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"dad Buying Council House" - From Mse

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http://forums.moneysavingexpert.com/showthread.html?t=576665

Quote:

After many years my dad has finally decided to buy his council house in Scotland. There's a couple of questions I would like to ask on his behalf if I may?
He is registered disabled and has been receiving income support for many years. he has been told that if he decides to purchase his house then the DSS will pay the interest on his mortgage, is this correct?
Will he find difficulty in finding a mortgage if he is on benefits?
Can anyone recommend a good conveyancing firm that would deal with the sale of a council house in Scotland?
It state's on my dad's letter from the council that they will offer him a loan to purchase his house if he can supply proof from two building societies that he has been refused a mortgage. What are the general terms from the council? i.e rates, duration etc.
Thank you in advance for any help or advice

Astonishing!

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http://forums.moneysavingexpert.com/showthread.html?t=576665

Quote:

After many years my dad has finally decided to buy his council house in Scotland. There's a couple of questions I would like to ask on his behalf if I may?
He is registered disabled and has been receiving income support for many years. he has been told that if he decides to purchase his house then the DSS will pay the interest on his mortgage, is this correct?
Will he find difficulty in finding a mortgage if he is on benefits?
Can anyone recommend a good conveyancing firm that would deal with the sale of a council house in Scotland?
It state's on my dad's letter from the council that they will offer him a loan to purchase his house if he can supply proof from two building societies that he has been refused a mortgage. What are the general terms from the council? i.e rates, duration etc.
Thank you in advance for any help or advice

Astonishing!

LoL :lol::lol::lol::D not only are they wanting to buy o benefits = no risk investment, but the audacity to ask for a recommendation for a "GOOD" conveyancing firm..........choke...splutter.....cough...... foxtons perchance could offer a complete package my dear property developer.

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Sounds like a very imprudent Scottish local authority to me. If two building societies aren't willing to lend this gentleman funds to buy his council house then why should the taxpayer? More money than sense the Scottish public sector!

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if hes your dad and you acting on his behalf on this forum, im pressuming hes in his 50's ?

if hes in his 50s he might get a 25 year mortgage but he could rent for 25 years for much less and with no repairs.

why does he WANT to buy the house. its too late in the day for that.

plus possible 'sleeper awooga' etc.

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When he dies god forbid then the house he has lived in for over forty years goes back to the council. Only for some immigrant to bypass the queue and get the house!

He wants to leave something for his children.

Found this comment very very sad. The house isn't going 'back to the council' - they own it in the first place!

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Um... isn't the point of "having something to pass onto your children" that it's something you've worked for and earned? Since when do the taxpayers owe this guy's children an inheritance?

Sickening

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Aren't council tenant buyers' discounts much lower than what they used to be.When you rent from the council the place is roughly free ,the rent just about covers the maintenance.So this numptie is wanting to buy something he has virtual free use of anyway.Only stellar capital growth makes it viable.The fact that he gets it free for life anyway with a full rent rebate,but now he wants to increase his out-goings with service charges ,maintenance etc. means he deserves to get into financial trouble.

Edited by crashmonitor

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On so,so many levels this is a non starter.Hopefully it will prove to be impossible.

Strangely, the son isn't trying to stop his father from doing this....maybe he'd be happy to inherit 5 or 10 thousand,

even if it meant that his dear old Dad had to suffer a desperately poor existance for 20 or 30 years.

I wonder whose idea it really is..?

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Found this comment very very sad. The house isn't going 'back to the council' - they own it in the first place!

In any case, he would have the right to pass the tenancy on to his children anyway.

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But don't these folks get huge discounts? If the discount is big enough and the council will give him a mortgage that they will then pay themselves, then why not?

At least his boy is trying to get information. Unfortunately, the information he's after is not the information he needs. He needs someone to calculate a set of alternate realities out into the future; dead easy for peeps here but obviously not for him.

I suspect his son is the one forcing his dad's hand (after an inheritance?). But without the actual details it's not easy to see if it's a good deal or a bad deal (for this person).

Does anyone know what happens to these people if they default on a mortgage to the council arranged by the council and paid by the council? Would they chuck him out and rehouse him somewhere else then offer another loan if he is refused another loan by them?

It is beyond insanity that a council will lend to people on social security. Selling council houses at knock-down rates should be entirely banned (maybe 5-10% off a survey price at most).

In fact, councils should be banned.

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Council tenants in Scotland (not sure about England) get huge discounts on the price of their house (well the baby boomer generation do) depending on how long they have been tenants so I'd imagine the guy is looking at all that "equity". A typical 3 bedroom terraced in my hometown goes for around £100K or so and I'd imagine if they guys dad has been a council tenant all his life he would get the house for a discount in the region of 50-60%.

http://www.scotland.gov.uk/Resource/Doc/46951/0030452.pdf

Edited by Springveldt

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I thought the max discount was 27k is it different in Scotland?

Not sure about Scotland but in England and Wales it varies from area to area and can also differ between councils. My home comes under Maidstone council and the max discount is 38k A few miles away in Tonbridge and Malling the max is 16k.

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In any case, he would have the right to pass the tenancy on to his children anyway.

They would have to be resident for at least a year though.

Edited by council dweller

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"fecking liberties "....... seriously though, dont let your father become a slave to debt by getting a mortgage paid for by the tax payer.

I thought the answer was stomping you in the face, surely your dad has earned the right to release the equity he hasn't built up in the house over the last ten years he hasn't paid for in rent.

.............................................." fecking liberties "

Edited by northern numpty

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