House buying options advice

MikeyBeLike

So to give a little background, i'm a 25 year old M living near Old Street, London (central location) in a 2 bedroom council flat with my mum, we've been here since I was around 1 (24~ years). My mum's recently retired and doesn't work as often, so I pay the majority of our rent.

But i'm growing older now and because I work in IT, i've been fortunate enough to earn an above average salary for people in my age group, which means i've had the opportunity to save enough for a deposit on an average property in London.

So my dilemma:
1) Being a tenant of this council flat for 24~ years means i'm eligible to buy my council flat via the "right to buy" scheme with about a £100k discount of the property's value. Which would mean the value of my flat would go from around £300k - £350k -> £200k - £250k, but it would also mean I would still be living at home with my mother.

2) My other option is to go through the government's "help to buy" scheme and place a 5-10% deposit on a new build 2 bedroom apartment, they're around £400k in London, or around £300k just outside. Which would afford me the luxury of being more independent in my life, but it would also cost me a lot of money in the long run.

I'm sure you can see the dilemma here being that if I decided to move out and purchase a new build, it would also mean that I can't support my mums bills the way I have been doing so, but it could also mean i'm stuck in this property past my mid 20's, which is something I wouldn't want to imagine.

I'm just looking for opinions here and what others would do in my situation?

pmlindyloo

MikeyBeLike wrote: »

So to give a little background, i'm a 25 year old M living near Old Street, London (central location) in a 2 bedroom council flat with my mum, we've been here since I was around 1 (24~ years). My mum's recently retired and doesn't work as often, so I pay the majority of our rent.

But i'm growing older now and because I work in IT, i've been fortunate enough to earn an above average salary for people in my age group, which means i've had the opportunity to save enough for a deposit on an average property in London.

So my dilemma:
1) Being a tenant of this council flat for 24~ years means i'm eligible to buy my council flat via the "right to buy" scheme with about a £100k discount of the property's value. Which would mean the value of my flat would go from around £300k - £350k -> £200k - £250k, but it would also mean I would still be living at home with my mother.

2) My other option is to go through the government's "help to buy" scheme and place a 5-10% deposit on a new build 2 bedroom apartment, they're around £400k in London, or around £300k just outside. Which would afford me the luxury of being more independent in my life, but it would also cost me a lot of money in the long run.

I'm sure you can see the dilemma here being that if I decided to move out and purchase a new build, it would also mean that I can't support my mums bills the way I have been doing so, but it could also mean i'm stuck in this property past my mid 20's, which is something I wouldn't want to imagine.

I'm just looking for opinions here and what others would do in my situation?

I notice that you say you are a tenant - does that mean that you are a joint tenant with your mum?

It might be worth having a read of this article as it does cover some of the questions that you might have.

https://righttobuy.gov.uk/wp-content/uploads/2015/01/Your-Right-to-Buy-Your-Home-A-Guide-April-2017.pdf

If you do have the right to buy then I think the questions to ask yourself are:

Is it in an area which would mean that you can buy and then sell later? If it is surrounded by other council flats it MAY be difficult to sell. Council flats can be rather depressing from the outside (just saying....) If you did sell later then what would happen to your mum?

Do you want to live in that flat/area for the rest of your life?

Do you want to live with your mum for the next few years?

Can you manage the costs of buying your own place? Maintenance etc You could always get a lodger if you needed extra income but would this suit?

Your mother's financial circumstances are relevant but it is difficult to comment without knowing the full details. Perhaps she would be entitled to some benefits. Perhaps you could help her out a little if your finances allowed.

My own view is to buy your own place if you can afford it.

Cakeguts

How old is you mum? Would she be able to move into a council 1 bed retirement flat? Some of them are really nice.


There are big disadvantages in buying council flats. One of them being huge bills for repairs.



Can you find a non newbuild flat somewhere on a tube line to your work? Non newbuild being cheaper then newbuild.


If you mum can move to council retirement rented then you can both leave the council flat for another family who need it just as you did.

billy2shots

Cakeguts wrote: »

If you mum can move to council retirement rented then you can both leave the council flat for another family who need it just as you did.

That in itself is probably considered a grey area in our welfare system. A 25 year old in this position earning an 'above average' salary.

AdrianC

MikeyBeLike wrote: »

So my dilemma:
1) Being a tenant of this council flat for 24~ years means i'm eligible to buy my council flat via the "right to buy" scheme

Are you on the tenancy? If not, then - no - you can't.
If you are, then is your mother also on the tenancy? Would it need to be a joint purchase?

Do you WANT to buy that flat and live there for another five years, which you'd have to do if you don't want to repay that discount on later sale?

it would also mean that I can't support my mums bills the way I have been doing so

Your mother's accommodation and benefits would cease to take your income as a member of the household into account, so she may well receive more money from the state.

Caz3121

I wonder if the OP means they have been living there for over 24 years....they are only 25 so doubt they would have been on the tenancy as a baby.