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Dad buying council house
Argyll_2
Posts: 154 Forumite
After many years my dad has finally decided to buy his council house in Scotland. There's a couple of questions I would like to ask on his behalf if I may?
- He is registered disabled and has been receiving income support for many years. he has been told that if he decides to purchase his house then the DSS will pay the interest on his mortgage, is this correct?
- Will he find difficulty in finding a mortgage if he is on benefits?
- Can anyone recommend a good conveyancing firm that would deal with the sale of a council house in Scotland?
- It state's on my dad's letter from the council that they will offer him a loan to purchase his house if he can supply proof from two building societies that he has been refused a mortgage. What are the general terms from the council? i.e rates, duration etc.
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Comments
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I have heard the council will pay mortgages for low income, disabled people. Also for regular buyers there is a 26 week waiting period where they have to find the mortgage themselves but there is no waiting period for disabled. It is a great idea to do as he will get a really good discount on the house. DSS will pay only the interest and not the principle buy hey if house prices go up like they have been he will keep his rent payments the same and have some equity at the end of the day. Good luck to him. taffy0
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Thanks mate. I've been looking all night on the internet for some tangible evidence but I can't find anything!
Taff i don't understand what you mean about 26 week waiting period! Could you explain again please?0 -
IS (Income support) delay before they pay is 39 or 40 weeks, not 26 unless it's different in Scotland. They also pay a standard rate, not what your mortgage is (they got screw over that years ago so changed the rules). To make things worse they pay 4 weekly not monthly so it's a pain to keep track of the situation and the mortgage company will still be sending you rude letters every other month saying you are x months in arrears.
My worry would be that he will only get a sub-prime type of mortgage because of his situation and the interest rate on that will be well above the standard IS rate, leaving him to find the difference. Did you see the Panorama program on sub-prime, there's a link to it on here somewhere?A house isn't a home without a cat.
Those are my principles. If you don't like them, I have others.
I have writer's block - I can't begin to tell you about it.
You told me again you preferred handsome men but for me you would make an exception.
It's a recession when your neighbour loses his job; it's a depression when you lose yours.0 -
Your father really needs to check with the DWP that they will pay the interest on any mortgage he takes out. Usually DWP will not pay interest on mortgages taken out whilst somebody is claiming any means tested benefit, but because he is disabled & also because you live in Scotland, there may be different rules.The bigger the bargain, the better I feel.
I should mention that there's only one of me, don't confuse me with others of the same name.0 -
Are you sure this is a good idea?
Currently he has security of tenure & any repairs & upgrades will be performed by the council.
If he buys his place & his circumstances change he may lose his home. There are times when right-to-buy makes sense, but I'm not sure buying on benefits is a sensible plan.
What does he hope to achieve by buying his council house?"Mrs. Pench, you've won the car contest, would you like a triumph spitfire or 3000 in cash?" He smiled.
Mrs. Pench took the money. "What will you do with it all? Not that it's any of my business," he giggled.
"I think I'll become an alcoholic," said Betty.0 -
When he dies god forbid then the house he has lived in for over forty years goes back to the council. Only for some immigrant to bypass the queue and get the house!
He wants to leave something for his children.0 -
oh dear me0
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When he dies god forbid then the house he has lived in for over forty years goes back to the council.
Who own it anyway....
This is how council housing was designed. You use it until you don't need it anymore then give it back so someone else can use it.Only for some immigrant to bypass the queue and get the house!
Immigrants do not bypass the queue. If they did there'd be riots. You're being alarmist with this remark.He wants to leave something for his children.
OK so is the taxpayer happy to fund your inheritance?0 -
When he dies god forbid then the house he has lived in for over forty years goes back to the council. Only for some immigrant to bypass the queue and get the house!
He wants to leave something for his children.
Erm maybe it would go to some other deserving family or disabled person who can't work through no fault of their own?
It's not his house, it's the council's, which all taxpayers pay for. Maybe he could have been investing in some other vehicle to leave for his children, or did he not think of that? Oh well, let the council fund your free ride. Good luck getting advice.Filiss0
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