Right to buy

AdrianC · 27 February 2021 at 5:20PM

Gfitton said:

I think my son is just classing this as a future investment without considering all the things/issues what will come along with it.

Yep, that's how it normally works...

Right now - you have secure tenure. The boiler goes bang or the roof leaks, you phone the council, they fix it for free.

After this - you have a £50k+ asset! Congratulations. Oh, wait. That's taken into account for means-tested benefits, and if you need residential care. The boiler goes bang or the roof leaks? Your problem.

If it's a flat, then the council can bill you for work to the block. If it's a house, and they refurbish your neighbours, they simply won't do it to yours.

If he's 26, can he even get a £45k loan? Unsecured, because he won't be owner of the property... What interest will he be paying?

[Deleted User] · 27 February 2021 at 5:23PM

With the repairs it depends, according to the right to buy site, if the property is leasehold you would be responsible for repair costs in communal areas.

https://righttobuy.gov.uk/can-i-afford-it/buying-a-leasehold-property/

Probably best to get advice from them also.

GaleSF63 · 27 February 2021 at 6:42PM

What does your son think will be the advantage to YOU if you buy it?

csgohan4 · 27 February 2021 at 6:58PM

GaleSF63 said:

What does your son think will be the advantage to YOU if you buy it?

Sadly you will lose your secured tenancy, so what is in it for you? I can't see it from here, just too much me,myself, I from your Son seeing the £££ only

Gfitton · 27 February 2021 at 7:30PM

Well I am not planning on staying on benefits, as soon as I am healthy enough to work I will be so really he would then be stopping me from paying rent so I don't think its a ''me,myself & I'' situation. I think he aims to benefit us both in the long run.

Also it is a terraced house not a flat, I have recently (last 2years) had a new boiler and kitchen. We understand we would have to pay for any repairs.

HampshireH · 27 February 2021 at 7:50PM

You've been given a fair list of hurdles. The main ones being your son's eligibility first to secure such a loan and second about his ISA if living abroad.

Maybe if you can advise then people could understand better how he intends to execute his plan.

[Deleted User] · 27 February 2021 at 11:34PM

Gfitton said:

From reading the comments above and doing some research online this does seem like a minefield.

I think my son is just classing this as a future investment without considering all the things/issues what will come along with it. To be honest I don't know much about this kind of thing myself which is why I have posted on here to get your opinions.

I think we will need to seek further professional advice on this before we make a decision.

How would you go about this if you was doing it yourself going off the information I have provided? or any questions I can answer to make my circumstances more clear?

Thanks

If it were me I wouldn’t do it at all at the moment. If when I was fit and well, and back in work I wanted to explore exercising my right to buy I’d do it myself without my son and using a conventional mortgage.

Your son is getting way ahead of himself and is seeing pound signs in his eyes. If by some miracle he could get a £45k personal loan then that is likely to impede his own house buying plans by reducing the amount he’s allowed to borrow further down the line. Furthermore, who cares if YOUR, not his, property has increased in value 10 years from now? It will be YOUR equity, not his, and you can’t crystallise it into cash until you sell it which you probably won’t on the basis you need somewhere to live.