Right to buy help! Living with parents!

Red-Squirrel_2

Sam1471 wrote: »

People just making the assumption Im looking for a quick cash in at my parents expense. Yet it was my father who told me about it as I never knew anything about 'right to buy' before hand.

That still doesn't mean it's the right thing to do.

I expect lots of parents would disadvantage themselves for their children to benefit, if their children are decent people they don't take advantage of that instinct.

Sam1471

Who from? If your father's half was needed to pay for care the house would have to be sold to release those funds.

If I payed the mortgage off in a few years then there may be the option of another motgage for the other 50%...maybe even borrow against my 50% for a low interest rate

[QUOTEWill your siblings be putting in a claim for a share when your parents die?
[/QUOTE]

We're not all from that kind of family. My brother encouraged it and said hes wasted money all his life and would like me to be successful and invest my money in the house...plus as said before it would be left to me. As i have payed the mortgage.

Red-Squirrel_2

Sam1471 wrote: »

If I payed the mortgage off in a few years then there may be the option of another motgage for the other 50%...maybe even borrow against my 50% for a low interest rate

We're not all from that kind of family. My brother encouraged it and said hes wasted money all his life and would like me to be successful and invest my money in the house...plus as said before it would be left to me. As i have payed the mortgage.

You don't become successful by pulling the rug out from under your mum and dad for your own gain.

If you want to be successful, look at a career change maybe? Or think about how you define success, it doesn't have to be about property.

Sam1471

But you're happy to take advantage of the huge discount on the house?

My parents have worked all their life and payed their taxes etc. My parents have been entitled to that discount and If my farther suggests the right to buy scheme to me why would I not look into it? I'm working full time, I pay my way, I recieve no benefits...funny how people look at a discount however if my parents owned a house and left it to me without a penny leaving my pocket people wouldnt look twice. The fact is im willing to buy it due to the price being within the limit that i can borrow

Sam1471

You don't become successful by pulling the rug out from under your mum and dad for your own gain.

How does this affect my parents...I would pay it off and they would continue to live in it. It will hardly change their circumstances. As said before It was a suggestion from my father.

Pixie5740

Sam1471 wrote: »

I have worked extremely hard for what little I have and as I can't get a significant mortgage I got a car what I always wanted. Working hard and having little to show for it makes you feel down so why not buy a car that I have always wanted...does it mean I have finance? No. Does it mean the car was expensive? No. The car I own is 15 years old and a dream car for me. Yeah its expensive on fuel etc but dont just assume Ive put my lifes savings into a car. But if i moved out then yean the running costs would cause me to sell it as I would struggle to get by living on my own

And my father supports the idea hence why I am trying to find out more about It...

I didn't make any assumptions, you are the one putting words into my mouth. I just pointed out that life comes down to choices. You have prioritised having a "nice" car just as some people prioritse having holidays or designer clothes. Very few people can afford to have it all. I'm sure I've seen a poster with the signature, "I can afford anything I want....as long as I don't want much."

In any case your father appears to support you buying the property with him and you seem to be hellbent on doing it so your next step is finding out if anyone will give the pair of you a mortgage. You can DIY this or you can engage a mortgage broker ideally one who specialises in RTB mortgages.

Cakeguts

Sam1471 wrote: »

How does this affect my parents...I would pay it off and they would continue to live in it. It will hardly change their circumstances. As said before It was a suggestion from my father.

OK well here is some information coming from someone whose parents couldn't get a council house and had to buy one. I also couldn't get a council house and had to buy one so we know about the pitfalls associated with buying a property. You are not in such a good position because from what you say your family have only ever rented.

If you buy a house you have to save all the time as much money as you can. This money is to pay for repairs, painting the house, new windows, new doors, new roof or roof repairs, guttering repairs, new kitchen, garden fences etc anything that needs to be done to a house you have to pay for. There is always something that needs maintenance. You will have to buy contents insurance because if you get a burst pipe you will have to pay for the plumber to repair the pipe and then you will have to claim on the contents insurance if you need new furniture or carpets. The council will not pay for anything to do with a privately owned house. You will also need to pay for buildings insurance. This is in case something goes wrong with the structure for example if there is bit of subsidence the building insurance will cover the repairs. You will need to pay for life insurance so that the mortgage gets paid off in the event that you die unexpectedly. You will need this so that your parents don't lose their home.

If you become ill and are no longer able to pay the mortgage there are no benefits that will pay it for you. You might get the interest paid for a short time but if you are unable to pay the mortgage the house will be repossessed and then you and your parents will become homeless. Have a think about how your parents will get on in a shared room in a private rented house. They will not be rehoused by the council if the house is repossessed because not paying a mortgage is regarded as making yourself intentionally homeless. So what people who have mortgages have to do is to build up large amounts of saving so that they can pay the mortgage if they are ill out of savings. However if you continue to be ill and can't work because you own the house there will be no housing benefit so ultimately you will have to sell the house and buy something very small and cheap or sell it and go into privately rented accommodation.

The problem with owning your parents council house is that if something goes wrong they are stuck. They can't get another council house and they would have to rent something privately which is likely to be not nearly as nice as the house they live in now.

What you are thinking of doing is a huge risk to the housing for your parents and this is because they don't have an income. The house that they have now is theirs for as long as they pay the rent. If you were not there they would get housing benefit to cover the rent so for them the best option is to continue to rent their house from the council.

When you get older and you own a home you do not get offered retirement flats or bungalows owned by the council you have to buy your own. House owners have to pay for their care in nursing homes.

The best interests of your parents are to not under any circumstances buy their council house. They don't understand about the problems of home ownership and neither do you.

The absolute best thing you could do for them is to move out and live somewhere else. If you move out they get everything paid for and they will get taken care of financially for the rest of their lives.

Sam1471

In any case your father appears to support you buying the property with him and you seem to be hellbent on doing it so your next step is finding out if anyone will give the pair of you a mortgage. You can DIY this or you can engage a mortgage broker ideally one who specialises in RTB mortgages.

I haven't made even close to a decision on it. I posted on the forum to find out more about it from people who have more knowledge about it than myself. However only a few have actually posted with informative information without being insulting or derogative.

I actually spend very little on myself to put money aside for a deposit. And I would hobestly give up my car to buy a house. But with a mortgage limit of 75,000 i would need around 40,000 - 50,000 for a nice apartment. I dont have anywhere near this kind of capital.

I thought i would look in to this as I pay the rent anyway so seemed worthwhile to find out more.

Cakeguts

Sam1471 wrote: »

I haven't made even close to a decision on it. I posted on the forum to find out more about it from people who have more knowledge about it than myself. However only a few have actually posted with informative information without being insulting or derogative.

I actually spend very little on myself to put money aside for a deposit. And I would hobestly give up my car to buy a house. But with a mortgage limit of 75,000 i would need around 40,000 - 50,000 for a nice apartment. I dont have anywhere near this kind of capital.

I thought i would look in to this as I pay the rent anyway so seemed worthwhile to find out more.

From your point of view knowing nothing about owning a house or how it would affect your parents it seems like a good idea but when you understand the dangers of your parents becoming homeless and the costs involved with owning a house it isn't something that is such a good idea.

Also you need to learn to live on your own this is a very important part of becoming an adult. Your next step is to move out. It takes about 2 years of living on your own to learn how to do it. Living on your own is also very good practice for buying your own place (you learn where the money goes.)

Lots of young people like to live in flats because then the repairs are paid for out of the service charge and there is no garden to maintain which means that there is plenty of spare time to socialise and make new friends.

When you look for a flat to rent see if you can get one where you can get to work on public transport then you don't need to worry if the car wears out.

Sam1471

OK well here is some information coming from someone whose parents couldn't get a council house and had to buy one. I also couldn't get a council house and had to buy one so we know about the pitfalls associated with buying a property. You are not in such a good position because from what you say your family have only ever rented

If you and your parents could go and buy a house then maybe that is why you was declined council housing...its not as easy for some of us to go and get a house. Living in a council house is far from luxury housing and maintanance is done to a budget.

I understand all the pitfalls that may or may not come which is something that can happen regardless of what property is purchased. But if the house was paid off in a short period then money could quite easily be put aside. And im sure home insurance would cover significant problems (pretty sure you have to have home insurance for any mortgage now) Plus I would take out life insurance on myself if i was to get a mortgage which was suggested in a meeting at my bank a while back.

As stated, i came on here looking into it to get what information I can