Advice On Buying a Council House

dmg24

You have not answered my question ...

What is their 'income'?

How much is the house available to them for?

What do you expect the broker to do if you don't even know the value of the property?!

sho_me_da_money

Here is the advice i was offered:

Ah funnily enough this is something I can give you a bit of help with...

"First you need to speak to an Independent Financial Advisor. Make sure they are not a "tied agent" to a bank or building society who will then only research their own products. Have a look at this website for one in your area...

http://www.ifa-guide.co.uk/ then you need to do a bit of research to find out if any of them are any good.

As the "discount" belongs to your parents rather than you this obviously needs to be discussed with someone as to how you get a mortgage and who ultimately owns the house. An IFA will work on a commission basis (they will make some money from what product they sell you) or they will work on a fee basis but you will find that an initial meeting will be free so you can bend their ear on what you are looking for.
"

So is that the right way or not?

sho_me_da_money

Not sure how much the house is avaulable to them - theres been no surveyor or nothing.

I have done absolutely nothing. All i want to know is the steps i should take to get to the things like surbeys, advisors etc.

dmg24

You need to gather the relevant information before going to a broker. If not, the conversation will go as follows:

money's parents: 'Hello, I would like to get a mortgage'
Broker: 'For how much, and what is the value of the property?'
money's parents: 'Don't know'
Broker: 'OK, so what is your income?'
money's parents: 'Don't know'
Broker: 'So what do you expect me to do with this information?!?!?'

dmg24

Just ring the relevant department at the council. There is nothing you can do until you know the value of the property.

Do you not even have a vague idea?

sho_me_da_money

I reckon we could get it for about 70 - 80K with the discount applied.

dmg24

What do you think your parents get in terms of benefits (not including HB, as this would no longer be received)?

sniperpenguin

OK - first a word of warning.... the SECOND you ask for a valuation on a council property they suspend any planned maintenance / upgrades regardless of whether you buy or not.

Second, properties across the UK have had their levels of discount reduced (Wales is a MAX of 16K for example) - so you really need to get the numbers down on paper before you tackle it.

Finally, you are eligible to buy the house yourself, as long as you have been on the tenancy agreement for at least one year...

Hope this helps.

nicola1982_2

sho_me_da_money wrote: »

No idea.

It would be silly for them to miss out on an opportunity with this house. If they go for it under the right to buy scheme then they cannot sell/rent for min of 3 years.

Im hoping to sell it in 3 years anyways.

Where do they live in 3 years then? They won't get another council house if they had RTB. Plus they'll make money on the sale which will then be taken out of their HI allowance (money from house sale can be taken into account with benefits - I've seen it happen to my OH's ex). Be very careful that you profitting will not put them in a difficult position.

With regards to saying you're paying them rent, that would need to be declared to benefits office so going down that route could result in an investigation. Also if you are earning I'm not 100% sure but they might need to declare your income anyway - you're living rent free.

To me this sound a lot more complicated than simply buying a council house - there could be some serious implications with regards to benefit fraud if you start declaring certain things. I would investigate what you should and shouldn't do in terms of claiming before doing anything - you don't want to put your parents in a worse position.

bryanb

sho_me_da_money wrote: »

Hello there,

My parents have been living in a council property for a long time and they are entitled to a pretty good discount under the "right to buy" scheme.

Neither are working so they have suggested that i buy the place.

Now i am not entitled to this discount so the best way this can work, is if my parents buy it and i make the payments for the mortgage.

Given the info above, can someone guide me on the best way to carry this out please?

I remember someone telling me to contact the IFC or something first and getting a list of info from them.

I just need an idiots guide on how we can buy the house and make the best savings possilble.

Thank you in advance.

I did this while living with my parents, I was able to prove that it was my place of abode. (address on driving licence etc) On that basis the council included my name on the transaction, deeds etc. This has established my claim to the house when parents needed residential care. See a good solicitor!!