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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

In Charging rent

199 replies

Hooseproblems34 · 17/02/2020 09:05

Hi I'm looking for opinions on what others would do in my shoes. I live in a 2 bed council house and in 3 years time I could own it outright I would need about 12,000 to do this. But I would not be able to save that amount .

I have 3 children and one of them has said they would have the savings to do this as have been saving for a deposit. This would be used as a family home for them as they have DC .

Would I be unreasonable in then charging them rent to live here? The property would still be in my name. But obviously I wouldn't be in the position of owning it if it wasn't for them.

I would like it to go to family. But also have two other children to think about. As one said they would of liked to buy it the other isn't bothered. The two other DC don't have children of their own.

So what would you do? I plan on moving in with my partner so don't plan on living in my house in the next 3 years .

OP posts:
dorisdog · 17/02/2020 11:04

The housing crises isn't caused by the OP buying their council house (although I agree it contributes overall to a housing shortage!)

There are no new council houses being built and barely any affordable 'to buy' homes, so what is anyone supposed to do? Especially if they are on low incomes. No-one stands a chance these days. I say this as someone who grew up in a council house and very much disagrees with the right to buy legislation that was created in the 80s. It's not the fault of people who are poor and on low incomes though! They are stuck between a rock and a hard place trying to secure accommodation for themselves and their families. The whole housing system needs overhauling.

However, OP - I think charging your family member rent if they are contributing £12k, isn't ok, or at least they should have the equivalent rent free time to match their contribution.

mrsm43s · 17/02/2020 11:08

OP, are you sure you have your figures right?

Based on the facts in your OP of a house an you've lived there 26 years, then you'd only be able to buy it for £12K outright if it's full market value was £27K. Surely there's not anywhere in the country that you can still by a 2 bed house for £27K? And if there is, then your DD would be far better off on the open market putting down a £12K deposit and paying a £15k mortgage, which will cost her about £60 a month on a repayment basis over 25 years. (source of information - righttobuy.gov.uk/what-discount-could-you-get/)

If you do want to borrow the £12k from your DD, and charge her rent, you need to factor in that you will need to:
a) repay your DD the £12K plus interest
b) will be responsible for all the maintenance and upkeep - repairs, redecoration, fixing the roof, the boiler, the white goods (if included), replacing the bathroom and kitchen as needed.
c) will have to declare the rental income for tax purposes, and this may impact on any benefits you receive
d) ensure you carry out the necessary EPC, gas checks, fire alarm testing etc
e) have landlord insurance with full liability cover

etc, etc.

WhereShallWeMoveTo · 17/02/2020 11:09

26 years in a council house does not entitle you to buy it at a reduced rate, it's utterly disgusting.

It does actually. It shouldn't, but it does.

Personally I think it's appalling that you are even able to do this - that's not what social housing is for and as far as I am concerned you either rent and stay in it yourself for life or you leave and hand it to over so someone else in need van benefit from it.

I would not sell council houses full stop, but especially not at a huge discount. I don't care how long the tenant has lived there. They've never had to pay to replace the boiler, the kitchen, the garden fence, the tarmac on the drive, the guttering or anything else that owner occupiers woul have had to do after 20 odd years and the rent is always below private market value so why should they (or their children) profit from the state when they've been housed cheaply and securely all these years for relatively little?

lunar1 · 17/02/2020 11:10

If your child is paying for the house, it should be theirs with a legal agreement that it is transferred into their name as soon as legally allowed.

Or they should just leave you to it and buy their own house where you have no hold over them.

Angelw · 17/02/2020 11:13

Op SH is for people and families facing desperate need. If you don’t need it, (as you said you won’t be) then give it up. You can even do better by giving it up now and moving in with your partner ASAP!

You seem so confused by it all. Why would your DC buy it for you then pay you rent when they don’t even own a home themselves? You are selfish and thoughtless.

Rosehip345 · 17/02/2020 11:14

Yep sometimes parents really are this shit 🤷‍♀️

Mine waited until me and my boyfriend had paid for and completed the renovations before changing their minds about changing the names on the purchase.

They now privately rent it out for since income, whilst it took us a further seven years to resave what we’d lost.

You should be ashamed. I hope your kids realise that you’re out for whatever you can get before they’re left up a creek without a paddle.

purdypuma · 17/02/2020 11:16

I will start by saying that firstly I don't disagree with right to buy as it has opened the door to home ownership for many, whom otherwise it would have remained a pipe dream. Several members of my family including my gran & sister have bought theirs from the local authority, substantially discounted in line with how long they have held their tenancies. All have worked, paid full rent beforehand & gone onto fund significant improvements to the houses they have bought. They have then continued to live in their homes as owners as opposed to renters & as far as they are concerned the houses now are their homes for life.
However, what I do not agree with in this case is the fact that the poster does not intend to stay in their home & plans on moving in with her new partner in the future. IMHO opinion the purchase should be refused by the local authority, but unless the poster declares her intentions then I would imagine they would have no knowledge & subsequently no powers to decline a sale of the house to the poster.
With regards to the daughter effectively funding the funds for the purchase, in her mothers name then the only suggestion i can offer is that the mother offers to let the daughter live rent free for a period, eg 2 years based on a rental figure of 500 x 24 months which would allow the daughter to re-save the 12K loaned to her mother.
There are very specific rules relating to what a tenant purchasing their council/SH property can & cannot do following the purchase in my local area, so the poster would be well advised to look into these.
In an ideal world the poster should be handing back the property to the local authority once she no longer has need for it but she clearly views this as a chance to purchase a cheap property, rightly or wrongly.

LakieLady · 17/02/2020 11:18

Well I have lived here for over 26 years and would like it to go to family

If you wanted a home that could "go to family", you should have bought one.

To use your RTB to benefit a family member is morally wrong, even if it's legal.

Oysterbabe · 17/02/2020 11:20

Is seems like the real question is:

AIBU to ask my child to give me 12k.

What are they actually getting for their money? The right to rent a house? They can do that now and keep their money.

Alsohuman · 17/02/2020 11:20

26 years in a council house does not entitle you to buy it at a reduced rate

Actually it does. OP has already paid for the place with 26 years of rent. If it were me I’d borrow the money and repay it over longer than three years, OP.

WarrenNicole · 17/02/2020 11:23

Rights and wrongs of Right to Buy aside, you have more than one child expressing interest in buying the property. On that basis alone, if you are not able to buy it, then no one should.

I am really confused by your post however.

Are you allowing your child with the family to buy the house, or are you borrowing £12,000 from them to buy the house? Because, either way, no one should be paying rent to you. If your child is buying the house, then it is their house. If you are borrowing the money to buy the house, then you would be the one repaying money to your child.

It seems like you are only looking at this from the point of view of your own interests and not that of any of your children.

If you wanted to be fair, you could look at it as an investment and you and all 3 children buy it by contributing an equal amount i.e £3,000 each. But that wouldn’t benefit you, would it?

IndecentFeminist · 17/02/2020 11:24

By all means buy it, but if you use their money to do it don't them charge them rent.

woodhill · 17/02/2020 11:29

I remember working with people who were boasting about buying their council houses dirt cheap and then how much profit they would make selling them on😕 just wrong.

woodhill · 17/02/2020 11:29

I remember working with people who were boasting about buying their council houses dirt cheap and then how much profit they would make selling them on😕 just wrong.

BubblyBarbara · 17/02/2020 11:32

If you no longer require the social housing you hand it back to the local authority and that is that.

It won’t be social housing once she’s bought it

mamamalt · 17/02/2020 11:32

@woodhill there is a program on c5 at the moment called something like council house millionaires about just that.
To add OP (if she comes back) give the house back and let another family have the benefit you did.

Dontdisturbmenow · 17/02/2020 11:33

At the moment OP is dependent on her child to agree to giving or loaning her the money.

Hopefully they will get legal advice and realise that there would no it very little benefit for themselves. The only interest would be if they can then buy the house of OP in a few years, but I understand selling a council property after benefiting from RTB are now more stringent and likely to have to wait younger. The longer they delay buying, the harder it will be.

IJustCantDeal · 17/02/2020 11:34

I’m confused, are they giving you the 12k? or would that be their rent? or are you saying they would buy the house from you 12k being the start?

NRPDad · 17/02/2020 11:34

YABU and this sounds very scammy.

Even if your general principle of RTBing the house then letting your DC and her children live there was acceptable - you would charge rent equal to the mortage and then let them buy the house from you at a value equal to the outstanding mortgage when the RTB terms are met. i.e. you make zero money from it as you wouldn't have been able to buy the house without your DC

woodhill · 17/02/2020 11:35

This was the early 90s so that makes sense mama. I don't think I could bear to watch that programme, too annoying

WarrenNicole · 17/02/2020 11:42

And when do you suggest the child who buys the house stops paying you rent? Who would pay £12,000 to rent a house! Crazy.

Alsohuman · 17/02/2020 11:57

Who would pay £12,000 to rent a house!

Most people who rent at market rate. That’s a year’s rent round here.

gamerchick · 17/02/2020 12:17

Man, I love a frothy council house thread. Makes me feel all warm inside GrinGrinGrin

ItWentInMyEye · 17/02/2020 13:02

As someone who lives in a council house, you absolutely SHOULD NOT buy this house for your child(ten)! Very shady move on your part. I'd maybe understand if it was your forever home, but for you to do this is appalling.

RhymingRabbit3 · 17/02/2020 13:07

The OP has paid years and years of rent, which is effectively money down the drain. She should be allowed to get something in return for that.
Would you say the same for someone who rents privately and, if not, why not?

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