Dad buying council house

JasonLVC

Good point t3mor about care homes. Yes, the Dad would have to fund his own care home fees should he need to be looked after more.

The council will only sell to the tenant. I've seen siblings pay for their parents mortgage but the home still belongs to the 'ex-tenant' so a sibling could pay a mortgage for 5 years and the home owner turn around and say "Thanks and up yours" and there is no legal recourse for the sibling or property to own. I've also seen siblings buy their parents house and (in the old days when you only needed to keep the house for three years before selling), sell the house and kick out their own parent(s) and leave them homeless after the three years and the council refuses to rehouse them.

The property title deeds will be in tenants name and covenants in place to prevent the sale without the repayment of discounts within 5 years - I'd be very cautious about paying for someone else's mortgage and concerned about haveing a mortgage where the payment may not be able to be met without high risk.

Whilst ex-council houses do not rise in value as quickly as comparable private properties it must be noted that council properties are massively undervalued when compared to similar private properties and that valuation is then reduce further by the discount offered. Ex-council houses usually (not always) are then valued slightly higher thereafter as the stigmas of council housing has gone and the tenant is adding value more than a council would (ie, new windows, kitchen, etc) - the valuations are held back slightly not by the property condition but usually the location or the ratio of council v ex-council properties in the area. If all ex-council, property values will be on parity with private sector in my experience.

Families can be very strange things indeeds.

Argyll_2

Hey for all you people jumping on their high horse. My dad paid his rent for almost 30 years before he was injured and had to be medically retired. The reason he never bought it before was because he didn't earn enough to buy. Now he has that opportunity. Get over it

Oh and by the way squit now, in future do not respond to any of my posts as you seem a right fud!

dontshootthemessenger

Argyll wrote: »

Hey for all you people jumping on their high horse. My dad paid his rent for almost 30 years before he was injured and had to be medically retired. The reason he never bought it before was because he didn't earn enough to buy. Now he has that opportunity. Get over it

Oh and by the way squit now, in future do not respond to any of my posts as you seem a right fud!

If your dad didn't earn enough to buy or to save for an inheritance that's just bad luck for you. Also please think about his security. As has been pointed out, at the moment he has security of tenure and all repair bills etc paid for by the council. That will change if he does buy, and if things don't go his way he could end up not only disabled but homeless.

krisskross

Argyll wrote: »

Hey for all you people jumping on their high horse. My dad paid his rent for almost 30 years before he was injured and had to be medically retired. The reason he never bought it before was because he didn't earn enough to buy. Now he has that opportunity. Get over it

He still doesn't 'earn' enough to buy it. Have you checked that his present housing benefit will be converted to cover any mortgage payments?

I still don't understand why you think your father is owed something because he paid his rent. We all pay for the goods and services we use and don't expect that we have cast our bread upon the waters and that it should come back buttered and jammed.

You Argyll should get over your money making scheme that risks your father's home.

epz_2

as far as i can see the risk reward ratio is by far against buying.

possible rewards

1) gets a house which has appreciated in value enough to leave a lump some to his kids when he dies. no capital will be paid off the mortgage so whatever % discount the council offer and house prices growing by more than significantly more than inflation is the only way to benifit.

thats about it


possible risks

1) government changes rules and stops paying peoples mortgages, your dad gets reposessed and made homeless.

2) you dad needs to go into a care home and the council make him pay for his costs by selling the house, defeating the point of buying.

3) repair costs are over what your dad currently pays leaving him paying more each month in the hope that 1 or 2 dont happen so you can benifit when he dies.

4) he needs substantial modifications to the house but as the council dont own it anymore they woulnt pay for the work or rehome him.

basicly you are asking him to risk loseing a free house with all the maintenence and adaptions to cope with his disability taken care, possibly even made homeless of on the off chance you get some cash when he dies.

Argyll_2

krisskross wrote: »

He still doesn't 'earn' enough to buy it. Have you checked that his present housing benefit will be converted to cover any mortgage payments?

I still don't understand why you think your father is owed something because he paid his rent. We all pay for the goods and services we use and don't expect that we have cast our bread upon the waters and that it should come back buttered and jammed.

You Argyll should get over your money making scheme that risks your father's home.

Jees where do you people come from?

Firstly it's not my money making scheme. I have no interest in the property. I only posted because my dad asked me for advice and I thought I'd post in here. if he decides to leave me a part share when he's gone then so be it.

Secondly stick to what I asked. Your personal opinions have no interest to me. If you cannot add any valuable contribution to my post then !!!!!!!!!

Running_Horse

Cool. Where do I reclaim all that rent I paid before buying?

lynnexxxo

Argyll wrote: »

Jees where do you people come from?

Firstly it's not my money making scheme. I have no interest in the property. I only posted because my dad asked me for advice and I thought I'd post in here. if he decides to leave me a part share when he's gone then so be it.

Secondly stick to what I asked. Your personal opinions have no interest to me. If you cannot add any valuable contribution to my post then !!!!!!!!!

Hi,
Well I think that your question has been answered in detail - tell you dad that no matter what he has read in the newspapers that him buying his house is not the best thing for him to do. There is no benefit to him from buying his home.

Argyll_2

Running_Horse wrote: »

Cool. Where do I reclaim all that rent I paid before buying?

Are you on crack?

Running_Horse

Argyll wrote: »

Are you on crack?

Yes mate. All those years of renting must mean some entitlement to something for nothing. Everyone else is at it. Where do I get my free money?