Right to Buy

MalMonroe

Hi, I am considering applying to buy my council property and was just wondering if anyone has actually done this and how difficult or easy they found it.

There seem to be lots of things to consider - even things like having pay separate water bills (these are presently included in the rent). I was thinking that I'd be much better off buying because I'm entitled to the maximum discount but now I'm not so sure. I don't know anyone else who has taken the plunge so would just like a bit of assurance. Or otherwise. If possible. Many thanks for reading.

FtbDreaming

I did. Mine was right to acquire but the same thing just less discount. 

I have been able to do things to the house that I couldn’t before when I was renting eg new kitchen bathroom and driveway. 

Negatives are you lose all maintenance services from when you put in the application. If they have done any upgrades in the last 3/ 5 years the costs can be deducted from your discount. 

The legal side of buying the house can cost a couple of grand plus broker fees and you’ll still need a small cash deposit for the mortgage. 

Then all bills will be your responsibility, handymen. Gas engineers, electricians etc will all need paying. You’ll need various insurance you probably never had such as life, buildings and contents. And if you have ever had to fall back on housing benefit you won’t have that option anymore if you’re struggling to pay the mortgage it’s on your head. 

HampshireH

House or flat?

user1977

FtbDreaming said:

You’ll need various insurance you probably never had such as life, buildings and contents. 

I doubt the OP will "need" life insurance.

macman

You are already paying for the water bills, they're just part of your rent.
Many water co's are enforcing metering anyway, so even if you continue to rent, it'll be billed separately at some point.
As long as you can afford the ongoing maintenance, and any service charge if leasehold, and have no ideological qualms about the private sale of social housing, then it's a no-brainer given the huge level of discount you qualify for.

Norman_Castle

MalMonroe said:

There seem to be lots of things to consider - even things like having pay separate water bills (these are presently included in the rent).

Water bill could be added to a service charge if they cannot be separated.

Work out the cost of buying vs renting over 5,10,20? years. There will be maintenance costs and possibly high major works costs but that depends on the type of property.

pinecone

I am currently going through the right to buy process, my local council is beyond Terran’s has made errors and caused delays and made the whole thing stressful, but I don’t regret it as the discount means I can actually afford the house as wouldn’t be able to otherwise.

I used a mortgage broker who gets most of their fee from commissions and I will only need to pay about £150 once all sorted. I could have used my discount as the full deposit, however was able to get a better mortgage deal if I added an extra 5k to the deposit do doing that.

My mortgage payments won’t be much more than my current rent and I know there’s the added insurance/maintenance etc to account for (I would already deal with most maintenance myself anyway) but with the house prices rising, it will be well worth it in the end.

I also pay my water rates with my rent, and need to figure out how to get that put into my direct name, many people have suggested I get a meter as will save money, my water rates are currently at about £400 when paid with the rent and that has surprised people as they think it’s high (never paid a water bill direct so I never thought about it before)

MalMonroe

user1977 said:

FtbDreaming said:

You’ll need various insurance you probably never had such as life, buildings and contents. 

I doubt the OP will "need" life insurance.

Thank you, I do have life insurance though. Also know I'll need buildings insurance as well as contents. 

MalMonroe

macman said:

You are already paying for the water bills, they're just part of your rent.
Many water co's are enforcing metering anyway, so even if you continue to rent, it'll be billed separately at some point.
As long as you can afford the ongoing maintenance, and any service charge if leasehold, and have no ideological qualms about the private sale of social housing, then it's a no-brainer given the huge level of discount you qualify for.

Yes, thank you I know I'm paying water bills in my rent, as I said in my OP. 

We won't be having a water meter. 

I do get your point about the 'ideological qualms of private sale of social housing' and was expecting the morals or otherwise of buying council properties to be mentioned. It is something I have thought hard and long about. But this is a way for me not only to get back onto the property ladder but also to leave somewhere for my daughter (who is disabled and relies heavily on me - her Dad lives overseas) to live without having to worry about rent or mortgage. It's very easy to judge other people and their motives but I was left in a position of having to move into council accommodation when my marriage failed and I was left a single parent. Life was a big struggle for many years. And to date, I've spent circa £80k on rent and have the opportunity now to buy from the council. They will get the money from the sale to plough back into building more homes, which they're actually already doing where we live.

Even if it is considered a socially selfish move, it's with the unselfish intention of securing my daughter's future when I'm no longer here.

MalMonroe

pinecone said:

I am currently going through the right to buy process, my local council is beyond Terran’s has made errors and caused delays and made the whole thing stressful, but I don’t regret it as the discount means I can actually afford the house as wouldn’t be able to otherwise.

I used a mortgage broker who gets most of their fee from commissions and I will only need to pay about £150 once all sorted. I could have used my discount as the full deposit, however was able to get a better mortgage deal if I added an extra 5k to the deposit do doing that.

My mortgage payments won’t be much more than my current rent and I know there’s the added insurance/maintenance etc to account for (I would already deal with most maintenance myself anyway) but with the house prices rising, it will be well worth it in the end.

I also pay my water rates with my rent, and need to figure out how to get that put into my direct name, many people have suggested I get a meter as will save money, my water rates are currently at about £400 when paid with the rent and that has surprised people as they think it’s high (never paid a water bill direct so I never thought about it before)

Hi, many thanks that is really helpful and has given me a few things to consider.

Our water bill is higher than yours at £520. Think I might query that! Our rent statements give a breakdown of charges so it's easy to work out. 

Thanks again, just the info I was hoping for.   

MalMonroe

HampshireH said:

House or flat?

Hi, thanks for responding. It doesn't really matter because I have read all the council's information and advice about the differences between house and flat purchase, leasehold or freehold, etc. - and have also checked with the council about my property and have received positive news in the first instance.

I just really wanted to get an idea, from someone who has actually done it or who is going through it at the moment, about hidden costs and fees or any niggles or worries. Whether to consult a mortgage advisor or not, things like that. 

Responses I've received so far have been very helpful and have given me food for thought.