Councils have got stricter in more recent years though but only through vigilence, not through any laws. One of the old fiddles included getting the man to buy the council house then he suddenly became 'violent' towards the children, council rehouse wife and kids, husband moves back in to HER council house. The three year rule applies to all tenants so she can now exercise her individual right to buy and now they've got two houses, one for rent.

If the house is repo'd, the home owner will have to go onto the waiting list like everyone else for a council house. If that person just happens to score the highest points (ie, children, single parent, unemployed, immigrant) then they will not wait as long as someone who earns £30k a year. Once they get the grotty little flat they can buy it or ride it out a few years and do an exchange for a nicer property and then buy that one. However the council can consider you intentionally homeless (and therefore no obligation to put you on the housing list at all) if you are seen to have contributed to the loss of your property.

I've seen pensioners living in flats exchange for a nice bungalow and then right to buy it and then bequeth it to their children...all sorts. Right to Buy was a good idea but the legislation was loser than a bowel movement after a curry and has been over-exploited.

margaretclare

dolce_vita wrote: »

I have the chance to buy one right now as it happens.

My 70yo auntie has been a council tenant for over 30 years and her husband died last november. They have no children or other dependants and she recently asked me about buying her house under RTB.
She can't afford it so was wondering whether I would like to as a way of getting the house cheaply and then selling it in a few years and thereby getting some sort of inheritance.

My answer?

No.

I refuse to do so on priciple even though I could make some easy money when I come to sell it.

Sometimes, sticking to your principles costs money

Good for you.

I have nothing against the idea of RTB, but as a place to live, not as a means to an 'inheritance', a word that I really detest.

My daughter and SIL have bought their ex-council house and it does need a lot of work done to it. I have nothing against that idea. It's just the idea of using all those subsidies to make further profits via BTL which sticks in my craw.

I ask again: why is the OP's current home too small to raise a family? Unless they were built as retirement bungalows or one-bedroom flats (my eldest GD is living in one of those), they were mostly intended to be family homes where you could raise children.

Margaret