Right to buy help! Living with parents!

hazyjo

Sam1471 wrote: »

And If you read through my posts I would like the home to remain in the family...once my parents are gone, the council rent to new tennants and the home is gone.

Not sure why you'd expect a home to remain in the family - even if they owned it, it would be unlikely. There seems to be a lot of 'sentimental attachment' which I don't really get. Most people's parents' homes will have to be sold when they either need care, downsize, or die. Houses don't usually get to stay in the family, they're sold as part of the estate.


My mum's home has sentimental value to me. My dad died in that house. We grew up there. It's been in the family for nearly 40 years (from new). But I don't feel I have any right to it, nor would I expect it to stay in the family. If my mum doesn't downsize, it will be sold when she dies and the proceeds split. I/we may even go before her! Who knows...


Why can't your parents just stay put in their secure tenancy. I don't get the future thing either - do you really plan to be on your own and live with them for the rest of your life? I'm not sure I've really heard an answer.

Sam1471

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.

I understand where your coming from but my concern is if I was to do that I would then sacrifice the ability to put aside money for a deposit. And public transport wouldnt save me a considerable amount due to my working hours there are no busses etc. So would be high taxi costs.

As for where money goes I already pay for the majority from rent to internet.

If circumstances did happen to change for the better id be happy buying my own house, however house prices seem to increase faster than wages these days making it more difficult for first time buyers

fairy_lights

Another thing to bear in mind is that if/when you decide to move out, you will become your parents landlord, which will bring a whole new set of obligations.

Sam1471

Why can't your parents just stay put in their secure tenancy. I don't get the future thing either - do you really plan to be on your own and live with them for the rest of your life? I'm not sure I've really heard an answer.

Earlier I mentioned it could be paid off in a few years. That would mean after that I could move out if I wanted (would hope to be on a little more money by then too) then maybe I could afford to rent a place.

Gigervamp

Sam1471 wrote: »

1. A discount isnt a freebie however could be a good opportunity to get on the property ladder

But you said you wouldn't want to sell the house, you'd want to pass it on to your children.

When you get on the property ladder, you start small and work your way up. You buy a 1 bed flat, then when you get a long term partner/get married and start thinking about having children, you sell and get a 2 or 3 bed house. When your family expands or your income increases, you buy a larger house, or a house in a nicer area, or where there are good schools.

That's the property ladder.

Anyway, I think it's a moot point if your dad can't get a mortgage with you due to his age and income.

And you seem to be ignoring the very valid reasons why it wouldn't be a good idea for your parents.

Sam1471

Another thing to bear in mind is that if/when you decide to move out, you will become your parents landlord, which will bring a whole new set of obligations.

After reading through a link sent by an early post it states that it would need to be a joint mortgage so wouldnt be a landloard unless i purchaced the other 50% at a later date from my father.

If that was to happen I would seek advice from a family member who owns multiple properties rented out

Sam1471

But you said you wouldn't want to sell the house, you'd want to pass it on to your children.

When you get on the property ladder, you start small and work your way up. You buy a 1 bed flat, then when you get a long term partner/get married and start thinking about having children, you sell and get a 2 or 3 bed house. When your family expands or your income increases, you buy a larger house, or a house in a nicer area, or where there are good schools.

That's the property ladder.

Anyway, I think it's a moot point if your dad can't get a mortgage with you due to his age and income.

And you seem to be ignoring the very valid reasons why it wouldn't be a good idea for your parents.

Property ladder may have been the incorrect term. But im sure after being paid off it would help towards getting a 2nd mortgage in years to come if I wanted to go down that route.

I cant see there being a problem with getting a short term mortgage for half what i can borrow as a maximum.

And as stated before it was my father that mentioned it...all I am doing is looking into it. Looking into all the pros and cons. Is that not the right thing to do? To seek knowledge from others?

I dont have any specific expertises in the subject, just the financial understanding hence why I posted on a forum

hazyjo

Sam1471 wrote: »

Earlier I mentioned it could be paid off in a few years. That would mean after that I could move out if I wanted (would hope to be on a little more money by then too) then maybe I could afford to rent a place.

Would love to know how you can afford to pay off a say £40k mortgage over a few years. I can't, and am probably earning considerably more.


If you're talking about then being able to afford to rent a place, I don't get why you don't just wait those few years then go rent somewhere.


Is it because you want to own something? But you won't be getting rent from it, nor will you be selling it. What am I missing...

Sam1471

Would love to know how you can afford to pay off a say £40k mortgage over a few years. I can't, and am probably earning considerably more.


If you're talking about then being able to afford to rent a place, I don't get why you don't just wait those few years then go rent somewhere.


Is it because you want to own something? But you won't be getting rent from it, nor will you be selling it. What am I missing...

Im thinking long term Ive always got a house left for me free of rent. 40k mortgage is around £700per month over 5 years due to a good LTV. However it could be less than 40k and I can pay a few thousand up front which would either lower the payments or mean I can pay it off quicker. Rental accomodation for a house near me is £650 - £750 upwards. People rent a room out for £380-£400 near me. Yeah I would have very little money for a few years but I have a very inexpensive lifestyle.

And this isnt the only thing I am looking into. I am also looking at first house purchase schemes to see what my options are. The drawback is It is mostly things for new homes which are even more expensive

Pixie5740

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.

Your posts come across as though you have decided to go ahead with it. I've mentioned twice, now three times, about finding out about a joint mortgage with your father. Your plan hinges on being able to finance it so my advice is to find out if it's even possible.

Sam1471 wrote: »

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.

You plan on paying a £40k mortgage off in 3-4 years so keep saving for another 3-4 years and you'll have £40k to put towards your own place. More if you take advantage of the LISA. Consider moving to a less expensive area and you could buy your own place even sooner. Many first time buyers don't end up in their number 1 choice area.

Sam1471 wrote: »

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

There's more to home ownership than paying the mortgage though. Property is a highly illiquid asset. All your money will be tied up in this property until your parents are either in care or have shuffled off this mortal coil. Meaning when you do eventually move out you'll be paying private rent which will be higher than the rent you are paying now whilst having to save up a deposit to buy somewhere which is exactly the same situation you will be in if you just moved out now.

Your parents have a secure home. If you buy it then they will be less secure than they are now.