Right to Buy

danny_cc

Hi all, I’m hoping that some of you might be able to help me out with a bit of a stalemate. I currently live in a council property that my mother has been renting from the local authority for 18 years this year and I have been looking into enquiring about the Right to Buy scheme.

Very rough estimates online estimate the property to be to be worth £72,800 on the low side and £104,700 at a higher estimation. Meaning that we would be able to get the property for somewhere between £37,856 and £54,444, which, in the grand scheme of house prices is next to nothing for a 3 bedroom property in a fairly quiet area. The current rental payment is around £400pcm and my employer currently has a staff mortgage rate that would be a tracker rate at the Bank of England base rate putting the monthly mortgage payment over 17 years somewhere between £187-£269pcm for as long as the BoE base rate is so low, even if the rate was to go up by 3% (which I’m sure we’d all agree is very unlikely and in realms of fantasy for savers of today), the monthly payment would still be £60pcm less than the current renal payment. Unfortunately, time is not my friend as that staff mortgage rate is due to be replaced with another offer some time this year (date yet to be confirmed) which I imagine is very unlikely to be as good as it currently is. 

My predicament is that as my mother is currently and always has been the one named on the tenancy, she needs to give permission to even enquire about it, and she keeps saying no! I’m not entirely sure why she is saying no as I never get much of a response before the conversation is cut off but I do keep getting things like, what if something goes wrong with the house, what if the boiler breaks, I won’t be able to get a mortgage, the bank could repossess the house, it’s a lot of debt etc. All of which, I have responded with things such as building insurance, boiler on finance or save using the monthly difference, you don’t know until you enquire about it, so could the council, the bank use repossession as a very last resort and an indefinite rental payment is a much bigger ‘debt’, but this is the point in which the conversation gets cut off. 

If I could just do it all myself, I’d have done it months ago but I can’t because she is named on the tenancy, not me. Is there anything that anyone can suggest that I may be able to say to even simply get permission to put a RTB request in and find out a little more, even better if anyone can convince her to go ahead completely? I’m all out of ideas, I genuinely can’t see a downside myself - a mortgage has an end date, there’s a massive monthly saving, there’s 3 incomes coming into the house as it is at around £60k total so very unlikely that the payments would ever not be made, we would have the ability and freedom to do any sort of improvements (finance permitting) and a huge potential profit after 5 years if she does want to move out (unlikely in my opinion but it’s another one of her counter arguments). I do just get the impression, as I’m sure a lot of you do, that she just doesn’t want to know and I am, of course, also coming at this from a selfish position in relation to some form of inheritance, lower lodge payments, and it’s my best chance to get on the housing ladder any time soon.

If I am missing a huge downside to this, I’d be extremely grateful if anyone could point this out but I’d also be hugely thankful if anyone can think of anything to help me move this forward as it’s time-critical for the BoE tracker rate.

Thanks all

princeofpounds

One big downside is that you can't do this. 

YOU can't raise a mortgage on a property your MOTHER alone has right to buy.

Clearly she isn't very interested in doing this either. It's a shame that you don't have open enough communication to discuss why. I agree with you that she would likely become financially better off if she were to RTB, but giving up a highly secure council tenancy is not always a sensible choice, particularly if someone may become entirely dependent on state benefits and care later on in life.

Yes, you are coming at this from a selfish position.

Chandler85

She is going to give up a secured home that she doesn't need to worry about the big maintenance on ever, for essentially £150 a month.  Much less once you take into account your insurance, money set aside for maintenance etc.

Maybe she just doesn't want to own a home and is happy.  She might see her home as her home, and not "huge potential profit", she might even believe that council homes should always remain as that for the next person to use after she no longer needs it, not some form of inheritance.

It's her home, let her keep it how she wants it. Why would she mortgage it in your name (assuming the staff tracker requires that).

If you want to buy a home, then you can go and buy one with your mortgage deal.

Caz3121

Home ownership is not for everyone. She has a secure tenancy and probably hopes that one day you will build your own life and not be living at home with her for the next 20 years. Maybe you and a future partner will want a place together and this current plan could effect that happening.
Time for a plan B to get on the property ladder I think.

Norman_Castle

danny_cc said:

 The current rental payment is around £400pcm and my employer currently has a staff mortgage rate that would be a tracker rate at the Bank of England base rate putting the monthly mortgage payment over 17 years somewhere between £187-£269pcm for as long as the BoE base rate is so low, even if the rate was to go up by 3% (which I’m sure we’d all agree is very unlikely and in realms of fantasy for savers of today), the monthly payment would still be £60pcm less than the current renal payment.

Its unlikely to rise over the next few years but beyond that no one knows, 17 years is a long time to predict ahead.

"If I am missing a huge downside to this, I’d be extremely grateful if anyone could point this out"

Your mother has a secure home, you're expecting her to risk this to benefit you. Its her choice.

AdrianC

danny_cc said:

I currently live in a council property that my mother has been renting from the local authority for 18 years this year and I have been looking into enquiring about the Right to Buy scheme.

...

My predicament is that as my mother is currently and always has been the one named on the tenancy, she needs to give permission to even enquire about it, and she keeps saying no!

That's the end of it.
You cannot buy the property, only she can.
She does not want to buy the property.

my employer currently has a staff mortgage rate

Is that rate open to the parents of staff members? If not, it's academic.

there’s 3 incomes coming into the house as it is at around £60k total

So an average of £20k/head. Minimum wage is £18k full-time.

I am, of course, also coming at this from a selfish position in relation to some form of inheritance

Our condolences. When did she die?
Let me be a bit less flippant... An inheritance is the assets somebody has left AFTER they've died. No more than that. Perhaps she'll need residential care before she dies...?

If you want to own your own home, then perhaps this is simply the right time for you to move out from your mother's home, and stand on your own two feet?

wilfred30

So, basically, you're trying to bully your mother into doing something she doesn't want to do simply to feather your own nest financially.

Luckily, it would appear that she is currently standing up to you.  Long may that continue!

davidmcn

AdrianC said:

danny_cc said:

I currently live in a council property that my mother has been renting from the local authority for 18 years this year and I have been looking into enquiring about the Right to Buy scheme.

...

My predicament is that as my mother is currently and always has been the one named on the tenancy, she needs to give permission to even enquire about it, and she keeps saying no!

If you want to own your own home, then perhaps this is simply the right time for you to move out from your mother's home, and stand on your own two feet?

In fact, how much longer do you actually want to live with your mum? Having a joint mortgage with her makes you substantially less mobile.

strawb_shortcake

For this to happen you would need to be on the tenancy agreement for at least 12 months, the RTB program can easily take 9 months, so the current interest rate you could get today is completely irrelevant.

Our neighbours are just going through the process with their Son, they've had to draw up a legal document to say he'll never evict his parents, how this would work in the event the relationship sours I have no idea. 

The cost of home ownership should not be taken lightly, we did the RTB and as a tenant you have no appreciation of just how much things can cost.

NinjaTune

Your Mum is (rightly) looking at her own long-term commitments, not yours. 

What if she wants to downsize from a 3 bed when she is older?  What if she needed to move to an extra care property?  Does she really want to have you and the other person (your partner?) living with her for the rest of her life?  Do you want to end up as her carer because she can't transfer her tenancy to one with additional care in place?

If you want to get on the property ladder then you'll need to start looking for alternative accommodation because your Mum seems to be quite clear she wants to retain her own tenancy.

comeandgo

Leave your mum alone, she is not your cash cow so you can get a cheap house.