Selling Right-to-Buy house without penalty

HannahHebden

Hoping someone may be able to enlighten me on the intricacies of selling my right-to-buy property.

I purchased my Midlands council property through Right-to-Buy 2½ years ago, but it has sat empty since then as I needed to move up North soon afterwards to care for my disabled elderly Father.  I just managed to cover the mortgage payments as I was living free of charge with my Dad.  My elder adult son (who has significant MH illness) moved close to us when Lockdown started as he lost all of his support networks. 

My Dad died recently and my son is now well settled up North and is reluctant to move back to the Midlands.  As his primary carer, I would prefer to stay here too, but cannot afford to stay unless I can sell or release equity from my council house.

I understand the ‘repayment of discount’ rules if I sell early, but have been trying to find out any specific information about ‘exceptional circumstances’ which could exempt me from this penalty.  I’m sure I read somewhere once that (to fulfil some human rights obligation I think) if there are exceptional circumstances that prevent me from staying in my home (e.g. due to my care responsibilities up North) I can sell my home without the financial pay-back penalty.  Does anyone have experience/knowledge of this?

Additionally, my younger son will be returning to the UK next summer after working abroad for the last few years.  We were looking into the possibility of him purchasing the property to help me out, which I had thought would avoid the pay-back penalty, but the government guidance refers only to ‘transfer of ownership to a family member’ as a way of avoiding the penalty.  Does anyone know what this term means?  Do I have to just give him the property or can he pay me for it?  And could he own it jointly with his long-term partner?

Thanks in anticipation of any information anyone has.

Hannah.

seven-day-weekend

Why don't you rent it out until you are no longer under the terms of the penalty (if, indeed, they apply to you).  

However, bear in mind that rules for landlords are stringent, proceeds are taxable  and you may not fancy the hassle.

Caz3121

there is some guidance here https://www.gov.uk/government/publications/right-to-buy-use-of-discretionary-powers-on-repayment-of-discount
Also worth checking whether you are required to give the council first refusal in purchasing the home if you are planning to sell (some councils this applies for the first 10 years)

HannahHebden

Wow that's great thanks. They didn't signpost that from the gov.uk/RTB site!  Got to be worth a try. But still I'm grateful I had the RTB opportunity.  At least I should still manage to dodge negative equity hopefully, if I do get stung. Onwards and upwards! Too many people don't even have houses to buy, or even rent these days, so I should probably just suck it up!
Yes the council have now thrown a new bombshell in the mix to say they may want to repurchase.  I didn't want to throw too much info into the long-winded initial post, but any guidance about this would be much appreciated!  Does the Council trump a family member for purchase? So many complications. Hey ho.  Do you know if government publications guidance has any clout legally? I'm guessing it's not law?  But could maybe be used to strengthen an Equalities or Housing case? Getting sidetracked now - I'll certainly peruse that little library of treasures on gov.uk sometime soon, anyway!  Thanks again.  Hannah.

Caz3121

the key point will be section 9. 

9. It is envisaged that former landlords will only exercise their discretion in cases where the former tenant cannot afford to repay part or all of their discount.

If there is enough equity to repay the discount % due then I doubt they would agree to you keeping it all, different if house price crash etc when not enough left to pay mortgage and discount

HannahHebden

Renting out isn't possible until I can swap to a BTL mortgage, which requires numerous 'tasks' to be done in the house (yes 'stringent' is a good adjective!) and I need a stable income, which I am frantically working on. I do now have council permission (required) to sub-let, so this is a viable option  Lodger permission granted by council and pending with bank.  All options are on the table!  Thanks for replying.  Hannah.

onylon

Could your younger son buy a property up north for you to live in while he lives in your property?

HannahHebden

I like that idea.  Hadn't come up with that.  I'll work on it. Thanks. H.