Complicated situation - right to buy

DomSully40

Hi all, I’m hoping someone can help us with our current situation. 

8 years ago my parents asked if I would be interested in buying the family council house as they’re entitled to a discount, (we was renting a flat at the time) but have no means of buying (70 years of age) and was worried the council would move them somewhere far from here as this house is 4 bedroom. 

We agreed that we’d move in together and buy the house, and that me and my partner would pay the mortgage and all the bills. Mortgage finished 2 years ago. My mother had to be on the mortgage to get the discount but we agreed we would pay it all and it would he mine and my partners house in equal shares, the 3 of us did a declaration of trust with a solicitor for that.

We’ve worked extremely hard over these years, also now have a 6 year old child. We all get on fine but have agreed we’d prefer our own space now.

We are all on the same page and me and my partner want to buy my parents a smaller property like a ground floor maisonette (they’re happy to do this) then either sell this house and use towards a new house for me, partner and child or maybe even rent it out and use the income towards a new mortgage.

I’ve read there is some tension regarding right to buys and profiteering, this is not what we are doing and have been here nearly 9 years, it’s just time to move on with our lives.

The problem is we don’t know where to start, can we rent it out, does my mom need to come off the deeds? Would really appreciate any advice or insight.

Many thanks

Dom

dimbo61

I think under Right to Buy if you sell the property within 5 years you need to repay the RTB discount.
Your well over this time and you have all lived in the property as your main residence so if you now want to sell and buy 2 properties I don't see any problem.
However speak to a solicitor
If you keep your current home and rent it out while buying a new family home you WILL pay the extra 3% stamp duty.
Go back to the solicitors who did the deed of trust with regard to who gets what if you sell 

MalMonroe

Hi, I'm in the position of currently considering whether or not to buy my council property.

There's a lot of information on the government website about buying and also when you want to sell your home - see info in the following link -

https://www.gov.uk/right-to-buy-buying-your-council-home/selling-your-home

It states "If you sell your home within 10 years of buying it through Right to Buy, you must first offer it to either:

• your old landlord
• another social landlord in the area

The property should be sold at the full market price agreed between you and the landlord."

I wouldn't speak to a solicitor just yet, I'd go back and speak to the council, the same department who dealt with your application at the outset. They will be able to tell you exactly what should happen. (Unless they are like the council in my own home town, who are absolutely useless!)

Good luck 

DomSully40

dimbo61 said:

I think under Right to Buy if you sell the property within 5 years you need to repay the RTB discount.
Your well over this time and you have all lived in the property as your main residence so if you now want to sell and buy 2 properties I don't see any problem.
However speak to a solicitor
If you keep your current home and rent it out while buying a new family home you WILL pay the extra 3% stamp duty.
Go back to the solicitors who did the deed of trust with regard to who gets what if you sell 

Many thanks, unfortunately the solicitor is now permanently closed.

powerful_Rogue

DomSully40 said:

dimbo61 said:

I think under Right to Buy if you sell the property within 5 years you need to repay the RTB discount.
Your well over this time and you have all lived in the property as your main residence so if you now want to sell and buy 2 properties I don't see any problem.
However speak to a solicitor
If you keep your current home and rent it out while buying a new family home you WILL pay the extra 3% stamp duty.
Go back to the solicitors who did the deed of trust with regard to who gets what if you sell 

Many thanks, unfortunately the solicitor is now permanently closed.

Speak to another?

DomSully40

Can’t seem to reply to the messages here

DomSully40

I tried another solicitor but when I mentioned removing mom from the deeds, with her consent of course, they seemed to get all defensive, was bizarre. 

The declaration of trust states 50/50 me and my partner if sell the house so being mom being on the deed if we rent or converted to buy to let might cause her issues. 

The above was my understanding of the rules from the start but seen this on the registry, not sure exactly what it means

sheramber

Selling your right to buy house

https://www.gov.uk/right-to-buy-buying-your-council-home/selling-your-home

If you buy another property while still owning the right to buy house/s you will pay Stamp Duty Land tax in addition to  any ordinary stamp duty payable. This can be reclaimed if you sell within 3 years.

This would also apply  to any second home so  if you  sell then buy a house for your parents but it is in your name and one for yourselves ,  then you would pay the extra stamp duty on the one that is not your main residence.

If it is in your parents name it can be assessed to pay for care if they should need it in the future.

A lot to consider and get advice.