Help buying a council house

mikey546782

Asking for a friend who is not tech literate
He wants to buy his council house as they are threatening to terminate his tenancy
His mum died last year, he was her carer and managed to transfer the tenancy to his name but now they want the house back (not sure if they gave a reason or not)

Is there specific help to buy a council house?
He would need a buy-to-let mortgage as he doesn't qualify for a regular mortgage with low credit rating and low irregular income

He's planning to then rent out the other 2 bedrooms and live there

Bit of a dilemma as he'd have to register from another address to qualify for a buy to let mortgage, but needs to be registered as living in the house to qualify for the council occupier discount when buying it

Any ideas?
Thanks

strawb_shortcake

I don't think a buy to let mortgage would be appropriate, your friend would need to speak with a mortgage broker to understand the type of mortgage they will need, and also apply for the RTB via the council. This isn't a quick thing and could easily take 9-12 months assuming he has the right to buy. With a buy to let mortgage you'd also have a 25% deposit not that I think that would be approx or available under a RTB purchase.

I'd hazard a guess that the council would much prefer to home a family in a 3 bed property than your friend and two random mates.

elsien

I suggest you clarify exactly what is meant by “ they want the house back” given that  he now appears to have have a valid tenancy in his own name.

I would suggest exploring that in much more detail is going to be a lot more productive than trying to buy a house he can’t give afford even with a discount. And particularly trying to game the system with a buy to let for a house he will be living in. Which is only going to lead to a world of pain. 

theartfullodger

Has he read -carefully, twice - the tenancy to see if this an option or not? And the council's website?

Not all council tenancies permit this.

Which country (eg Wales, NI.....)? Don't think all have it still.

MEM62

mikey546782 said:

He wants to buy his council house as they are threatening to terminate his tenancy

For what reason?  

mikey546782 said:

Is there specific help to buy a council house?

You mean apart from the sizeable discount.

mikey546782 said:

He would need a buy-to-let mortgage as he doesn't qualify for a regular mortgage with low credit rating and low irregular income

If he is living there he needs a residential mortgage.  (You do not need a BTL mortgage to have lodgers)  If he does not qualify for that then it's a non-starter. 

I am not sure that this will go anywhere for your friend as he does not appear to be able to financially support the purchase.   

theartfullodger

Is the rent fully paid up, no arrears, please??

marcia_

 If they want to take back the tenancy i doubt they will be interested in discussing the right ti buy the property. 

 Why do they want it back? Non payment of rent? Anti social behaviour? Etc 

user1977

marcia_ said:

 Why do they want it back? Non payment of rent? Anti social behaviour? Etc 

Adapted for disabled use by mum and wanted for a new tenant?

gwynlas

If they have granted him the tenancy through succession it is extremely unlikely that they can take it back, it miight be that they want him to move to a smaller property as he is housed in a larger property than he needs, He would not be entitled to the right to buy discount that his mother would have qualified for as he was not the tenant,

tooldle

Many councils now have a clause in their contracts to ‘encourage’ downsizing to a more suitable property. Maybe such a clause was added (if not already present) when the tenancy transferred.

KxMx

Sounds like he was entitled to inherit the tenancy but not the property. Buying it will be a no go. 

The Council will assist in re housing him in a one bed place, preference within bidding/allocation will be given as he is downsizing.

Then a family can benefit from the 3 bed house, is your friend aware how many homeless families there are living in temporary accommodation, sometimes a single hotel room with no laundry or cooking facilities?