Right to Buy, Outright

Guerillatoker

Hi guys, looking for a bit of advice. I've already established my eligibility into buying my / my mothers council house (nearly did it on a mortgage last year).

I'm still trying to find the answers myself but am posting this in the hope that some veteran may be able to give me the down low.

1. If I were to buy the council house I live in outright, what would be the additional costs other than the price of the house?

2. If I bought it 50/50 with my mother, could she transfer her half to my brother when she feels she no longer needs it (after the 5 years is up)? Would this carry any additional costs or legal complications?

3. Finally, to those of you who own the house you live in, could you estimate how much the house has cost to maintain - is it minimal compared to rent costs?
(I pay about 320p/m on a 3 bedroom semi detached in a low rent part of the country).

Pixie5740

Guerillatoker wrote: »

Hi guys, looking for a bit of advice. I've already established my eligibility into buying my / my mothers council house (nearly did it on a mortgage last year).

I'm still trying to find the answers myself but am posting this in the hope that some veteran may be able to give me the down low.

1. If I were to buy the council house I live in outright, what would be the additional costs other than the price of the house?

2. If I bought it 50/50 with my mother, could she transfer her half to my brother when she feels she no longer needs it (after the 5 years is up)? Would this carry any additional costs or legal complications?

3. Finally, to those of you who own the house you live in, could you estimate how much the house has cost to maintain - is it minimal compared to rent costs?
(I pay about 320p/m on a 3 bedroom semi detached in a low rent part of the country).

1) SDLT, solicitors fees, survey, etc, the same as if you were buying any other property.

2) Your mother could DIY the transfer or pay a solicitor to do it. If the property is not your brother's main residence the transfer could have CGT implications for him further down the line. Should your mother require care in her later years she could fall foul of deprivation of capital.

3) How long is a piece of string?

Hoploz

1. The main cost would be stamp duty. Check whether it would be payable on this house. Then legal fees. Call a solicitor for a quote. Some charge according to value of the property, others have flat fees and publish them on their websites.

2. How would she 'no longer need it?'

3. No idea. It'll vary according to the condition of the house, what standards you have and the cost of labour in your area

Guerillatoker

Thanks for the replies guys.

In terms of fees, this is what I understand so far.

Stamp Duty: Not applicable to this purchase.
Solicitor Fees: Got a quote for this now, didn't realise it would just be a matter of consulting comparison websites.
Surveying Fees: The council survey the house to price it up, it seemed reasonable enough last time. I don't think I will need one, as the house would need to be missing a roof for it to invalidate the significant RTB discount. Is this naive?

All in all these costs are fairly minimal (£1000-£1500), but I see so many warnings about the extra costs of buying a home that I can't kick the feeling that I am missing something.

Point taken about maintenance - mainly just talking about emergency maintenance, plumbing etc - but I suppose its still not easy to put a figure to that.

Guerillatoker

Hoploz wrote: »

2. How would she 'no longer need it?'

Well, basically, my mother is the long term council tenant but she would not be able to afford the house. I live in the house so am able to buy it with my mother, who me and my brother already support financially (happy to do it, she's our ma).

So the plan is looking like me and my brother buy the house with his share being my mothers. We will work out ongoing costs to make it fair between us with him not living in the house.

The chances are she will no longer need it when she passes on, so it could just be a matter of leaving it to him in her will? She would be happy to transfer it sooner, if it would not be at great expense.

hazyjo

So you plan on living with you mother forever?! Alone with no future partner?


Does your brother live there too? Not sure how he would be eligible otherwise to buy it. Would he be giving a cash gift to your mother to buy it with you?


I presume you are a named tenant.

seashore22

Why is it always the children coming on here to ask for advice and never the parent/parents?

Op, your mum isn't that old is she, so why mention her death? If you were a student fairly recently (assuming that you were normal student age) then she will need a roof over her head for some years to come. Having you buy her house or gifting the house to others is a really bad idea for her.

Perhaps encourage her to start her own thread to get advice.

Marvel1

Guerillatoker wrote: »

So the plan is looking like me and my brother buy the house with his share being my mothers. We will work out ongoing costs to make it fair between us with him not living in the house.

I predict this going wrong in the future.

What happens if he needs his share for something?

Guerillatoker

hazyjo wrote: »

So you plan on living with you mother forever?! Alone with no future partner?


Does your brother live there too? Not sure how he would be eligible otherwise to buy it. Would he be giving a cash gift to your mother to buy it with you?


I presume you are a named tenant.

No, but I can always move out. My mum needs a place to live regardless, so its no bother if I do. The discount is more than 50% of the house's value so the extra costs renting / mortgaging my own place will be more than offset.

Not sure about how to transfer the money tbh, thats the next thing I have to work out - I was assuming a cash gift, yes.

Been a named tenant for a couple years now and am eligible (Got accepted for RTB last time before deciding not to mortgage).

seashore22 wrote: »

Why is it always the children coming on here to ask for advice and never the parent/parents?

Op, your mum isn't that old is she, so why mention her death? If you were a student fairly recently (assuming that you were normal student age) then she will need a roof over her head for some years to come. Having you buy her house or gifting the house to others is a really bad idea for her.

Perhaps encourage her to start her own thread to get advice.

She's not far off retirement, didn't really want to mention her death but the question was asked (also, an abrupt loss of my father couple years ago has left me quite aware of all of our fragile mortality). I really don't mind supporting her. She supported me for 18 years.

cjdavies wrote: »

I predict this going wrong in the future.

What happens if he needs his share for something?

Well, that is certainly a risk but he will not be purchasing this with his life savings.

In that situation I suppose we would have to sell, which would be for substantial profit if it is not in the next couple of years.

Money_maker

So how long have you been living with her? What if she doesn't die for another 25-30 years? Will you want live with a wife, family and mother all together? What if you marry and split up? Wife entitled to some of house. From previous postings I assume you will be getting a mortgage not buying outright? More holes than a colander.

Guerillatoker

Money_maker wrote: »

So how long have you been living with her? What if she doesn't die for another 25-30 years? Will you want live with a wife, family and mother all together? What if you marry and split up? Wife entitled to some of house. From previous postings I assume you will be getting a mortgage not buying outright? More holes than a colander.

"No, but I can always move out. My mum needs a place to live regardless, so its no bother if I do. The discount is more than 50% of the house's value so the extra costs renting / mortgaging my own place will be more than offset." - Just quoted from my previous post to save retyping it.

As a single man, I am certainly not about to make financial decisions based on my hypothetical divorce to my hypothetical wife I haven't married yet.

Previous posts are a few years old now; I would hope anyone on this site would increase their financial position in the years following their registration! (Otherwise, whats the point?). I'm buying outright.