Right to Buy, Outright

seashore22

I'm not all that far off retirement either. Still anticipate needing my house for the foreseeable future.

Whatever you do decide to do, be aware that you will be buying this house at the expense of your mother's security. My own parents have always lived in council houses and are in their 80's now. I'm talking from direct experience here.

seashore22

Guerillatoker wrote: »

"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.

Perhaps you could share your experience of going from numerous debts to having enough savings to buy a house outright in 4 years. That's just the kind of thing that MSE applauds.

Guerillatoker

seashore22 wrote: »

I'm not all that far off retirement either. Still anticipate needing my house for the foreseeable future.

Whatever you do decide to do be aware that you will be buying this house at the expense of your mother's security. My own parents have always lived in council houses and are in their 80's now. I'm talking from direct experience here.

The point regarding security is fair, but neither me nor my brother would turf my mother out of her home but I suppose if we incur huge debts somehow we would be forced to sell.

Guerillatoker

seashore22 wrote: »

Perhaps you could share your experience of going from numerous debts to having enough savings to buy a house outright in 4 years. That's just the kind of thing that MSE applauds.

Ok.

Very poor kid, accumulated a few minor debts in College.
University, accumulated debts as all students do.
Job in a bank, paid most of my debts off.
Niche job in a large sector.
Become contractor in large sector using competencies attained in niche job.

I wish there was more to it but there isn't.

EDIT: This is an RTB purchase with more than 50% discount, which may help you to understand.

seashore22

Not just debts.

Not being able to afford repairs and maintenance.
Your mum wants to marry again or has a new partner.
Moving partners/children into her home.
You get divorced at some stage and her home is a marriage asset.

That's just a few.

Guerillatoker

seashore22 wrote: »

Not just debts.

Not being able to afford repairs and maintenance.
Your mum wants to marry again or has a new partner.
Moving partners/children into her home.
You get divorced at some stage and her home is a marriage asset.

That's just a few.

The only one that holds water is the repairs & maintenance - which is one of the things I was hoping people could help me gauge, as opposed to asking me to justify my change in circumstances (Which you don't seem to applaud after all, just mock).

I've already mentioned I would be happy to move out once I've purchased it. Seeing as me & my brother already decided to support my mum when my dad died I would be supporting her even if I moved out and didn't buy the house.

I know this is a foreign notion to many people but we're happy to support the woman who raised us to be in the position to afford this in the first place.

CocoLouie

Guerillatoker wrote: »

The point regarding security is fair, but neither me nor my brother would turf my mother out of her home but I suppose if we incur huge debts somehow we would be forced to sell.

So even with a possibility in the future they you would be forced to sell (even if it is a very small chance), you are willing to put your mother at risk of being homeless for your own gain? You do know that your mother wouldn't get rehoused by the council if that happens don't you?


Also if your mother needs care after signing her share of the house over to your brother then the house could still be used for fees since it is deprivation of assets.


Hopefully your mother gets some independent advice on the matter so she knows all of the risks as you can only think of £££

fairy_lights

Guerillatoker wrote: »

The point regarding security is fair, but neither me nor my brother would turf my mother out of her home but I suppose if we incur huge debts somehow we would be forced to sell.

A lot could happen in the next 30-odd years.
Indeed you may rack up huge debts and need to sell, or you and your brother may fall out, or your mother might remarry, or you might marry and be forced to sell the house in a divorce. You might not want to think about hypothetical worst case scenarios now but what will you do if any of the above situations do happen? Where will your mother end up?
She would be far more secure NOT buying, than buying and risking ending up losing her home in old age.

Trickytree2

You (and your brother) will also be liable for the 3% extra stamp duty when you move out and want to buy another home as well as CGT when you sell (assuming you move out).

seashore22

Guerillatoker wrote: »

The only one that holds water is the repairs & maintenance - which is one of the things I was hoping people could help me gauge, as opposed to asking me to justify my change in circumstances (Which you don't seem to applaud after all, just mock).

I've already mentioned I would be happy to move out once I've purchased it. Seeing as me & my brother already decided to support my mum when my dad died I would be supporting her even if I moved out and didn't buy the house.

I know this is a foreign notion to many people but we're happy to support the woman who raised us to be in the position to afford this in the first place.

That all sounds very noble, but it simply doesn't work like that. It's much more complicated and your plan actually puts your mum at more risk, not less. If you want to help her, and it sounds like you can afford it, do so without making her lose a valuable council tenancy. I help my parents, but that doesn't mean I have to own the roof over their heads to do that.

Don't suppose you'll listen though.