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Talk to me about RIght to Buy and HB

(21 Posts)
Picklepickle123 Wed 21-Feb-18 07:28:08

MIL has lived in her HA-owned property for 15 years+. Recently, she has requested to buy the property but the request has been refused because she hasn't been a tenant for 3years+? I'm not sure if this is because FIL passed away 18 months ago and the name on the tenancy will have changed.

If the request to buy is ever successful, does it have to MIL herself who buys the property i.e. takes out the mortgage? And am I right in thinking if she is successful, then her HB will be stopped and the mortgage will need to be paid from her earnings?

Feel like a complete fool but I have no idea!

MissBeehiving Wed 21-Feb-18 07:33:57

There is a qualifying period of 3 years for RTB for all tenants.

HB is only paid for rent, if your MiL buys the property, she won’t be renting, therefore won’t qualify.

A mortgage can be obtained but it will be dependent on how much she earns (presumably, not much if on HB), the amount of the loan required and her age.

GeorgieTheGorgeousGoat Wed 21-Feb-18 07:41:31

Are you asking if you (or someone else) can buy the HA house your mum is living in and can she continue to receive housing benefit? hmm

RTBAdmin Wed 21-Feb-18 07:47:08

Name change

How your mother pays for the house is up to her. A mortgage company may not want to lend to you as you have no interest in the house but its not unheard of.

HOWEVER. If someone claiming HB accepts an offer from us, they will be reported to benefit fraud.

RTBAdmin Wed 21-Feb-18 07:48:43

Sorry, was also answering a question you hadn't asked. Was speaking as if you asked about buying her house for her. Sorry.

desertmum Wed 21-Feb-18 07:57:15

I would be surprised if someone who is receiving HB can afford a mortgage and the additional costs of buying a house.

youngnomore Wed 21-Feb-18 07:57:29

I would call CAB. They can give you a lot more information specific to your mil circumstances.

Picklepickle123 Wed 21-Feb-18 08:09:07

Tbh, I think my BILs will want to buy the house for her and then get DH to give his 'fair share' too. We are significant better off than the other two, but I truly feel there are much better ways of spending that sort of money - considering we have our own very large mortgage! DH does try and help her out, he pays for her grocery shopping every so often etc, but I feel a bit uncomfortable committing so much money. Not sure if that comes accross as a bit mean.

Thanks for confirming that HB isn't awarded if she owns the house. She's unlikely to get a mortgage either.

Can the HA stop my BIL from buying the property if MIL is successful in a RTB application? He doesn't live in the property. I feel he's trying to start a huge argument confused

shartsi Wed 21-Feb-18 08:30:24

Why not just buy her a property on the open market?

Picklepickle123 Wed 21-Feb-18 10:03:23

MIL doesn't want to move, she's spent so long in the house, all her stuff his there, she knows the neighbours (tbf, they do look out for her) and it's located near a lot of amenities that she can walk to as she can't drive etc etc etc. Her list is endless.

I've always said that I wouldn't uproot her unless it was absolutely necessary. All her children live away from their home town so we've discussed previously having her move near one of us for company/grandkids etc but she really doesn't want to. Even when FIL passed, she said she would rather live on her own than move. I guess BIL is thinking owning the property will be better but I don't know why. Q

ExFury Wed 21-Feb-18 10:58:48

I guess BIL is thinking owning the property will be better but I don't know why.

Depending on his character he may be thinking of buying a house with a discount and then the profit that would come when you sell it after MIL dies.

If she wasn't named on the tenancy the whole time (if it was just in FIL's name) then he's likely to be sorely disappointed over the discount (if she even has the RTB).

Doctordonowt Wed 21-Feb-18 11:12:20

Is the reason that he is looking to make a profit at MiLs expense? If she does buy it with him, who will be responsible for all the repairs?. What happens if it needs a new roof, for example? Once she is a home owner she will not only lose her HB but she may be questioned about where the money came from to purchase. She may be asked if she has more savings than she has declared. Even if she has been honest these questions are distressing.

She needs to think about what happens, if the time comes when she is no longer able to live in her house. Would owning her home deny her the right to Sheltered Accommodation? If she needs to go into a care home the house will have to be sold to pay her fees and any profit he is anticipating will disappear.

FannyWisdom Wed 21-Feb-18 11:18:31

Housing benefit is for rent not mortgage.
BIL can't use RTB and once MIL uses RTB she won't pay rent so won't be entitled to HB.

If it's HA the RTB discount is different.
Do the children want to purchase MIL house for her (cover the purchase between them) to then rent back from them?

FannyWisdom Wed 21-Feb-18 11:20:48

You only have the right to buy a social housing property that you rent.

If Bill isn't a tenant he has no rtb.

Bumbumtaloo Wed 21-Feb-18 11:29:27

I think that they have said no, she hasn’t been a tenant long enough is because (I assume) she had a joint tenancy and it changed to a sole tenency after FIL died. If that is the case she would only qualify for 3yrs discount and the previous years would not be counted.

As has been said she would not be entitled to housing benefit. And BIL has no right to buy. As far as I’m aware (this is within my LA so may be different) the tenency can only be passed one once, so from joint to sole would mean that the one and only change has now taken place.

CountingDownToBedtime Wed 21-Feb-18 11:33:23

If the MIL was a previous council tenant in the property,& the house was taken over by a HA,she will have preserved the RTB,at a hefty discount.If the property has always been HA then you usually only have the Right to Acquire, which is a significantly less discount.
I was told when I signed my tenancy agreement that I would have only the Right to Acquire at a discount of £10,000.My DM however,who was previously a council tenant,but now HA tenant in same house,would if she ever decided to buy her home,receive a very large discount.

TheQueef Wed 21-Feb-18 11:47:42

Most LA will apply all social tenant years applicable to RTB.
As Bedtime said the RTA is different.

Picklepickle123 Wed 21-Feb-18 12:02:38

Thanks for all your responses. Youve all given me some piece of mind that I'm not going to lose a large chunk of savings to buy a dilapidated house that is rubbish.

I have no idea why the BIL is so intent on purchasing the house, but it's good to know that he can't. I'll let him pootle on for the time being until he realises for himself.

ExFury Wed 21-Feb-18 12:06:30

Also, something to mention to him - he can't buy the house. He and his siblings can't buy the house. It will have to be in MIL's name, it will be MIL's house. So if your MIL needs care it will be sold to pay for that. And LA's are much, much hotter on anything that looks like people giving their houses to their kids to avoid care home fees these days.

And, obviously I don't know how old your MIL is, but being in a HA property can have advantages when a person is older. Yes, they don't have anything to leave for their kids, but adaptions are often done for free. And if she needed a move to a bungalow or more suitable property it can often be easier. There are positives to renting sometimes, especially from a council or HA.

dissidia Wed 21-Feb-18 14:16:15

My siblings and I helped my mum buy her council house. My DSis was able to jointly buy it with her as she moved back in with my mum before doing the RTB application - the names of the people who are allowed to go on the application have to be either the tenant, or family members who have lived in the house for at least a year before buying. So yes, if your MIL is living in the house alone, only her name can be on the RTB application (but your BIL could apply if he is willing to move there for a year before, he doesn't have to be on the tenancy but the council has to be notified that he's living there). My other siblings all put cash in towards the cost of buying, but we didn't go on the deeds (we didn't need a mortgage as the discount was substantial).

My mum had been a tenant for 13 years, and also had been living in another council house for 5 years before that. She wasn't on that first tenancy, but the council still took it into account, so you can ask whether the years your MIL spent living in council/HA properties before going on the tenancy will count. There is a lot more information on the Gov.uk website. righttobuy.gov.uk/. Also have a look at your MIL's HA's website, as the rules are different to council RTB.

dingdongdigeridoo Wed 21-Feb-18 14:31:04

Does she really want to own a dilapidated house? As she ages she’ll be responsible for repairs and upkeep. Surely it’s better to be an HA tenant, as when she’s older and may need a bungalow/retirement flat she’s got a better chance of being moved.

My grandma did RTB in the 80s and is now in a large, unsuitable house that costs her a fortune. She would have been better off as a council tenant.

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